India’s Fertilisers And Chemicals Travancore is negotiating a three-year contract to buy 250,000 metric tons of rock phosphate annually from Togo’s SNPT. This would be India’s first long-term fertiliser deal with Togo, aimed at mitigating price volatility and securing supply amidst rising agricultural demands.
India’s Fertilisers And Chemicals Travancore (FACT) is reportedly negotiating a three-year contract to procure rock phosphate from Togo, aiming to enhance its supply sources. This potential deal would represent the first long-term fertiliser contract between an Indian company and Togo. Sources indicate that FACT plans to acquire 250,000 metric tons of rock phosphate annually from Societe Nouvelle des Phosphates du Togo (SNPT).
Currently, both FACT and SNPT have not provided comments regarding the negotiations. Indian businesses are increasingly seeking long-term fertiliser import agreements to mitigate the impacts of price fluctuations and supply shortages, which are crucial for India’s agriculture sector, responsible for 15% of the nation’s substantial $2.7 trillion economy.
Last month, FACT initiated a non-binding agreement to buy rock phosphate from SNPT, where most negotiating details have been settled excluding pricing. The contract includes provisions for quarterly price discussions. Over the past few years, India’s rock phosphate imports from Togo have seen consistent growth, with purchases being conducted on a spot basis. In the fiscal year ending March 31, 2024, Indian firms are anticipated to import approximately 1.1 million tons of rock phosphate from Togo, marking a 30% increase from the preceding year.
In conclusion, FACT is on the verge of finalizing a significant long-term deal with Togo, aimed at securing a steady supply of rock phosphate. This strategic move is driven by the need for Indian firms to stabilize costs and ensure they meet agricultural demands effectively. As India increases its dependency on Togo for rock phosphate, it reflects the growing trend of entering long-term agreements to address supply uncertainties in the fertiliser sector.
Original Source: theprint.in
