FACT Engages in Talks for Rock Phosphate Purchase from Togo

Fertilisers and Chemicals Travancore is in negotiations for a three-year contract to acquire 250,000 metric tonnes of rock phosphate annually from Togo’s SNPT. This marks a significant move towards long-term fertiliser procurement by Indian firms to stabilize supply and pricing in the agricultural sector. Recent data indicates a 30 percent increase in India’s phosphate imports from Togo, reflecting growing reliance on the African nation for essential agricultural resources.

Fertilisers and Chemicals Travancore (FACT) is reportedly negotiating a three-year agreement to procure rock phosphate from Togo in an effort to diversify its supply sources. This arrangement would represent the inaugural long-term fertiliser contract between an Indian company and Togo, with FACT targeting an annual purchase of 250,000 metric tonnes from the Societe Nouvelle des Phosphates du Togo (SNPT).

The sourcing initiative is part of a broader strategy by Indian firms to secure extensive fertiliser import agreements to mitigate risks associated with price fluctuations and supply shortages for vital soil nutrients, which significantly impact India’s agricultural sector, contributing 15 percent to the economy worth $2.7 trillion. FACT has previously entered a non-binding agreement with SNPT to acquire rock phosphate, with details pending on pricing negotiations.

Preliminary aspects of the contract have been resolved, despite the absence of agreed pricing, which will undergo evaluation on a quarterly basis. Notably, India’s imports of rock phosphate from Togo have substantially increased, with the fiscal year ending March 31, 2024, reflecting a total of 1.1 million tonnes imported, marking a 30 percent increase compared to the previous year, as per data from the Fertiliser Association of India.

In conclusion, FACT’s potential three-year agreement to import rock phosphate from Togo signifies a proactive approach by Indian companies to secure stable fertiliser supplies amidst fluctuating market conditions. This collaboration is pivotal for supporting India’s agricultural sector and enhancing food security while responding to rising demand for essential nutrients.

Original Source: www.business-standard.com