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Fertlizer Cost in India Can Go Down by 50% , with Iran Supplying Natural Gas at $2.95/mmbtu

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Iran has offered to supply natural gas at $2.95 for a urea plant that India will set up at Chabahar port on the Persian Gulf, but New Delhi wants rates to be lowered. 
Source:  ET

SNP Insights

Construction of Urea plant at Iran, with a natural gas supply at $2.95, almost 50% less than current spot market price, would make urea production cost almost half. Being an agrarian economy, this reduction in cost of Urea, will save huge subsidy burden on govt. which is spent to supply cheap fertilizer to farmers.

Pertaining to fact that, after revocation of sanction from western countries, Iran is in dire need of investment to bolster its economy, India can bargain even more effective gas supply deal in terms of even less cost for gas supply & hence ensuring low cost fertilizer supply to India.

Source: SNP Infra Research