FACT Negotiates Long-Term Rock Phosphate Deal with Togo

Fertilisers and Chemicals Travancore (FACT) is in discussions to finalize a three-year contract with Societe Nouvelle des Phosphates du Togo (SNPT) for the purchase of 250,000 metric tons of rock phosphate annually. This contract represents the first long-term fertiliser deal between an Indian company and Togo. The agreement aims to provide stable supplies amid increasing agricultural demands in India.

India’s Fertilisers and Chemicals Travancore (FACT) is negotiating a three-year contract to purchase 250,000 metric tons of rock phosphate annually from the Societe Nouvelle des Phosphates du Togo (SNPT). This arrangement would represent a significant milestone as it would be the first long-term fertiliser agreement for an Indian firm with Togo.

According to sources, the exact pricing details are still under discussion, but all other contract conditions have been established. The agreement includes a clause for quarterly price renegotiations, emphasizing the importance of adaptability in response to market fluctuations.

Increasingly, Indian firms are pursuing long-term fertiliser import contracts to mitigate price volatility and supply deficiencies affecting the agricultural sector, which constitutes 15% of India’s $2.7 trillion economy. Last month, FACT signed a non-binding agreement with SNPT.

Indian rock phosphate imports from Togo have consistently grown over recent years, especially as previous purchases were made on a spot basis. In the fiscal year ending March 31, 2024, Indian importers acquired approximately 1.1 million tons of rock phosphate from Togo, representing a notable increase of about 30% compared to the prior year, based on data from the Fertiliser Association of India.

In summary, FACT’s potential agreement to secure a steady supply of rock phosphate from Togo could prove beneficial for India’s agricultural needs. This first long-term contract not only highlights the increasing demand for fertiliser imports but also reflects a strategic move towards ensuring stable supplies and prices in a fluctuating market. The growth in Togo’s phosphate exports to India further underscores the strengthening trade relations between the two regions.

Original Source: manufacturing.economictimes.indiatimes.com