Indian Fertilizer Companies Ink Deals to Import 3.1 Million MT of DAP Annually from Saudi Arabia

Three major Indian fertilizer companies—Indian Potash Limited (IPL), Krishak Bharati Cooperative Limited (KRIBHCO), and Coromandel International—have signed long-term agreements with Saudi Arabia’s leading fertilizer producer, Ma’aden, for the annual import of 3.1 million metric tonnes of Diammonium Phosphate (DAP) from 2025–26 for five years. These agreements, with a provision for a further five-year extension through mutual consent, were formalized during a high-level visit by India’s Minister of Chemicals and Fertilizers, JP Nadda, to Dammam and Riyadh from July 11 to 13.

Saudi Arabia plays a critical role in India’s fertilizer supply chain, with Ma’aden being a major supplier. India imported 19.05 lakh metric tonnes (LMT) of DAP from the Kingdom in 2024–25, marking a 17% increase from 16.29 LMT in 2023–24. The primary focus of Minister Nadda’s visit was to strengthen bilateral cooperation in the fields of fertilizers, petrochemicals, and pharmaceuticals. He was accompanied by senior officials from the Department of Fertilizers and the Ministry of External Affairs.

On the final day of the visit, Nadda met with Saudi Minister of Industry and Mineral Resources, Bandar bin Ibrahim Al Khorayef, in Riyadh to discuss mechanisms for enhancing cooperation in the fertilizer, petrochemical, and pharmaceutical sectors. Both ministers also witnessed the signing of the MoUs between Ma’aden and the Indian companies.

The discussions emphasized expanding bilateral fertilizer cooperation beyond DAP to include key products like urea and NPKS (Nitrogen, Phosphorus, Potassium, and Sulphur), ensuring long-term fertilizer security for India. Both sides expressed interest in facilitating mutual investments—encouraging Indian Public Sector Undertakings (PSUs) to invest in the Saudi fertilizer sector and vice versa.

A significant aspect of the discussions was the need for collaborative research, particularly in developing customized and alternative fertilizers suited to Indian agricultural needs. To pursue these efforts, a joint working group has been formed, led by the Secretary (Fertilizers) from India and the Vice Minister for Mining Affairs from Saudi Arabia’s Ministry of Industry and Mineral Resources.

In addition to fertilizer-related engagements, Nadda held a bilateral meeting with Prince Abdulaziz bin Salman Al Saud, Saudi Arabia’s Energy Minister and Co-Chair of the Economy and Investment Committee under the Strategic Partnership Council between the two nations. The discussions focused on enhancing broader economic ties, particularly in strategic sectors such as energy, investments, and industrial cooperation. The Prince hosted a lunch in Nadda’s honor as part of the engagement.

Nadda also met with Saudi Vice Minister of Health, Abdulaziz Al-Rumaih, to explore potential collaboration in healthcare, including medical services, pharmaceuticals, digital health, and knowledge sharing. Both sides recognized the importance of the Health MoU signed during Prime Minister Narendra Modi’s recent visit to Saudi Arabia.

Nadda expressed his appreciation for Saudi Arabia’s support to Indian pilgrims during Haj 2025 and discussed medical arrangements for Haj 2026. During the visit, he also toured Ma’aden’s phosphate production facilities at Ras Al Khair, accompanied by his delegation and hosted by Hassan Al Ali, Chairman of Ma’aden Phosphate.

The visit concluded with a dinner hosted in Nadda’s honor by Abdulaziz bin Abdul Hadi Al Qahtani, Chairman of the Saudi-India Business Council, highlighting the strong and growing economic partnership between India and Saudi Arabia, particularly in the fertilizers sector.