Fertilisers And Chemicals Travancore of India is negotiating a three-year contract to import rock phosphate from Togo, representing the first long-term fertiliser deal between India and Togo. The agreement, involving 250,000 metric tons per year, aims to stabilize supply amid price volatility. Notably, India’s rock phosphate imports from Togo are projected to reach 1.1 million tons in the fiscal year ending March 31, 2024, a 30% increase from the previous year.
Fertilisers And Chemicals Travancore (FACT) of India is currently negotiating to secure a three-year contract to import rock phosphate from the West African nation of Togo. This would represent a significant development as it would be the first long-term fertiliser arrangement between an Indian company and Togo. The proposed agreement aims for an annual procurement of 250,000 metric tons from Societe Nouvelle des Phosphates du Togo (SNPT).
Sources indicate that while FACT and SNPT declined to comment on inquiries concerning the deal, it is expected to include quarterly price negotiations, although all specifics other than pricing have reportedly been settled. Indian agricultural businesses are actively pursuing long-term fertiliser import agreements to manage against erratic price fluctuations and potential shortages of essential soil nutrients.
India’s agricultural sector, which constitutes about 15% of the nation’s $2.7 trillion economy, is increasingly dependent on stable fertiliser supplies. In recent years, imports of rock phosphate from Togo have grown, with companies purchasing commodities on a spot basis. Data shows a notable increase in these imports, reaching 1.1 million tons during the fiscal year ending March 31, 2024, which reflects a 30% rise from the prior year, according to reports from the Fertiliser Association of India.
In summary, FACT is in discussions to secure a long-term import contract for rock phosphate from Togo, aiming to ensure stable supply and pricing for India’s vital agricultural sector. This development highlights the increasing importance of sourcing fertiliser from diverse global suppliers to manage fluctuations in the market. The growth of past imports from Togo underscores the strategic move toward securing consistent agricultural inputs for India’s economy.
Original Source: theprint.in
