India Inks Long-Term Fertilizer Supply Deals with Saudi Arabia

Union Chemicals and Fertilizers minister, JP Nadda, concluded a successful three-day visit to Saudi Arabia from July 11–13, with key outcomes that will significantly enhance India’s fertilizer security and deepen cooperation in healthcare, pharmaceuticals, and strategic investments. Leading a high-level Indian delegation that included senior officials from the Department of Fertilizers and the Ministry of External Affairs, Nadda held wide-ranging discussions in Dammam and Riyadh, underscoring the importance of India-Saudi Arabia strategic relations.

Major Long-Term Fertilizer Supply Agreements Signed

• Saudi mining giant Maaden signed long-term supply agreements with three major Indian fertilizer companies—Indian Potash Limited (IPL), KRIBHCO, and Coromandel International Ltd (CIL).
• The deal secures the supply of 3.1 million metric tons of Diammonium Phosphate (DAP) fertilizer annually for five years, starting 2025–26, with a provision for a further five-year extension by mutual consent.
• This represents a dramatic increase from the current import volumes. In FY 2024–25, India imported 1.9 million metric tons of DAP from Saudi Arabia—a 17% rise over FY 2023–24. The new agreement boosts supply by over 60%, ensuring greater long-term reliability for India’s agricultural sector.
• Calculation: 3.1 million MT for 5 years is roughly 60 Crore KGs imports per year. Average prices for July 2025 is around USD 800 per ton which is roughly INR 68 per KG. Thus from FY26 till FY31, DAP imports broadly can be valued at ~ INR 4000 Crores per year.

Expanding the Scope: Urea, Investments, and R&D

• Both countries expressed a strong interest in expanding cooperation beyond DAP to include other key fertilizers such as urea, enhancing India’s fertilizer resilience. Discussions also explored mutual investment opportunities, including Indian public sector undertakings investing in Saudi Arabia’s fertilizer industry, and reciprocal Saudi investments in Indian projects.
• To pursue these initiatives, a joint working group has been established, led by the secretary (rertilizers) on the Indian side and the Vice Minister for Mining Affairs from Saudi Arabia. The team will coordinate long-term collaboration in fertilizer research, production, and distribution. Further, both sides discussed collaborative research efforts, particularly aimed at India-specific customized and alternative fertilizers to boost agricultural productivity and sustainability.

Strategic Energy and Investment Dialogue

• JP Nadda also met with Prince Abdulaziz bin Salman Al Saud, Saudi Minister of Energy and co-chair of the Economy and Investment Committee of the India-Saudi Strategic Partnership Council.
• The meeting focused on enhancing bilateral economic and investment ties, with a special emphasis on energy cooperation.

Visit to Maaden’s Phosphate Plant

• The Indian delegation visited Maaden’s phosphate production facilities at Ras Al Khair, where Hassan Al Ali, Chairman of Maaden Phosphate, and senior officials welcomed them.
• Saudi Arabia continues to export a significant share of its fertilizers to India, with Maaden actively meeting the country’s growing demand.

Strengthening Strategic Partnership

• The visit concluded on a highly positive note, reinforcing India–Saudi Arabia’s strategic partnership, particularly in critical sectors like fertilizers, energy, and healthcare.
• The long-term DAP supply agreements are expected to significantly improve fertilizer availability in India, boost agricultural productivity, and open new avenues for collaboration in technology, investment, and public health.
• As reported by newsonair.gov.in, by securing these key agreements and expanding the scope of bilateral cooperation, India and Saudi Arabia have taken a decisive step toward a more integrated and resilient economic partnership.

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