India Signs Long-Term Fertilizer Supply Agreements with Saudi Arabia During Minister JP Nadda’s Visit
Union Minister for Health and Family Welfare and Chemicals and Fertilisers JP Nadda concluded his three-day visit to Saudi Arabia, securing crucial agreements that will significantly enhance India’s fertiliser supply chain and strengthen bilateral cooperation in health and pharmaceutical sectors.
The visit, which took place from July 11 to 13 in Dammam and Riyadh, focused primarily on enhancing bilateral cooperation between India and Saudi Arabia in chemicals and fertilisers. Nadda led a high-level delegation that included the secretary and other senior officials from the Department of Fertilisers and Ministry of External Affairs.
During discussions with Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim Al Khorayef in Riyadh, both ministers witnessed the signing of long-term agreements between Maaden and Indian companies including IPL, KRIBHCO, and CIL. These agreements will supply an enhanced 3.1 million metric tonnes of diammonium phosphate fertiliser per annum for five years from 2025-26 onwards, with provision for further extension of five years with mutual consent.
The agreements represent a substantial increase from current supply levels. India’s imports of DAP fertiliser from Saudi Arabia totalled 1.9 million metric tonnes in 2024-25, reflecting a 17 per cent increase over the 1.6 million metric tonnes imported during FY 2023-24. The new agreements will boost this supply to 3.1 million metric tonnes in the upcoming fiscal year.
Both sides emphasised their commitment to broadening bilateral relations to include other key fertilisers such as urea along with DAP, aiming to further ensure India’s fertiliser security. Discussions also covered facilitating mutual investments, with a focus on exploring opportunities for Indian public sector undertakings to invest in the Saudi fertiliser sector and reciprocal Saudi investments in India.
The ministers deliberated on avenues for collaborative research, particularly in developing India-specific customised and alternative fertilisers to enhance agricultural productivity and sustainability. A joint team has been established, led by Secretary Fertiliser on the Indian side and the Vice Minister for Mining Affairs in the Ministry of Industry and Mineral Resources on the Saudi side, to explore long-term collaboration in this sector.
Nadda also held a bilateral meeting with Prince Abdulaziz bin Salman Al Saud, Minister of Energy and co-chair of the Economy and Investment Committee of the Strategic Partnership Council between India and Saudi Arabia, to discuss ways to enhance economic partnership between the two countries. The prince hosted a lunch in honour of the union minister.
In the health sector, Nadda met with Abdulaziz Al-Rumaih, Saudi Vice Minister of Health, in Riyadh to discuss enhancing cooperation in medical services, health care, pharmaceuticals, digital health solutions, and knowledge exchange. They noted the significance of the bilateral MoU on health signed during Prime Minister Narendra Modi’s recent state visit to Saudi Arabia.
The delegation visited Maaden facilities at Ras Al Khair and toured the phosphate production plant. They were received by Hassan Al Ali, Chairman of Maaden Phosphate, and other senior officials. India represents a key export destination for fertilisers from Saudi Arabia, with Maaden being the leading company in this sector in the Kingdom.
The successful conclusion of Nadda’s visit underscored the strong economic ties between India and Saudi Arabia, particularly in fertilisers, while opening new avenues for cooperation in health and pharmaceutical sectors. The long-term fertiliser agreements are expected to provide greater supply security for India’s agricultural sector and strengthen the strategic partnership between the two nations.
(DD News)
