An Indian fertiliser company is in talks to purchase rock phosphate from Togo’s SNPT for three years. This move aims to secure supply and hedge against price fluctuations in the agricultural sector, which is vital to India’s economy. The agreement allows for quarterly price negotiations and reflects an increase in imports from Togo.
Sources indicate that an Indian fertiliser company is negotiating a long-term agreement to purchase rock phosphate from Societe Nouvelle des Phosphates du Togo (SNPT) for a duration of three years. The Fertiliser Association of India (FACT) signed a non-binding agreement last month, aiming to stabilize supplies amid fluctuating prices of soil nutrients critical for the agriculture sector, which constitutes 15% of India’s $2.7 trillion economy.
Indian firms are increasingly pursuing long-term fertiliser import contracts as a strategy to mitigate the impacts of price volatility and supply shortages. As part of this effort, details of the contract with SNPT, allowing for quarterly price negotiations, have been finalized, except for pricing.
Recent data shows that India’s imports of rock phosphate from Togo have seen a significant increase, with the total reaching 1.1 million tons in the fiscal year ending March 31, 2024, reflecting a 30% rise from the previous year. These imports have primarily been conducted on a spot basis in recent years, highlighting the growing dependency on Togo as a source for vital agricultural inputs.
The negotiations between Indian fertiliser firms and Togo’s SNPT signify a strategic move to ensure a stable supply of rock phosphate amidst fluctuating market conditions. Increasing imports from Togo highlight the importance of long-term partnerships to support India’s substantial agricultural sector, which plays a critical role in the nation’s economy.
Original Source: m.economictimes.com
