In a major move to secure its fertilizer supply, India has signed long-term agreements with Saudi Arabia’s Ma’aden to increase the supply of diammonium phosphate (DAP) fertilizer.
Three Indian companies—Indian Potash Ltd, Krishak Bharati Cooperative Ltd (Kribhco), and Central Insecticides Limited—inked the agreements during a visit by Union Minister J.P. Nadda to Saudi Arabia.
The agreements will ensure the supply of 3.1 million tonnes of DAP annually for five years, starting from FY26. They can be extended for another five years with mutual consent. The deals were confirmed in an official statement from the Ministry of Chemicals and Fertilizers on Sunday.
Why DAP Matters
India’s annual DAP requirement stands at 10–11 million tonnes, but around 60% of this is met through imports. DAP is especially important because the government provides a subsidy on it under the Nutrient Based Subsidy (NBS) scheme, making its availability critical for both farmers and the economy.
India imported 1.9 million tonnes of DAP from Saudi Arabia in FY25, a 17% increase over the 1.6 million tonnes imported in FY24.
Strengthening India–Saudi Ties
During his visit, Minister Nadda met with Bandar bin Ibrahim Al Khorayef, Saudi Arabia’s Minister of Industry and Mineral Resources. They discussed expanding cooperation in fertilizers, petrochemicals, and pharmaceuticals.
India’s Fertilizer Secretary and Saudi Arabia’s Vice-Minister for Mining Affairs also formed a joint team to explore long-term partnerships in the fertilizer sector.
Broader Cooperation in Health and Pharma
In addition to fertilizer talks, Minister Nadda met with the Saudi Health Minister to strengthen cooperation in healthcare services, pharmaceuticals, digital health, and knowledge exchange.
This visit builds on Prime Minister Narendra Modi’s April 2025 trip to Saudi Arabia, during which both countries extended a memorandum of understanding on medical product regulation for another five years. This agreement is between the Saudi Food and Drug Authority and India’s Central Drugs Standard Control Organization (CDSCO).
