Fertilisers and Chemicals Travancore is negotiating a three-year contract to buy 250,000 metric tonnes of rock phosphate annually from Togo, marking a first for Indian firms. The deal aims to stabilize supply amid fluctuating prices in the agriculture sector. In the fiscal year 2024, imports are expected to rise significantly, showcasing India’s increasing reliance on Togo for rock phosphate.
Fertilisers and Chemicals Travancore (FACT) is currently negotiating a three-year agreement to procure rock phosphate from Togo. This development marks the first long-term fertiliser contract for an Indian firm with Togo, involving the acquisition of 250,000 metric tonnes annually from Societe Nouvelle des Phosphates du Togo (SNPT). Such agreements are crucial to diversifying supply sources.
Sources indicate that the deal includes a clause for quarterly price negotiations, though details concerning pricing remain unresolved. The agreement is a strategic move by Indian firms, as they seek to secure long-term fertiliser import contracts to mitigate risks associated with price fluctuations and potential shortages of essential soil nutrients vital for India’s expansive agricultural sector, which constitutes 15 percent of the $2.7 trillion economy.
Historically, India’s imports of rock phosphate from Togo have seen a consistent increase, with products typically acquired on a spot market basis. In the fiscal year ending March 31, 2024, Indian firms are projected to import approximately 1.1 million tonnes of rock phosphate from Togo, reflecting a 30 percent increase compared to the previous year, as documented by the Fertiliser Association of India.
In conclusion, Fertilisers and Chemicals Travancore’s negotiations for a long-term contract to acquire rock phosphate from Togo underscore the importance of securing stable fertiliser supplies. This strategic move aims to address price volatility in the agricultural sector and ensure a consistent source of essential nutrients for India’s vast farming industry. The anticipated agreement could significantly enhance India’s fertiliser import framework as it ramps up its procurement from Togo.
Original Source: www.business-standard.com
