Fertilisers And Chemicals Travancore in Talks for Rock Phosphate Deal with Togo

Fertilisers And Chemicals Travancore is negotiating a three-year contract to procure 250,000 metric tonnes of rock phosphate annually from Togo’s SNPT. This initiative aims to bolster india’s fertilizer supply amidst rising import demands, with a focus on long-term agreements to counteract price swings. Imports from Togo have already seen a significant increase over recent years.

Fertilisers And Chemicals Travancore (FACT) of India is currently negotiating a three-year agreement to purchase rock phosphate from Togo. This potential arrangement aims to diversify its supply sources for fertilizer production. If finalized, it would mark the first long-term contract between an Indian company and Togo, involving the acquisition of 250,000 metric tonnes of rock phosphate annually from Societe Nouvelle des Phosphates du Togo (SNPT).

Both FACT and SNPT have not yet provided any comments regarding this development. Indian businesses, including FACT, are interested in securing long-term agreements for fertilizer imports to mitigate risks associated with price fluctuations and supply shortages of essential nutrients for the agricultural sector, which contributes significantly to India’s $2.7 trillion economy.

Recently, FACT entered into a non-binding agreement with SNPT for the rock phosphate supply, with most details finalized, except for pricing. The contract includes provisions for quarterly price negotiations, highlighting the importance of stability in supply and budgeting for stakeholder investments.

India’s imports of rock phosphate from Togo have increased consistently over recent years, primarily through spot purchases. In the fiscal year ending March 31, 2024, Indian firms imported approximately 1.1 million tonnes of rock phosphate from Togo, demonstrating a 30 percent increase from the previous year, as indicated by data from the Fertiliser Association of India.

In conclusion, Fertilisers And Chemicals Travancore’s initiative to secure a long-term rock phosphate supply from Togo is a strategic move to enhance its resource base in an increasingly volatile market. This contract, if finalized, will not only support India’s agricultural sector but also reflect a growing trend among Indian firms to establish stable international supply chains.

Original Source: www.business-standard.com

About Liam Nguyen

Liam Nguyen is an insightful tech journalist with over ten years of experience exploring the intersection of technology and society. A graduate of MIT, Liam's articles offer critical perspectives on innovation and its implications for everyday life. He has contributed to leading tech magazines and online platforms, making him a respected name in the industry.

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