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 Societe Nouvelle des Phosphates du Togo. This arrangement aims to enhance supply sources amid increasing demand in India’s agricultural sector, which represents 15% of its economy. Key details, including pricing, are under negotiation, marking a strategic effort to secure stable fertiliser supplies.
India’s Fertilisers And Chemicals Travancore (FACT) is negotiating to establish a three-year agreement for the purchase of rock phosphate from Togo, according to sources familiar with the matter. This proposed contract marks a significant development, as it would be the first long-term fertiliser deal between an Indian company and Togo. FACT aims to acquire 250,000 metric tons of rock phosphate annually from the Societe Nouvelle des Phosphates du Togo (SNPT).
The discussions come amid Indian firms’ increasing interest in securing long-term fertiliser import deals to protect against fluctuating prices and potential shortages of essential soil nutrients. The agricultural sector, which constitutes 15% of India’s $2.7 trillion economy, relies heavily on stable fertiliser supplies. Despite the current contract discussions, pricing details remain undisclosed; however, there is an agreement for quarterly price negotiations.
Prior to this potential contract, FACT had entered into a non-binding agreement to purchase rock phosphate from SNPT last month. Indian imports of rock phosphate from Togo have seen a substantial rise, with spot purchases dominating transactions in recent years. In the fiscal year ending March 31, 2024, Indian companies are projected to import approximately 1.1 million tons of rock phosphate from Togo, marking a 30% increase from the previous year, as reported by the Fertiliser Association of India.
The proposed contract between India’s FACT and Togo’s SNPT represents a strategic move by Indian firms to secure stable fertiliser supplies, reflecting a broader trend of long-term agreements to mitigate price volatility in the agriculture sector. With substantial increases in rock phosphate imports from Togo, this deal could fortify India’s agricultural foundations in response to rising demand.
Original Source: theprint.in
