FACT, an Indian fertiliser company, is negotiating a three-year contract to purchase rock phosphate from Togo, marking a significant step in diversifying its supply sources to secure fertilizer imports amid price volatility.
India’s Fertilisers and Chemicals Travancore (FACT) is reportedly negotiating a three-year agreement to acquire rock phosphate from Togo, aiming to diversify its supply sources. This arrangement would represent the first long-term fertilizer agreement for an Indian company with Togo, involving an annual purchase of 250,000 metric tons from the Societe Nouvelle des Phosphates du Togo (SNPT).
Sources indicate that although the price details remain undisclosed, all other contractual elements have been finalized, featuring provisions for quarterly price negotiations. Presently, FACT and SNPT have not publicly commented on this development.
Indian enterprises are increasingly pursuing long-term fertilizer import contracts in response to price fluctuations and potential supply shortages that could impact the agricultural sector, constituting 15% of India’s $2.7 trillion economy. Notably, India’s imports of rock phosphate from Togo have increased significantly, with purchases reaching 1.1 million tons by the fiscal year ending March 31, 2024, a 30% rise year-on-year, according to Fertiliser Association of India data.
In summary, FACT’s potential agreement to procure rock phosphate from Togo highlights India’s strategic efforts to secure stable fertilizer supplies amid rising demand and price instability. The growing import of rock phosphate from Togo signifies a notable shift in procurement strategies, aimed at supporting the agricultural sector within India’s economy.
Original Source: theprint.in
