The Saskatchewan Potash Prorationing and Price Stabilization Program

In 1970, the Government of Saskatchewan instituted a program aimed at resolving the dilemma of excess productive capacity over the market demand which existed for potash produced in Saskatchewan. The two primary elements of the program were prorationing of potash production to market demand and a minimum selling price. The paper reviews the factors, both local and international in nature that led to the introduction of the program. The licensing mechanics and the operation of the program, along with the changes that have been introduced in two and one-half years of operation, are discussed. Attention is given to the results of the controls as they affect the industry and the province. Also discussed is the outlook for Saskatchewan potash in world markets.