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India, Belarus fertiliser tie-up under cloud

Is there an American ‘mole’ in the Indian cabinet? Seems so! On Wednesday the cabinet formally approved a proposal that India should acquire potash mines and fertiliser assets abroad on a priority basis as one way of meeting the country’s acute shortage. The global price is sky-rocketing. Curiously, the same day, US imposed fresh sanctions against Belarus on account of that country’s alleged democracy deficit and the new sanctions include Belarus’ Grodno Azot fertiliser manufacturer.

The catch is that Belarus is one country that India has zeroed in for making investments in the fertiliser sector. GA is doing splendidly well and is targetting a 40% increase in production capacity by 2016. Out of Its present capacity to produce 7 lakhs tonnes of mineral fertilisers, GA exports about 40% of its production volumes. India can be potentially a big partner for Belarus.

However, US also eyes India as a captive market. The US Revealed Competitive Advantage [RCA] value shows US RCA for fertiliser at higher than 1.25, which means that from a supply aspect, the export item is expected to show a high growth rate. (There are only 12 items in major US exports to India with more than 1 RCA value.) A challenger from Belarus with proven capacity is the last thing US would want when it is firing all 8 cylinders to boost exports — be it fertiliser or weapons. It’s a mean world. Why should it matter if Belarus aspires to make a livelihood out of fertiliser exports?

Posted in Politics.

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4 Responses

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  1. Dipak Bose says

    Kissinger named Morarji Desai, and Jagjivan Ram as the US moles in India government. There was another in the Indira Gandhi’s cabinet, possibly YB Chavan. Now even the OM can the American mole, given the fact that he has completely surrendered to USA.
    There must be a huge competition both in The Congress and in the BJP, who can be the mole, so that his son can to USA to do a MBA with full financial support.

  2. kumarswamy says

    Hope, the game shifts to neutrality, so no one can have a hold and get a middle ground irrespective of moles and anti-moles. However, being said that, india should limit the engagement with the US untill they settle the trade imbalance with china.

  3. Raghavendra Bhartia says

    Running a story saying that there is an US mole in the India cabinet is premature. India should secure its procurement assets by fixing the deal, be it the US or Belarus. Let us also negotiate a barter deal with the US, with anybody who has comparable prices for supply of fertilizers. This has to be done immediately to save our farmers from paying a hefty price for potash and other nitrogenous fertilizers. The price has to be massively supported by the GoI, these raw materials should be supplied without interruption.

  4. navi_reyd says

    Yes, perhaps, just like there were numerous Soviet moles in the Indian cabinets during the Cold War. So what?

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