Indian fertiliser companies are negotiating to purchase rock phosphate from Togo’s SNPT for three years to secure supply amidst volatility. FACT has signed a non-binding agreement, with quarterly price negotiations included. India’s imports from Togo have increased significantly, demonstrating a shift towards long-term agreements to support agriculture.
Indian fertiliser companies are reportedly engaged in negotiations to purchase rock phosphate from the Societe Nouvelle des Phosphates du Togo (SNPT) for a period of three years. This move aims to secure long-term supply of crucial soil nutrients, mitigating the risks of price volatility and supply shortages within the agricultural sector, which represents 15% of India’s $2.7 trillion economy.
Last month, Fertiliser Association of India (FACT) signed a non-binding agreement to procure rock phosphate from SNPT. The details indicate that the contract will allow for quarterly price negotiations, although specifics regarding pricing remain unresolved. Reports indicate a notable increase in India’s rock phosphate imports from Togo, reaching approximately 1.1 million tons in the fiscal year ending March 31, 2024, marking a 30% year-over-year rise according to the Fertiliser Association of India.
As Indian firms pursue preventive strategies against potential shortages, their commitments to long-term fertiliser import agreements underscore the critical role of reliable nutrient supply in maintaining the sustainability of India’s agricultural productivity.
The ongoing initiatives reflect a shift from short-term spot purchases to sustained sourcing arrangements, pivotal for supporting the agricultural framework in India. Emphasis on securing rock phosphate is geared towards enhancing efficiency and stabilizing agricultural outputs amidst market fluctuations.
In summary, Indian fertiliser enterprises are proactively seeking to secure long-term agreements for rock phosphate imports from Togo, primarily through a contract with SNPT aiming to navigate the challenges of price volatility and supply interruptions. With imports surging significantly over recent years, this strategy underscores the essential nature of stable nutrient supply in bolstering India’s agricultural sector and overall economic growth.
Original Source: m.economictimes.com
