Fertilisers And Chemicals Travancore (FACT) is negotiating a three-year deal to purchase 250,000 metric tons of rock phosphate annually from Togo. This agreement aims to secure long-term supply chains essential for India’s agricultural sector amid rising fertilizer prices. The deal would be the first of its kind between an Indian firm and Togo, following increased imports in recent years.
Fertilisers And Chemicals Travancore (FACT) is in negotiations to establish a three-year contract to purchase rock phosphate from Togo. This potential agreement would represent the first long-term fertiliser deal between an Indian company and Togo, with FACT aiming to acquire 250,000 metric tons annually from Societe Nouvelle des Phosphates du Togo (SNPT).
The negotiations aim to secure additional supply sources for the Indian agricultural sector, which is vital in the context of rising fertilizer prices and supply chain stability. The agricultural sector contributes significantly to India’s economy, accounting for 15% of its $2.7 trillion economic output.
According to sources, FACT has previously signed a non-binding agreement for the phosphate acquisition, and all contractual details, excluding pricing, have reportedly been settled. The agreement allows for quarterly price discussions to adapt to market fluctuations.
India’s rock phosphate imports from Togo have been increasing, with over 1.1 million tons purchased in the last fiscal year, representing a 30% rise from the previous year.
Overall, this potential deal could enhance India’s access to essential soil nutrients, positioning FACT strategically for future demands and ensuring agricultural resilience.
In summary, FACT’s potential agreement to purchase rock phosphate from Togo marks a significant development in India’s agricultural supply strategy. With a focus on securing long-term supplies amidst market volatility, FACT’s negotiations could substantially benefit the agricultural sector, which is integral to the Indian economy. As pricing details remain to be finalized, this arrangement exemplifies proactive measures to strengthen India’s fertiliser imports.
Original Source: manufacturing.economictimes.indiatimes.com
