FACT plans three-year rock phosphate deal with Togo

India’s Fertilisers and Chemicals Travancore (FACT) is in discussions to secure a three-year contract to purchase rock phosphate from Togo, marking the first long-term fertiliser supply agreement between an Indian company and the African nation, sources familiar with the matter revealed.

Under the proposed deal, FACT aims to procure 250,000 metric tons of rock phosphate annually from Togo’s Societe Nouvelle des Phosphates du Togo (SNPT) for three years. The agreement, which Is in its final stages, includes provisions for quarterly price negotiations, with all details except pricing already settled.

This move aligns with India’s broader strategy to secure stable fertiliser imports and mitigate risks associated with price volatility and supply chain disruptions. The country’s agriculture sector, which contributes 15% to its $2.7 trillion economy, heavily depends on such raw materials.

Last month, FACT signed a non-binding agreement with SNPT, signaling its intent to move forward with the deal. While both companies have yet to comment on the development, industry data shows that India’s imports of rock phosphate from Togo have grown steadily. In the fiscal year ending March 31, 2024, Indian firms imported 1.1 million tons of rock phosphate from Togo, marking a 30% increase from the previous year.

If finalised, the agreement would strengthen India’s fertiliser supply chain and deepen trade ties with Togo in the critical agricultural sector.

Reuters/Patience Ameh