India Explores Long-Term Rock Phosphate Deal with Togo’s SNPT

India is negotiating a three-year rock phosphate purchase agreement with Togo’s SNPT to counter price volatility and secure supplies for its agriculture sector, which comprises 15% of the economy. The agreement could include quarterly price negotiations and follows a significant increase in India’s phosphate imports from Togo this fiscal year.

An Indian fertilizer company is reportedly in negotiations to purchase rock phosphate from the Societe Nouvelle des Phosphates du Togo (SNPT) for a duration of three years, according to sources. Both FACT and SNPT did not respond to requests for comments from Reuters regarding this development.

Indian firms are increasingly pursuing long-term fertilizer import agreements to shield themselves against price fluctuations and supply disruptions of vital soil nutrients necessary for the country’s agriculture, which represents 15% of its $2.7 trillion economy. Recently, FACT entered a non-binding agreement to procure rock phosphate from SNPT, as reported by sources.

While pricing details remain unconfirmed, the company intends to include clauses for quarterly price negotiations within the contract. Over recent years, India’s rock phosphate imports from Togo have steadily increased, with transactions primarily conducted on a spot basis.

During the fiscal year ending March 31, 2024, Indian enterprises imported approximately 1.1 million tons of rock phosphate from Togo, marking a 30% increase compared to the prior year, as indicated by data compiled by the Fertiliser Association of India.

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In conclusion, India’s efforts to secure long-term phosphate supplies from Togo reflect a strategic move to mitigate risks associated with price volatility and supply shortages in the fertilizer sector. The anticipated agreement with SNPT symbolizes a growing trend among Indian firms to establish stable import channels as the agriculture sector faces increasing demands. The rise in imports underscores the critical need for reliable sources of essential soil nutrients for the nation’s agricultural productivity.

Original Source: m.economictimes.com