TSXV:AAA.P - Post by User
Comment by
Karmanowon Oct 13, 2011 1:28am
400 Views
Post# 19144437
RE: RE: The Heat is on in India
RE: RE: The Heat is on in Indianext_big_thing...its not that easy...you can not "nationalize" something you do not own or produce in your country.
And India already has the largest "fertilizer subsidy" to farmers in the world....so, the heat is really on India...and what to do?
We already know that the Indian Government has given signals that they "must" secure long term fertilizer supplies...
Their attempt to buy the 20% stake in Belarus Potash is just out of their league...the Agriculture Minister has already stated that it will depend on how much the large Indian Banks can raise....Belarus Potash is russias to loose...Russia is now in the market to bid on the Belarus Potash reserves...and Belarus must be careful as Belarus is planning to ask Russia to loan them billions of dollars...
I think India will have to come up with a Plan B and a Plan C...
In Plan B..someone senior in the Indian Government is going to demand to know...where is there large reserves of potash MOP and SOP available in the world?...and then demand to know how to get in the game with either long term off take agreements or a buy out of the total reserves...and the minister instructs his subordiantes to not return to the table until they have something concrete to offer India........"its not rocket science boys...get er done"....that is common sense and more likely than any other option on the table for India right now....but then there is Plan C where the Indian Government asks her people to "stop having children" for the next 20 years and thus stop the increasing demand for more food....and at the same time try to convince the increasing indian middle class to reduce their expectations on "eating more meat".....
I think Plan B is more likely dont you?
Karma