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This deal was signed during an official visit to Saudi Arabia by India’s Minister of Chemicals and Fertilizers, JP Nadda, and was finalized in his presence.

Published date india.com Published: July 14, 2025 4:00 PM IST
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New Delhi: In a major development, Indian fertilizer companies IPL, KRIBHCO, and CIL have signed an agreement with Saudi Arabia’s Ma’aden company. The agreement pertains to the supply of DAP (Di-Ammonium Phosphate) fertilizer. As per the agreement, the company will supply 3.1 million tonnes of DAP fertilizer to India every year for the next five years.

The agreement has come into effect from the current financial year. Both sides may extend the agreement for another five years through mutual consent. This deal was signed during an official visit to Saudi Arabia by India’s Minister of Chemicals and Fertilizers, JP Nadda, and was finalized in his presence.

China Imposed Ban

In India, DAP is the second most widely used fertilizer after Urea. China has imposed a ban on the export of phosphate, which is an essential component for making DAP fertilizer. As a result, DAP production in India has declined. Additionally, China has also halted the shipment of specialty fertilizers from June 26. These specialty fertilizers are used to boost the yield of fruits, vegetables, and other crops.

It is important to note that this agreement will make DAP fertilizer easily available to Indian farmers. The Kharif crop season is currently underway. A shortage of DAP at the beginning could have affected crop production. DAP fertilizer is used immediately after sowing.

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How is the trade between the two countries?

Both India and Saudi Arabia have agreed to strengthen bilateral relations by including other essential fertilizers like urea along with DAP. J.P. Nadda said that this agreement will be highly beneficial for Indian farmers. It will ensure timely availability of fertilizers and improve crop yields.

India imported 1.905 million tonnes of DAP from Saudi Arabia in the financial year 2025, which is approximately 17 percent more than the 1.629 million tonnes imported in the previous financial year 2024.

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