# Potash demand destruction likely in India, after Gov't hints at subsidy cut - MINING.COM

> The Indian government proposed cutting its potash subsidy by 17% to reduce fiscal debt. Higher import costs would reduce Indian potash demand, which is about 4 million tonnes a year and fully imported. Potash prices were hovering just above $200 a tonne, more than half their level of five years ago.

- Date: 2017-02-20 · published 2017-02-20T12:00:00.000Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/72832-potash-demand-destruction-likely-in-india-after-gov-t-hints-at-subsidy-cut
- Commodities: [Potash (KCl)](https://feedsoft.ai/c/POTASH.md)

## Why it matters

A lower subsidy would raise India's landed potash costs and weaken its purchasing power in new contract talks. That would likely push potash prices lower, hurting producers such as Canpotex members.

## Read by commodity

- POTASH: bearish ▼

## Sources

- mining.com: https://www.mining.com/potash-demand-destruction-likely-in-india-after-govt-hints-at-subsidy-cut/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.