India’s FACT aims to sign a three-year deal to import 250,000 tons of rock phosphate annually from Togo’s SNPT. This marks an important step in securing long-term fertiliser supplies, amidst rising demand due to volatility in the agricultural sector. Current negotiations include quarterly pricing agreements, reflecting a strategic shift towards stable sourcing for India’s agriculture needs.
India’s Fertilisers and Chemicals Travancore (FACT) is negotiating a three-year agreement to purchase 250,000 metric tons annually of rock phosphate from Societe Nouvelle des Phosphates du Togo (SNPT). This deal represents the first long-term commitment by an Indian firm to source fertiliser from Togo, aiming to diversify supply sources. The discussions involve provisions for quarterly price negotiations, although specific pricing details remain to be settled, as confirmed by well-informed sources.
The initiative stems from the need for Indian companies to establish long-term fertiliser import contracts to mitigate the risks associated with price fluctuations and supply shortages in the agriculture sector, which constitutes approximately 15% of India’s $2.7 trillion economy. In the previous fiscal year, India’s imports of rock phosphate from Togo amounted to around 1.1 million tons, reflecting a 30% increase from the prior year. Historically, these imports have been conducted on a spot basis, but a shift to long-term agreements illustrates the growing demand for stability in this segment.
In summary, FACT’s proposed contract with SNPT signals a significant move towards establishing reliable and sustainable sources of rock phosphate for Indian agriculture. As Indian companies increasingly seek long-term deals to counter price volatility, this agreement could bolster the agricultural sector’s resource availability while contributing positively to Togo’s economy.
Original Source: manufacturing.economictimes.indiatimes.com
