Canpotex, the marketing agent for Saskatchewan potash, announced a new contract with a consortium of Indian buyers for the shipment of 600,000 metric tons of the plant nutrient through June at $370 US per ton.

The sale of Saskatchewan potash to India at a price of $370 US per ton may raise the standards of the for upcoming provincial revenue projections.

Energy and Resources Minister Bill Boyd said the Government was looking at the new contract as an indication of what potash prices would average in the year.

"Somewhere in that neighborhood would be a safe indication of where we think prices is going to be", Boyd said.

The province will base potash revenue projections for its 2010-11fiscal year on a price in the range of $350 to $400 US per ton. Last year, Canpotex sold India 850,000 metric tons of potash for $460 US per ton.

The Government conceded that its revenue from potash sales would ring in at less than $100 million.

Boyd looks to the deal with India as another signal that 2010 will be a turnaround year for potash.