Phosagro, Russia’s leading fertilizer maker, has called on India to drop its 5% import duty for Russian producers to ensure stable supplies in the future.
The appeal came after Indian Prime Minister Narendra Modi discussed fertilizer imports during his visit to Moscow.
India, the world’s second-biggest fertilizer importer, sourced a quarter of all its imported fertilizer from Russia in 2023. Phosagro noted that its exports to India grew six-fold in 2022 alone, following Western sanctions.
Modi thanked Russian President Vladimir Putin for supporting Indian farmers with stable supplies of fertilizers. During the talks, Russia and India set a bilateral trade target of $100 billion by 2030, up from the current $65 billion.
“We are ready to boost fertilizer supplies further, but our capacity is limited by existing trade barriers, which raise the cost of our products for our Indian customers,” Phosagro said in a statement.
The company suggested that one way to remove the duty for Russian producers would be to create a free trade zone between India and the Eurasian Economic Union, which comprises Russia and four other former Soviet states.
In a bilateral statement after the talks in Moscow, Russia and India agreed to continue cooperation in the field of sustainable fertilizer supplies to India, based on long-term contracts between companies.