Fertiliser And Chemicals Travancore (FACT) is in talks to sign a three-year deal to import 250,000 metric tons of rock phosphate annually from Togo’s Societe Nouvelle des Phosphates du Togo (SNPT). This would be India’s first long-term contract with Togo, aimed at diversifying import sources and stabilizing prices for the agricultural sector, which is vital to the economy.
Fertiliser And Chemicals Travancore (FACT), an Indian company, is negotiating a three-year contract to purchase rock phosphate from Togo. The agreement aims to secure a reliable phosphate supply, enhancing India’s fertiliser import sources. Notably, this would represent the first long-term fertiliser transaction between an Indian firm and Togo, with FACT planning to acquire 250,000 metric tons per year from Societe Nouvelle des Phosphates du Togo (SNPT).
Details regarding the deal are nearly finalized, excluding pricing, which includes a provision for quarterly negotiations. Indian companies are eager to establish long-term fertiliser agreements to mitigate price fluctuations and supply uncertainties in the agricultural sector, a critical part of India’s economy that contributes 15% of the country’s $2.7 trillion GDP.
In the fiscal year ending March 31, 2024, Indian imports of rock phosphate from Togo are projected to reach 1.1 million tons, reflecting a 30% increase from the previous year. Historically, these imports have been conducted on a spot basis. FACT’s initiative symbolizes a strategic shift towards securing more stable and affordable nutrient supplies to support India’s vast agricultural needs.
The negotiations between FACT and SNPT for a long-term phosphate supply represent a significant move towards stabilizing India’s fertiliser sourcing. As the agricultural sector seeks to mitigate price volatility and ensure consistent nutrient access, this partnership highlights the growing importance of international agreements in fulfilling India’s agricultural needs. With increasing imports from Togo, the trend indicates a robust demand for rock phosphate, underpinning the sector’s future growth.
Original Source: theprint.in
