FERTILISER giant Incitec Pivot Ltd has faced new allegations of abusing its market power.

Large north-western NSW grain grower Ron Greentree last week told a Senate inquiry into fertiliser markets he had been put in the position of having to buy liquid fertiliser NH3 from IPL through its Brisbane plant at what he believed were excessive prices.

Mr Greentree also alleged that IPL had tried to frustrate his efforts to import urea and did not allow direct road access to its Mt Isa plant for purchase of MAP and DAP fertiliser, Mr Greentree said.

Australian Competition and Consumer Commission chief executive Brian Cassidy told the inquiry the ACCC would look at Mr Greentree's allegations.

He said the ACCC was "very interested'' in any suggestion of impediments to new entrants into the fertiliser market.

There was no provision in trade practices law to deal with high prices, but “our role is to make sure markets work'', Mr Cassidy said.

A spokesman for IPL told The Weekly Times the company had requested on several occasions during the inquiry that direct evidence, if available, be provided for unbiased scrutiny and investigation.

“No such factual evidence has been provided that we are aware of,” he said. "Rather, we have seen anecdote, innuendo and hearsay continually presented to the inquiry."  

"We will continue to co-operate with the Senate committee (conducting the inquiry) by providing accurate information and we await its final report."

Mr Greentree told the inquiry he had been unable to purchase NH3 from a Newcastle plant operated by Orica, alleging he had been informed that the Newcastle plant would not sell to farmers who could only only buy from IPL through its Brisbane outlet.

Asked if he thought there was evidence of collusion in the market, Mr Greentree said: "Most definitely."

He said he had been "very frustrated'' with the retail pricing of local fertiliser, which seemed to be well above the price at which imports could be acquired and delivered on farm.

So he had decided to make arrangements to import urea directly, organising with a local retailer to import 10,000 tonnes earlier this year through a port in Libya.

He said IPL also used the same ship to transport fertiliser and had put up "every obstacle'' to delay the shipment.

IPL had "slowed it right down'' once they knew another supplier was involved, Mr Greentree alleged.

The urea arrived in mid-April compared with an expected arrival date of end-February, he said.

It was one of the "hardest experiences" he’d had to go through, Mr Greentree said.

He said buying MAP and DAP from IPL's Phosphate Hill plant at Mt Isa was also made difficult and costly by the lack of any truck loading facilities at the plant.

He said the plant only had a rail outlet to port facilities at Townsville, which meant he could not use trucks to get fertiliser straight to his farm.

Mr Greentree said he was looking to start up his own small plant to make NH3 once he had direct access to natural gas.

After providing data on wholesale and imported fertiliser price movements, Mr Cassidy told the inquiry IPL did not have a monopoly of the local market, but still had "significant'' market power.

He said the company had "probably'' exercised that power late last year and early this year in keeping local prices higher than world prices.

But Mr Cassidy said this had prompted the expected market response, with several moves to import fertiliser. "Our job is to make sure that entry can occur.''

The ACCC also gave evidence to the inquiry in camera, which was understood to include an update on its inquiries into previous allegations by Leighton Huxtable, whose Direct Farm Inputs company has also been importing fertiliser.