India’s Fertilisers And Chemicals Travancore is negotiating a long-term, three-year contract to import 250,000 metric tons per year of rock phosphate from Togo’s SNPT, marking a first for Indian companies in Togo. This move aims to stabilize supply and pricing in the agricultural sector of India’s $2.7 trillion economy.
India’s Fertilisers and Chemicals Travancore (FACT) is in discussions to establish a long-term agreement to import rock phosphate from Togo’s Societe Nouvelle des Phosphates du Togo (SNPT). This potential contract, valued at 250,000 metric tons annually for three years, would represent an inaugural long-term fertiliser transaction between an Indian firm and Togo.
The initiative is driven by Indian companies seeking long-term fertiliser contracts to mitigate the risks associated with price fluctuations and supply interruptions vital for the country’s agricultural sector, which constitutes 15% of India’s $2.7 trillion economy. FACT previously entered a non-binding agreement with SNPT for the phosphate supply.
While specifics, excluding pricing, have reached consensus, provisions for quarterly pricing negotiations are included in the deal. India’s imports of rock phosphate from Togo have shown a consistent increase, with the country acquiring 1.1 million tons in the fiscal year ending March 31, 2024, marking a 30% rise year-over-year.
These developments highlight a strategic move by FACT to diversify its supply chain and enhance resource stability as demand for agricultural inputs grows in India.
FACT’s negotiations to secure a three-year deal for phosphate from Togo reflect a significant commitment towards stabilizing supply chains amidst rising agricultural demands in India. The agreement, if finalized, would be transformative for India-Togo relations in the fertiliser sector. Furthermore, it underlines the broader trend of Indian firms pursuing long-term import strategies to tackle price volatility and supply challenges in agriculture.
Original Source: manufacturing.economictimes.indiatimes.com
