India’s FACT in Negotiations for Long-Term Rock Phosphate Supply from Togo

Indian fertiliser company FACT is negotiating a three-year contract to buy rock phosphate from Togo’s SNPT. This move aims to stabilize supply and pricing in response to market volatility. Rock phosphate imports from Togo have surged significantly, marking a strategic shift towards long-term supply agreements amidst rising agricultural demand.

Indian fertiliser company Fertilisers and Chemicals Travancore (FACT) is in discussions to secure a long-term agreement to purchase rock phosphate from the Societe Nouvelle des Phosphates du Togo (SNPT). The discussions aim to lock in the supply for three years, reflecting the Indian firms’ proactive strategy to mitigate the risks associated with price fluctuations and shortages critical to the agricultural sector, which constitutes 15% of India’s $2.7 trillion economy.

In recent developments, FACT has signed a non-binding agreement with SNPT for the procurement of rock phosphate. This strategic initiative highlights an increasing trend among Indian companies to pursue long-term fertiliser import contracts. The agreement includes a clause for quarterly price negotiations, ensuring a degree of flexibility amidst market volatility.

Furthermore, Indian imports of rock phosphate from Togo have consistently increased, illustrating a shift towards long-term supply agreements rather than relying solely on spot purchases. Data from the Fertiliser Association of India indicates that for the fiscal year ending March 31, 2024, Indian firms imported approximately 1.1 million tons of rock phosphate from Togo, reflecting a 30% rise from the previous fiscal year. This trend underscores the growing dependence on Togo as a key supplier for India’s fertiliser needs.

Fertilisers and Chemicals Travancore is actively negotiating a long-term purchase agreement for rock phosphate from Togo, a strategy aimed at stabilizing supply and prices within the agricultural sector. The rise in imports from Togo indicates a shift towards securing reliable sources as domestic demand for fertilisers continues. Such moves are indicative of the Indian fertiliser industry’s efforts to enhance resilience against market fluctuations.

Original Source: m.economictimes.com