Sdomite.... I've watched you soft bash for a many weeks now and while you like to come off as teh know it all expert, you seem to forget some people here know the industry and what's going on...

 

I agree that the Indian farmer is poor, and that Government subsidies drive the application of fertilizers, but don't tell us that Potash is replacable as it isn;t.  The application that should be 2:1 ratio with nitrogen / Potash is now 10:1 Nitrogen / Potash.... This is due to the lack of government subsities on Potash.  Why???? Because the Indian government want to drive the price of potash down by holding off.... Do you think the Indians talk to the Chinese who togeter represent the majority of the potash market??

 

Bottom line is the government subsidizes fertilizers and will continue to do so as the poor / uneducated farmers need to be told for the most part what to apply for fertilizers.  Most fertilizers are NPK compounds that are compacted or steam granulated as a homogeneous fertilizer.  THe farmer is buying the brand from his local retail outlet for the most part not understanding what's in it.  The governement controls the nutrient regulations and only a few years ago approved Sulphur as a nutrient even though 70% of Indians soils are deficient in Sulphur!  The major fertilizer manufacturers and distributors will sell the fertilizers for a competative price in the market, and if Potash isn't subsidized as what it should be they cut it back and add more less expensive niutrients such as Urea that is heavily subsidized.

It's not if a farmer can afford the potash, it's a matter of government regulations and food security.  The Indian governement in my prediction will subsidize potash to increase it's applications to improve the soil imbalance.  Potash consumption will increase.... and more IMPORTANLY the Indians will look for securing potash deposits outside CANPOTEX and the current cartel.... This is the real story here... It's not about the poor poor farmer of India.... The government knows it's going to subsidize fertilizer for the poor, so the real question is....

 

"How do you reduce your fertilizer subsity program?"....  Secure your own supply....

 

Take a look at the 2008 article how food production is not meeting the demand requirements of a growing population... Tell me that India won't consume more potash in the future!

http://www.nytimes.com/2008/06/22/business/22indiafood.html?_r=2&

 

P.S.  The Indians are cheap.... they will be looking for the best deal IMO.... ask yourself who has the lowest CAPEX and OPEX of all potash juniors on the market??  Lower freight costs??

 

DO your DD people, look to the Allana web site for more info www.allanapotash.com

 

Ferti