Potash producers, suppliers sued for alleged price fixing

NEW YORK, Sept 12 (Reuters) - Potash Corp of Saskatchewan (POT.TO: Quote, Profile, Research, Stock Buzz), Mosaic Co (MOS.N: Quote, Profile, Research, Stock Buzz), Agrium Inc (AGU.TO: Quote, Profile, Research, Stock Buzz) are among a host of potash producers and suppliers that have been sued by a Minnesota fertilizer maker, alleging price-fixing schemes by the companies.

The suit, filed on Thursday by Minn-Chem Inc, alleges that potash producers and suppliers have since 2003 conspired to fix, raise, maintain and stabilize the price of the crop nutrient in the United States at artificially inflated and anti-competitive levels.

Potash producers across the globe have reaped bumper profits in recent months as potash prices have more than quadrupled over the last year, due to growing demand and tight supply conditions. Potash is a key crop nutrient used by farmers across the globe.

China, which is one of the world's largest potash importers is currently paying about $650 to $670 per tonne for potash, but China is likely to have to pay $1,000 per tonne or more for next years imports, according to industry experts.

Minn-Chem also accuses Uralkali (URKA.MM: Quote, Profile, Research, Stock Buzz) (URKAq.L: Quote, Profile, Research, Stock Buzz), Silvinit SILV.RTS, Belaruskali, Belarusian Potash Co (BPC) and International Potash Co (IPC) of being a part of the conspiracy.

BPC is the potash export arm of Uralkali and Belaruskali, while IPC is Silvinit's export arm. Potash Corp, Mosaic and Agrium have their own export arm called Canpotex. However, Canpotex does not supply U.S. demand and has not been named as a defendant in the lawsuit.

Simultaneously, a similar lawsuit was filed by Gage's Fertilizer & Grain Inc, naming the same set of defendants and has been filed in the United States District Court, Northern District of Illinois.

Potash Corp has declined to comment on the Minn-Chem suit, while Agrium said it is in the process of reviewing the allegations, but it believes that the allegations lack merit.