India is ready to pay more for Belarusian potash fertilizers than last year

The Belarusian Potash Company has signed a major contract with India for the supply of potash fertilizers. The Indian company IPL is ready to pay Belarus $383 per tonne of potassium chloride. This is $34 more than in the previous contract.

According to analysts, agreements with the largest consumers — India and China — typically set prices for the entire market. Therefore, the Belarusian-Indian agreement may push market prices higher.

According to Argus Potash estimates, last year the Belarusian Potash Company was set to deliver around 650,000 tonnes of fertilizers to India at $349 per tonne.

Notably, the potash fertilizer market looks better than the nitrogen fertilizer market. There, following a three-month halt in shipping through the Strait of Hormuz, prices initially began to rise, but now a sell-off of stocks from producers' warehouses is underway, causing prices to drop significantly. 

The United States lifted sanctions on Belarusian potash fertilizers in late March 2026 in exchange for the release of a group of political prisoners. However, sanctions imposed by the European Union remain in force. These include a ban on the transit of Belarusian fertilizers through EU territory, particularly to the port of Klaipėda. The European Commission and Lithuania have both stated that they see no grounds for reviewing these sanctions.

In May, the U.S. State Department sent letters to Lithuania, Poland, and Ukraine asking them to consider allowing the transit of Belarusian fertilizers. However, as of now, all three countries have rejected that possibility.