Indian fertiliser company FACT is in talks to purchase rock phosphate from Togo’s SNPT for three years, motivated by the need for long-term supply agreements amid price fluctuations. The agreement contains provisions for quarterly price negotiations. Recent data indicates a significant rise in India’s rock phosphate imports from Togo, highlighting an ongoing shift from spot purchases to more structured procurement.
The Indian fertiliser company FACT is reportedly negotiating a long-term agreement to procure rock phosphate from Societe Nouvelle des Phosphates du Togo (SNPT) for a duration of three years. This strategic move comes as Indian firms, driven by the need to mitigate price fluctuations and ensure a steady supply of essential soil nutrients, actively seek long-term fertiliser import contracts to support the agricultural sector, which contributes significantly to the national economy.
In a recent development, FACT signed a non-binding agreement with SNPT to purchase rock phosphate, although specific details regarding pricing arrangements remain to be finalized. The current contract allows for quarterly price negotiations, indicative of the evolving dynamics within the fertiliser market.
The import of rock phosphate by India from Togo has notably increased over the past few years, transitioning largely from spot purchases to more stable sourcing agreements. Data provided by the Fertiliser Association of India highlights that during the fiscal year ending March 31, 2024, Indian companies imported approximately 1.1 million tons of rock phosphate from Togo, marking a 30% increase compared to the previous year.
In summary, the potential agreement between FACT and SNPT exemplifies India’s strategic initiatives to secure long-term fertiliser supplies amidst rising agricultural demands and market uncertainties. With a 30% increase in rock phosphate imports from Togo in the last fiscal year, this growing partnership underscores the importance of stable sourcing in supporting the nation’s agricultural framework.
Original Source: m.economictimes.com
