An Indian fertiliser company is negotiating a three-year deal to buy rock phosphate from Togo’s SNPT. This is part of a broader strategy by Indian firms to secure stable fertiliser imports amidst agricultural demands. Imports from Togo are expected to grow to 1.1 million tons by March 2024, a 30% increase from last year.
Reports suggest that an Indian fertiliser company is currently in negotiations to acquire rock phosphate from the Societe Nouvelle des Phosphates du Togo (SNPT) for a duration of three years. This move aligns with Indian firms’ strategy to secure long-term contracts for fertiliser imports, thereby mitigating risks associated with price fluctuations and supply shortages essential for the agriculture sector, which constitutes 15% of India’s $2.7 trillion economy.
Additionally, the Fertiliser Association of India has indicated that in the fiscal year ending March 31, 2024, Indian companies are projected to import approximately 1.1 million tons of rock phosphate from Togo, marking a 30% increase from the previous year. Recently, the Indian fertiliser company finalized a non-binding agreement with SNPT for future purchases, with plans for quarterly price negotiations included in the contract.
To date, both the Indian company and SNPT have not responded to inquiries from Reuters for a statement regarding the negotiations. The increase in imports from Togo reflects a growing need for stability in the supply of soil nutrients, ensuring that India’s vast agricultural requirements are met efficiently.
In summary, an Indian fertiliser company is negotiating a significant purchase of rock phosphate from Togo to ensure stable supply and pricing in the face of growing agricultural demands. The projected increase in imports from Togo signifies a strategic approach by Indian firms to bolster their supply chains and safeguard against potential market volatility.
Original Source: m.economictimes.com
