India Signs Long-Term Fertilizer Supply Agreements with Saudi Arabia

Union Minister for Health and Family Welfare and Chemicals and Fertilizers JP Nadda concluded his three-day visit to Saudi Arabia, securing crucial agreements that will significantly enhance India’s fertilizer supply chain and strengthen bilateral cooperation in health and pharmaceutical sectors.

 

The visit, which took place from July 11-13 in Dammam and Riyadh, focused primarily on enhancing bilateral cooperation between India and Saudi Arabia in chemicals and fertilizers. Nadda led a high-level delegation that included the Secretary and other senior officials from the Department of Fertilizers and Ministry of External Affairs.

 

During discussions with Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim Al Khorayef in Riyadh, both ministers witnessed the signing of long-term agreements between Maaden and Indian companies including IPL, KRIBHCO, and CIL. These agreements will supply an enhanced 3.1 million metric tons of Diammonium



Phosphate fertilizer per annum for five years from 2025-26 onwards, with provision for further extension of five years with mutual consent.

 

The agreements represent a substantial increase from current supply levels. India’s imports of DAP fertilizer from Saudi Arabia totaled 1.9 million metric tons in 2024-25, reflecting a 17 percent increase over the 1.6 million metric tons imported during FY 2023-24. The new agreements will boost this supply to 3.1 million metric tons from the upcoming fiscal year.

 

Both sides emphasized their commitment to broadening bilateral relations to include other key fertilizers such as Urea along with DAP, aiming to further ensure India’s fertilizer security. Discussions also covered facilitating mutual investments, with focus on exploring opportunities for Indian Public Sector Undertakings to invest in the Saudi fertilizer sector and reciprocal Saudi investments in India.