Fertilisers and Chemicals Travancore is negotiating a long-term contract to import rock phosphate from Togo. They plan to secure 250,000 metric tonnes annually from SNPT for three years, marking India’s first such agreement. This move aims to address supply and price volatility in the fertilizer market essential for agriculture.
Fertilisers and Chemicals Travancore (FACT) is negotiating a three-year contract to purchase rock phosphate from Togo, aiming to broaden its supply sources. This deal would represent the first long-term fertilizer agreement between an Indian company and Togo. Reports indicate that FACT intends to acquire 250,000 metric tonnes annually from Societe Nouvelle des Phosphates du Togo (SNPT).
Sources mention that while the specifics of the deal are being finalized, including quarterly price negotiation clauses, no comments were received from FACT or SNPT. Indian firms, including FACT, are pursuing long-term fertilizer import contracts to manage risks associated with price fluctuations and supply shortages, crucial for the agriculture sector that makes up 15% of India’s $2.7 trillion economy.
In the previous month, FACT signed a non-binding agreement to secure rock phosphate from SNPT, with details finalized except for pricing. Rock phosphate imports from Togo have been increasing steadily, with Indian companies acquiring a total of 1.1 million tonnes in the fiscal year ending March 31, 2024, representing a 30% increase from the previous year, according to the Fertiliser Association of India.
The ongoing negotiations between Fertilisers and Chemicals Travancore and Togo’s SNPT highlight India’s strategic efforts to ensure a stable supply of rock phosphate. The deal, aimed at securing imports for the agricultural sector, signifies a growing trend among Indian firms to mitigate risks related to fertilizer pricing and availability. With a recent increase in imports from Togo, India is strengthening its supply chains amid a competitive global market.
Original Source: www.business-standard.com
