FACT Engages in Talks for Long-Term Rock Phosphate Supply from Togo

Fertilisers and Chemicals Travancore (FACT) is negotiating a three-year contract to purchase 250,000 metric tons per year of rock phosphate from Togo’s Societe Nouvelle des Phosphates du Togo (SNPT). This initiative aims to secure stable fertiliser sources amidst rising agricultural demands in India. The agreement includes quarterly price negotiations, enhancing preparedness against market fluctuations.

Fertilisers and Chemicals Travancore (FACT) is currently in negotiations to establish a three-year contract for the purchase of rock phosphate from Togo. This agreement would signify the first long-term fertiliser deal for an Indian company with this African nation, aiming to acquire 250,000 metric tons annually from Societe Nouvelle des Phosphates du Togo (SNPT).

The impetus behind this procurement strategy stems from Indian firms seeking to mitigate the risks associated with price volatility and supply shortages for essential soil nutrients critical to sustaining the nation’s agriculture sector, which constitutes 15% of India’s $2.7 trillion economy. Last month, FACT entered into a non-binding agreement to secure rock phosphate from SNPT, with all contract particulars finalized except for pricing, which will be adjusted quarterly.

India’s imports of rock phosphate from Togo have exhibited a consistent upward trend in recent years, primarily conducted on a spot basis. For instance, during the fiscal year ending March 31, 2024, Indian companies imported approximately 1.1 million tons of rock phosphate from Togo, marking a significant increase of about 30% from the preceding year, as reported by figures curated by the Fertiliser Association of India.

In summary, Fertilisers and Chemicals Travancore is on the verge of finalizing a noteworthy long-term agreement to procure rock phosphate from Togo. This endeavor underscores India’s commitment to securing stable and reliable fertiliser sources amid rising demand within its agricultural sector, which plays a crucial role in the national economy. The deal is poised to ensure continuous supply while addressing the challenges of pricing and availability.

Original Source: manufacturing.economictimes.indiatimes.com