India Inks 3.1Mn Tonne Per Annum Fertiliser Deal With Saudi Arabia As China Curbs Supply

Three Indian companies have signed Long-Term Agreements with the Saudi state-owned mining company Maaden to buy Diammonium Phosphate (DAP) fertiliser during Chemicals and Fertilisers Minister JP Nadda's official tour to the Kingdom of Saudi Arabia. Nadda visited Dammam and Riyadh between July 11 and 13.

The three Indian companies--Indian Potash (IPL), Krishak Bharati Cooperative (KRIBHCO) and Central Insecticides Laboratory (CIL)--will receive the supply of overall enhanced 3.1mn metric tons of DAP fertiliser per annum for five years from 2025-26 onwards with further extension of five years with mutual consent.

"Both sides underscored their commitment to broadening the scope of bilateral relations to include other key fertilisers such as Urea along with DAP, aiming to further ensure India’s fertiliser security," the Ministry of Chemicals and Fertilisers said in a statement.

In addition, a joint team has been set-up led by Secretary (Fertiliser) on the Indian side and the Vice Minister for Mining Affairs in the Ministry of Industry and Mineral Resources on the Saudi side to explore long term collaboration in this sector.

India has imported 1.9mn MT of DAP fertiliser from the Kingdom of Saudi Arabia in FY25, registering a 17% increase of over 1.6mn MT during FY24.

This move came amid rising tensions around China's move to restrict speciality fertilisers to India without actually imposing an official ban. These fertilisers are crucial for boosting yields of high-value crops, such as fruits and vegetables. India imports about 80% of its supplies of these chemicals from China.

India requires nearly 10-11mn tonnes of fertiliser to fulfil its domestic demand each year, with about 60% dependent on imports.

On July 12, Nadda, along with the accompanying delegation, visited Maaden facilities at Ras Al Khair and had a tour of the Phosphate production plant. India is a key export destination for fertilisers from Saudi Arabia, and Maaden is the leading company in this sector in the Kingdom.