FACT in Negotiations for Landmark Phosphate Import Agreement with Togo

India’s Fertilisers and Chemicals Travancore is in discussions to secure a three-year contract to purchase 250,000 metric tons of rock phosphate annually from Togo’s Societe Nouvelle des Phosphates du Togo. This deal, which marks the first long-term fertiliser agreement between an Indian company and Togo, reflects efforts to stabilize supply and pricing amid rising demand in India’s agriculture sector.

India’s Fertilisers and Chemicals Travancore (FACT) is currently negotiating a three-year contract to acquire rock phosphate from Togo, as informed by three sources with direct knowledge of the negotiations. This would represent the initial long-term fertiliser agreement between an Indian company and Togo, with FACT intending to purchase 250,000 metric tons annually from Societe Nouvelle des Phosphates du Togo (SNPT).

FACT reportedly recently finalized a non-binding agreement with SNPT regarding the procurement of rock phosphate, with the exception of the pricing details, which are still being discussed, including provisions for quarterly price negotiations. There has been a growing interest among Indian companies to engage in long-term import agreements for fertiliser to protect against market fluctuations and potential supply shortages that can affect the agriculture sector, which represents 15% of India’s $2.7 trillion economy.

Historically, India’s imports of rock phosphate from Togo have increased, predominantly on a spot basis. In the fiscal year concluding on March 31, 2024, Indian firms imported approximately 1.1 million tons from Togo, marking a 30% increase from the preceding year, according to data collected by the Fertiliser Association of India. The overall goal of these agreements is to secure consistent and reliable sources of essential soil nutrients for India’s agricultural needs.

In summary, FACT is progressing towards a long-term agreement to import significant quantities of rock phosphate from Togo, marking a notable development in India’s fertiliser sourcing strategy. This initiative aims to stabilize supply and pricing in response to the challenges faced by the agricultural industry, which is integral to the nation’s economy. The increasing trend in phosphate imports underscores the urgency for sustainable procurement practices within the agricultural sector.

Original Source: theprint.in