Indian fertiliser companies IPL, KRIBHCO and CIL have signed an agreement with Saudi Arabian mining company Maaden for supply of 3.1 million MT of DAP fertiliser per annum for five years beginning this fiscal, with provision for extension of five years with mutual consent.
This agreement was signed in the presence of chemicals and fertilisers minister JP Nadda, who is on an official visit to Saudi Arabia.
India is facing a shortage of DAP (di-ammonium phosphate)-the second most used fertiliser after urea-as China has imposed restrictions on export of phosphate, a key ingredient for DAP, to India. This has affected the production of DAP in the country.
The agreement will help in increasing the availability of the crucial fertiliser to Indian farmers.
A shortage of DAP from the beginning of the ongoing kharif season can affect crop production as the fertiliser is used right after sowing.
China has also stopped the shipment of speciality fertilisers from June 26. Speciality fertilisers are used to increase the yield of fruits, vegetables and other remunerative crops.
During the visit, Nadda held discussions with the Saudi Minister of Industry and Mineral Resources, Bandar bin Ibrahim Al Khorayef, on facilitating mutual investments, with a focus on exploring opportunities for Indian public sector undertakings (PSUs) to invest in the Saudi fertiliser sector, and reciprocally, Saudi investments in India.
Both countries agreed on 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.
In FY25, India's imports of DAP from the Kingdom of Saudi Arabia stood at 1.905 MMT, reflecting around 17% increase over the 1.629 MMT imported in FY24.
This agreement was signed in the presence of chemicals and fertilisers minister JP Nadda, who is on an official visit to Saudi Arabia.
India is facing a shortage of DAP (di-ammonium phosphate)-the second most used fertiliser after urea-as China has imposed restrictions on export of phosphate, a key ingredient for DAP, to India. This has affected the production of DAP in the country.
The agreement will help in increasing the availability of the crucial fertiliser to Indian farmers.
A shortage of DAP from the beginning of the ongoing kharif season can affect crop production as the fertiliser is used right after sowing.
China has also stopped the shipment of speciality fertilisers from June 26. Speciality fertilisers are used to increase the yield of fruits, vegetables and other remunerative crops.
During the visit, Nadda held discussions with the Saudi Minister of Industry and Mineral Resources, Bandar bin Ibrahim Al Khorayef, on facilitating mutual investments, with a focus on exploring opportunities for Indian public sector undertakings (PSUs) to invest in the Saudi fertiliser sector, and reciprocally, Saudi investments in India.
Both countries agreed on 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.
In FY25, India's imports of DAP from the Kingdom of Saudi Arabia stood at 1.905 MMT, reflecting around 17% increase over the 1.629 MMT imported in FY24.
