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posted on May 23, 2008

India accuses potash producers of unfair prices

By: Sean Silcoff
Published: Wednesday, May 21, 2008
Source: Canwest News Service; Financial Post

VIENNA, Austria -- For three decades, India has subsidized its fertilizer industry to keep costs low for farmers. Now, with prices for chemical crop nutrients soaring, that subsidy is taking a giant bite out of the nation's coffers and India's agriculture leaders are accusing the world's producers, led by Potash Corp. of Saskatchewan Inc., of pushing prices too high and exacerbating the global food crisis.

"What we've observed in the last year is a cartelization of suppliers," said U.S.

Awasthi, managing director of one of the world's largest buyers of fertilizer, Indian Farmers Fertilizer Co-operative Ltd. (IFFCO), with 55 million members, many of them small holder farmers.

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