India’s Fertilisers And Chemicals Travancore is in talks to sign a three-year contract to buy rock phosphate from Togo, to widen its supply sources, three people with direct knowledge of the matter said.
In what would mark an Indian company’s first long-term fertiliser deal with the African nation, FACT is looking to buy 250,000 metric tons per year of rock phosphate for three years from Societe Nouvelle des Phosphates du Togo (SNPT), the sources said.
FACT and SNPT did not respond to Reuters email seeking comments.
Indian firms are keen to sign long-term fertiliser import deals to hedge against price volatility and supply shortages of soil nutrients needed for the country’s huge agriculture sector, which accounts for 15% of $2.7 trillion economy.
FACT last month signed a non-binding agreement to buy rock phosphate from SNPT, the sources said.
All details except pricing have been finalised, they said, adding that the contract has a provision for quarterly price negotiations.
India’s rock phosphate imports from Togo have risen steadily over the past few years, with purchases made on a spot basis.
In the fiscal year to March 31, 2024, Indian companies imported a total 1.1 million tons of rock phosphate from Togo, up about 30% from the previous year, data compiled by Fertiliser Association of Indian shows.