India’s Fertilizer Company is negotiating a three-year deal with SNPT for rock phosphate imports to reduce supply risk and price volatility. FACT recently signed a non-binding agreement with SNPT, reflecting a trend where Indian firms are increasing imports from Togo, with 1.1 million tons bought in the last fiscal year, a 30% increase since last year. The deal will involve quarterly price negotiations, highlighting the focus on stabilizing fertilizer supply.
India’s Fertilizer Company (FACT) is currently negotiating a deal to acquire rock phosphate from Societe Nouvelle des Phosphates du Togo (SNPT) for a period of three years. This move aligns with Indian firms’ strategies to establish long-term fertilization import agreements to mitigate against price fluctuations and supply deficits impacting the agriculture sector, which constitutes 15% of India’s $2.7 trillion economy.
In a recent development, FACT signed a non-binding agreement for the purchase of rock phosphate from SNPT, as stated by anonymous sources. This transaction is part of a larger trend where Indian companies increase their rock phosphate imports from Togo, leveraging spot market purchases to manage costs and ensure supply stability.
Moreover, Indian imports of rock phosphate from Togo have seen a significant increase, with a recorded 1.1 million tons imported for the fiscal year ending March 31, 2024. This reflects a 30% rise from the previous year according to data from the Fertiliser Association of India. Future contracts drawn up with SNPT will include quarterly price negotiations, although details about pricing remain undisclosed.
In conclusion, FACT’s negotiations to secure a long-term supply of rock phosphate from SNPT illustrates the Indian agriculture sector’s proactive approach to stabilize fertilizer imports, amidst rising global prices and supply challenges. The increasing import volume underscores the crucial role of rock phosphate in supporting India’s agricultural productivity.
Original Source: m.economictimes.com
