Fertilisers And Chemicals Travancore is negotiating a three-year deal to purchase 250,000 metric tons of rock phosphate annually from Togo’s SNPT. This agreement is significant as it would be the first long-term fertiliser contract between an Indian company and Togo. The aim is to secure stable supply against price volatility, with previous imports predominantly conducted on a spot basis, reflecting a strategic shift in sourcing practices.
Fertilisers And Chemicals Travancore (FACT) is in discussions to enter into a three-year agreement to acquire 250,000 metric tons of rock phosphate annually from the Societe Nouvelle des Phosphates du Togo (SNPT). This contract represents a significant milestone as it marks the first long-term fertiliser deal for an Indian company with Togo. The aim of this venture is to diversify supply sources amid increasing demands in India’s agriculture sector, which contributes 15% to the nation’s $2.7 trillion economy.
The negotiations with SNPT are progressing; however, specifics on pricing remain pending, with final details complete aside from monetary terms. The contract includes provisions for quarterly price evaluations to adapt to market conditions. Previously, India’s imports of rock phosphate from Togo were conducted primarily on a spot basis, demonstrating a shift towards more stable, long-term arrangements.
Recent data reveals a notable increase in India’s rock phosphate imports from Togo, with a total of 1.1 million tons imported for the fiscal year ending March 31, 2024, reflecting an approximate 30% increase from the previous year. As Indian firms actively pursue long-term agreements, this initiative is strategically aimed at mitigating price volatility and ensuring a consistent supply of essential soil nutrients for the country’s agricultural needs.
In conclusion, FACT’s potential contract with SNPT represents a significant development in India’s agricultural supply chain, promising increased stability in rock phosphate sourcing. With the contract set to enhance long-term partnerships and address the rising demands of the farming sector, this step indicates a proactive approach towards ensuring food security and sustainability in India’s agriculture.
Original Source: manufacturing.economictimes.indiatimes.com
