Indian fertilizer companies ink long-term deal with Saudi Arabia's Ma'aden for DAP supply
In a significant move to bolster bilateral cooperation, Union Minister for Health and Family Welfare and Chemicals and Fertilizers, JP Nadda, recently visited Saudi Arabia from July 11 to 13, 2025. During his visit, the two nations signed a long-term offtake agreement for the annual supply of 3.1 million metric tonnes (MT) of phosphates, primarily Diammonium Phosphate (DAP) and also including Nitrogen, Phosphorus, Sulfur (NPS), starting from the financial year 2025-26.
The visit highlighted India's growing importance as an export destination for Saudi fertilizers. The agreement aims to enhance the annual supply of DAP fertilizer to 3.1 million MT, a significant increase from the 1.9 million MT imported in the financial year 2024-25. This extended supply agreement represents a major strategic step to stabilize and secure India's phosphate fertilizer supply chain for the medium to long term.
The first published date of this news article is 14 Jul 2025, 06:18 IST. The minister visited Maaden's phosphate production facility at Ras Al Khair. The discussions between Minister Nadda and the Saudi Minister of Industry and Mineral Resources explored strategies to strengthen fertilizer trade and production.
A joint working group has been established to support the growing partnership in the fertilizer sector, led by the Secretary of Fertilizers from India and the Vice Minister for Mining Affairs from Saudi Arabia. This group will explore long-term collaboration and strategic planning in the fertilizer sector, and will also focus on developing customized fertilizers tailored for Indian agricultural needs.
The pricing for these shipments will be based on the spot market prices. Both sides have also considered expanding cooperation to include other essential fertilizers such as urea. Mutual investment opportunities were discussed, including the possibility of Indian public sector undertakings investing in Saudi fertilizer ventures.
Saudi interest in exploring investment options in India was also noted. JP Nadda also met the Saudi Vice Minister of Health, Abdulaziz Al-Rumaih, to explore cooperation in health services, digital health, pharmaceuticals, and medical technologies.
The visit concluded with business engagements in Dammam. During his visit, JP Nadda met Prince Abdulaziz bin Salman Al Saud, the Minister of Energy of Saudi Arabia, to discuss strengthening economic ties between the two countries.
This extended supply agreement addresses India's persistent challenge of maintaining adequate DAP fertilizer inventories, especially as exports from China, traditionally a major supplier, have drastically declined in 2025. In addition to Saudi Arabia, India is also sourcing phosphates from Morocco, Russia, and Jordan, though these have not filled the shortfall left by China.
The agreements aim to stabilize India's phosphate fertilizer supply chain, providing a much-needed boost to the agricultural sector. The visit to Saudi Arabia marks a significant step in strengthening the economic ties between the two nations.
[1] The Hindu BusinessLine, July 14, 2025. [2] The Economic Times, July 14, 2025. [3] Business Standard, July 14, 2025. [4] The Times of India, July 14, 2025. [5] Financial Express, July 14, 2025.
The extended supply agreement between India and Saudi Arabia aims to increase the annual supply of DAP fertilizer, highlighting the growing importance of sports (agriculture) in the bilateral cooperation. The joint working group established for this partnership will focus on developing customized fertilizers tailored for Indian agricultural needs.
