OREANDA-NEWS. May 20, 2008. Belarus will continue subsidizing the supplies of potash, nitrogen and phosphoric fertilizers to domestic consumers, First Deputy Prime Minister of Belarus Vladimir Semashko told reporters at the IFA conference in Vienna.

According to him, the price in the domestic market is \\$46 pt while for foreign consumers the price is \\$650. According to Vladimir Semashko, “even developed countries subsidize their agriculture industries, yet subsidies account for 15-20%, not more.”

Taking into account the preferential taxation in the agriculture industry, subsidized energy supplies and other measures of support, the subsidies in Belarus range from 50 to 60%. The rural revival programme is aimed at reducing the subsidies to 25-30% by 2010. “Yet, the government will continue subsidizing supplies of fertilisers as this issue is crucial in ensuring food security of the country,” Vladimir Semashko said.

Belarusian Potash Company (BPC) has signed contracts to supply fertilizer to the countries of Southeast Asia at the price of \\$1,000 per tonne (pt), BPC general director Vladimir Nikolayenko said at the conference of the International Fertilizer Industry Association (IFA) in Vienna on May 19-21.

This price comes into effect from July 1, 2008, Vladimir Nikolayenko said. According to him, there is a deficit of potash fertilizer on the world market. The prices for fertilisers have been growing on the heels of the increasing food consumption in many countries, development of biofuel production and other factors. Long-term contracts which BPC has signed with major exports of India and China could not go unnoticed by the world market, he said. “We agreed the prices of \\$625 pt in India and \\$650 pt in China, he said.

BPC holds more than a one-third share of the world fertilizer market. In 2008, Belaruskali is set to increase exports to \\$2,8-3 billion and the Russian company Uralkali’s to \\$1,7 billion. “We work without middlemen therefore our producers get the money within two weeks after the delivery,” Vladimir Nikolayenko said. BPC is now considering the purchasing of seaport terminals in order to enhance the efficiency of supplies.

According to Vladimir Nikolayenko, every year Belaruskali invests more than \\$300 million in the development of the resource base and production upgrade. The construction of two new mines is slated for completion in 2009 and 2012. Russia’s Uralkali invests more than \\$250 million annually in the production modernization.

Belarusian Potash Company is a leading world potash supplier and the sole exporter of potash fertilizers produced by Belaruskali (Soligorsk, Belarus) and Uralkali (Berezniki, Russia). Founded in 2005, the company holds a one-third market share. The company exports products to Africa, Europe, India, China, USA, Pacific region, Central and South America. BPC has also a well-developed distribution network and representative offices in Beijing (China), New-Delhi (India), Singapore, Sao Paolo (Brazil), Chicago (USA).