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India Signs 5‑Year Long‑Term Fertilizer Deal with Saudi Arabia for 3.1 Mn Tonnes DAP.

International | Dated: 15 Jul 2025

During his visit to Riyadh and Dammam from 11–13 July 2025, Union Minister J.P. Nadda, overseeing Chemicals and Fertilizers, signed landmark long‑term agreements with Saudi state‑owned mining firm Ma’aden and Indian companies Indian Potash Ltd (IPL), KRIBHCO, Coromandel, and Coal India Ltd (CIL).

🎯 Key Highlights:

  • - The pacts ensure the annual supply of 3.1 million metric tonnes of Diammonium Phosphate (DAP) fertiliser over five years from fiscal year 2025–26, with an option for a five‑year extension.
  • - This significant increase in DAP imports follows China’s recent reduction in phosphate exports—a strategic shift that impacted global availability. The new Saudi deal boosts India's guaranteed supply, offering much-needed supply security for its 10–11 million tonnes annual fertiliser requirement and mitigating dependence on a single supplier.

💡 Other Important Facts:

  • (i) India’s DAP imports from Saudi Arabia reached 1.9 million tonnes in 2024–25, up 17% from the previous year.
  • (ii) With the new deal, the total import volume is set to rise to 3.1 million tonnes annually, stabilizing national inventory and supporting the government's Nutrient Based Subsidy (NBS) policy.
  • (iii) The agreements also include plans for joint research into India‑specific, customized fertilisers and open avenues for reciprocal investments—allowing Indian public sector undertakings (PSUs) to invest in Saudi phosphate projects and Saudi investors to enter India’s fertiliser sector. A bilateral working group, led by India’s Fertiliser Secretary and Saudi’s Vice‑Minister for Mining, will drive these initiatives.

📚 Test Your Knowledge:

With which country has India recently signed a 5-year fertilizer supply agreement in July 2025?

Correct Answer: Saudi Arabia

🚀 Quick Recap:

About Saudi Arabia

  • Capital: Riyadh
  • Currency: Saudi Riyal