Global demand to grow more food and fuel through higher-yielding crops is causing demand for fertilizer to soar along with prices. Potash is a fertilizer that is used in cotton, corn and soybean production. In 2006, U.S. growers used an estimated 310,000 tons of potash in cotton acreage, 1.901 million tons in corn production and 755,000 tons on soybeans. China, India, Brazil and the U.S. are the main consumers of potash in the world, as well as being the largest importers at over 500,000 tons each. Canada, Russia, Belarus and Germany are the largest exporters. Recent wholesale price negotiations for potash with the largest exporters suggest that growers worldwide face a doubling or more in future potash costs. Large sales to India were recently completed at 625 U.S. dollars (USD) per ton, which was up 355 USD per ton for an over 100-percent increase, while prices to Brazil were raised 150 USD per ton to 750 USD. Canada and Russia, two of the largest exporters, just confirmed they had raised prices to China by 400 USD per ton. One Chinese importer purchased one million tons at the higher price from Canada and 2.2 million tons from Belarus. The sharply higher potash prices means a significant increase in worldwide cotton production costs during 2008/09 and 2009/10.

Source：Globecotnews