Fertilisers and Chemicals Travancore Negotiates Long-Term Phosphate Deal with Togo
Fertilisers and Chemicals Travancore is negotiating a three-year contract to purchase 250,000 metric tonnes of rock phosphate annually from Togo, marking a significant step for Indian firms seeking stable fertiliser supplies. The deal includes provisions for quarterly price negotiations and follows a trend of increased rock phosphate imports from Togo, with Indian firms aiming to secure long-term contracts to counter price volatility in the fertiliser market.
Fertilisers and Chemicals Travancore (FACT) is currently engaged in discussions to secure a three-year contract for the purchase of rock phosphate from Togo, according to sources familiar with the matter. This initiative aims to diversify sourcing options for the Indian firm, with plans to obtain 250,000 metric tonnes annually from Societe Nouvelle des Phosphates du Togo (SNPT). Should this agreement be realized, it would represent the first long-term fertiliser contract between an Indian company and Togo.
As India grapples with the challenges of price fluctuations and occasional supply shortages in its agriculture sector, which constitutes 15 percent of its $2.7 trillion economy, Indian firms are increasingly seeking long-term agreements for fertiliser imports. Last month, FACT reportedly entered into a non-binding agreement with SNPT to acquire rock phosphate, indicating progress toward formalizing this contract.
While the specifics of pricing remain undetermined, it has been confirmed that all other contractual details are settled, including provisions for quarterly price negotiations. There has been a noticeable increase in India’s import of rock phosphate from Togo, with a total of 1.1 million tonnes imported in the fiscal year ending March 31, 2024. This figure signifies a 30 percent rise from the previous year, as reported by the Fertiliser Association of India.
The recent trend indicates that Indian companies are shifting toward securing predictable supply chains amid ongoing global disruptions, further emphasizing the importance of stable fertiliser imports for sustaining agricultural productivity in India.
Fertilisers and Chemicals Travancore is poised to enter a significant long-term contract for rock phosphate from Togo, which would enhance its supply stability amidst fluctuating global prices. This initiative reflects a broader strategy among Indian firms to mitigate risks associated with fertiliser supply, thereby supporting the needs of the agricultural sector. As the industry adapts to growing demands and market conditions, securing these international agreements will be crucial for future sustainability.
Original Source: www.business-standard.com
