India–Saudi Fertilizer Agreement for DAP Imports

Three major Indian fertilizer firms—Indian Potash Ltd (IPL), KRIBHCO, and Coromandel International—have signed a five-year agreement with Saudi Arabia’s Ma’aden to import 3.1 million metric tonnes (MMT) of DAP fertilizer annually starting FY 2025–26.

Key Highlights of the Agreement

• Nature of Agreement:
  • Long-term supply pact to secure Di-Ammonium Phosphate (DAP) imports.
• Parties Involved:
  • Indian Companies: IPL, KRIBHCO, Coromandel
  • Saudi Company: Ma’aden (Saudi Arabian Mining Company)
• Duration:
  • Five years (FY 2025–30), extendable by mutual consent.
• Volume Commitment:
  • 3.1 MMT per annum of DAP—30 Lakh Metric Tonnes (LMT) total over five years.

Strategic Features

• Supply Security:
  • Guarantees long-term DAP availability for Indian farmers.
• Joint Research Collaboration:
  • Includes India-specific R&D for alternative and customized fertilizers to improve soil health and crop productivity.
• Bilateral Investment Facilitation:
  • Explores Indian PSU investments in Saudi mining & fertilizer sectors and reciprocal Saudi investments in India’s agri-inputs ecosystem.
• Policy Dialogue Platform:
  • Bilateral team created for cooperation on fertilizer policy, trade logistics, and mineral sourcing.

Significance for India

• Fertilizer Security Backbone:
  • DAP is a crucial component for India’s nutrient-balanced agriculture. A stable supply ensures food security and price stability.
• Reduced Import Volatility:
  • Provides predictable access to fertilizer imports amidst global supply disruptions and geopolitical risks.
• Boosts Strategic Ties with Saudi Arabia:
  • Strengthens India’s engagement with Saudi Arabia beyond energy—towards agricultural and mineral cooperation.
• Custom Fertilizer Innovation:
  • Supports region-specific fertilizer development for India’s diverse agro-climatic zones.

The Indian Express