India signed a landmark five-year agreement with Saudi Arabia’s Ma’aden, securing a steady supply of di-ammonium phosphate (DAP) and other key fertilizers amid tightening global supplies. This move comes as China continues to restrict fertiliser exports, prompting India to strengthen its strategic sourcing partnerships.
Long-Term Stability for Indian Farmers
Under the deal, Indian Potash Ltd (IPL), Coromandel International, and Paradeep Phosphates – all public sector fertilizer importers, will receive assured supplies of DAP and other nutrients from Ma’aden. The ministry of chemicals and fertilisers emphasized that the agreement ensures price stability and reliable availability for Indian farmers. DAP, India’s second-most consumed fertiliser after urea, is critical for enhancing crop productivity. With India importing over 60% of its DAP requirements, ensuring consistent supply is vital to maintaining food security and rural incomes.
Responding to Chinese Export Curbs
China’s ongoing export restrictions have disrupted global fertilizer markets and triggered sharp price volatility. India, historically dependent on both China and Saudi Arabia for DAP imports, has responded by diversifying sources and securing long-term deals to insulate itself from global shocks. The agreement with Saudi Arabia is a key component of that strategy, providing a buffer against market fluctuations and ensuring timely supply during peak agricultural seasons.
Supporting Self-Reliance and Fiscal Stability
The partnership also aligns with the government’s broader goal of reducing dependency on single-country suppliers and building resilient supply chains for critical agricultural inputs. In addition, stable import pricing supports efforts to contain the country’s fertiliser subsidy burden, which hit a record ₹2.55 lakh crore in FY 2022–23. By locking in predictable pricing through long-term contracts, the government can better manage its fiscal commitments while ensuring affordability for farmers.
Strengthening Bilateral Ties and Agricultural Resilience
India’s collaboration with Saudi Arabia’s Ma’aden not only enhances fertiliser security but also deepens bilateral trade ties in the strategic energy and agriculture sectors. As the country looks to ensure uninterrupted access to essential nutrients, this deal reinforces India’s commitment to agricultural resilience and food security.
As reported by knnindia.co.in, by investing in multi-year agreements and international joint ventures, India is taking proactive steps to shield its farming sector from geopolitical and market uncertainties—securing the backbone of the country’s economy.
