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15 Jul, 2025
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India Signs 5-Year DAP Fertiliser Deal with Saudi Arabia Amid Chinese Export Restrictions
@Source: knnindia.co.in
New Delhi, Jul 15 (KNN) India has secured a major deal with Saudi Arabia’s Ma'aden, ensuring a steady supply of DAP (di-ammonium phosphate) fertilisers for the next five years. This move comes as China continues to limit its fertiliser exports, impacting global supply chains. Under the agreement, Indian public sector companies like Indian Potash Ltd (IPL), Coromandel International, and Paradeep Phosphates will receive a guaranteed supply of DAP and other key fertilisers from Ma’aden. While the exact volume hasn’t been disclosed, the Ministry of Chemicals and Fertilisers stated that the deal provides long-term price stability and supply assurance, which is crucial for Indian farmers. DAP is the second-most used fertiliser in India after urea and plays a key role in enhancing crop yields. India currently imports over 60% of its DAP needs, with China and Saudi Arabia among the top suppliers. However, due to China’s ongoing export restrictions, prices have been volatile, prompting India to diversify and secure stable sources. This partnership is part of India’s broader strategy to boost fertiliser security by forming long-term agreements and joint ventures abroad. It also aligns with the government’s vision to reduce dependency on any single country and ensure uninterrupted supply during global disruptions. The deal also supports the government's focus on reducing the subsidy burden by stabilising import prices. In the fiscal year 2022-23, India spent a record Rs 2.55 lakh crore on fertiliser subsidies. By strengthening ties with Saudi Arabia, India is working toward long-term food security and agricultural stability, ensuring that farmers have timely and affordable access to essential nutrients. (KNN Bureau)
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