FACT Negotiates Long-Term Rock Phosphate Purchase from Togo

India’s Fertilisers And Chemicals Travancore is in discussions to secure a three-year contract to import 250,000 metric tons of rock phosphate annually from Togo’s Societe Nouvelle des Phosphates du Togo. The initiative aims to mitigate supply vulnerabilities in India’s agriculture sector. FACT aims to finalize pricing details, while rock phosphate imports from Togo have surged significantly in recent years.

Fertilisers And Chemicals Travancore (FACT) of India is currently negotiating a three-year agreement to purchase rock phosphate from Togo. According to sources, this deal would be the first of its kind for an Indian company with the African nation, aiming to acquire 250,000 metric tons annually from Societe Nouvelle des Phosphates du Togo (SNPT).

The intention behind this move is to diversify supply sources for rock phosphate, as demand in India’s agriculture sector remains significant, accounting for 15% of the country’s $2.7 trillion economy. Recent reports indicate that Indian firms are increasingly focused on establishing long-term contracts to mitigate risks associated with price swings and supply shortages of essential soil nutrients.

In addition, FACT recently finalized a non-binding agreement for the purchase of rock phosphate from SNPT. While specific pricing details remain unresolved, there exists a provision for quarterly negotiations regarding pricing. Notably, India’s imports of rock phosphate from Togo have been on the rise, particularly via spot purchases. In the fiscal year ending March 31, 2024, Indian importations from Togo are anticipated to reach approximately 1.1 million tons, marking a 30% increase from the previous year, data from the Fertiliser Association of India reveals.

In summary, FACT is progressing towards signing a pivotal long-term contract for the purchase of rock phosphate from Togo, marking a significant step for Indian firms in securing stable fertilizer supplies. This contract aims to counter fluctuations in pricing and ensure a steady provision of soil nutrients pivotal for the agricultural sector, which plays a crucial role in India’s economy. The rising trend in imports highlighted this growing dependence on Togo as a key supplier.

Original Source: theprint.in