India signed a 5-year long-term fertilizer import agreement with Ma’aden (Saudi Arabia) for the annual supply of 3.1 million metric tonnes (MMT) of DAP fertilizer starting FY 2025–26. Three Indian companies involved:
- IPL (Indian Potash Ltd.)
- KRIBHCO (Krishak Bharati Cooperative Ltd.)
- Coromandel International
Key Details
| Aspect | Information |
| Agreement Type | Long-term (5 years), extendable |
| Annual DAP Volume | 3.1 MMT (~30 LMT) from FY 2025–26 |
| 2024–25 DAP Imports from Saudi | 19.05 LMT (↑17% from 2023–24) |
| Other Fertilizers Discussed | Urea, NPKS |
| Collaborative Focus | Joint R&D, region-specific fertilizers, investment in agri-inputs, policy dialogue |
Strategic Significance
- Ensures long-term Fertilizer Security: Predictable DAP supply in times of global volatility.
- Boosts Food Security: Supports nutrient-rich crop production.
- Enhances India’s preparedness for seasonal fertilizer demand.
- Deepens Strategic Partnership: Strengthens India–Saudi Arabia energy and agri-linkages.
- Custom Fertilizer Innovation: Focus on soil-specific, crop-sensitive alternatives.
India’s Fertilizer Dependency & Policy Strategy
Import Dependence:
| Fertilizer | Dependency |
| MOP (Potash) | Fully imported (Canada, Russia, Jordan, etc.) |
| Urea | 85% met domestically but dependent on imported LNG |
| DAP | Mostly imported as finished product & raw materials from Saudi Arabia, China, Morocco, Russia, etc. |
Problems with High-Analysis Fertilizers (Urea, DAP, MOP):
- Currency depreciation makes imports costlier.
- Excess nutrients (46% N in Urea, 60% K in MOP, 46% P + 18% N in DAP) → Nutrient imbalance, poor soil health.
- Disrupts long-term productivity.
Alternative: APS (Ammonium Phosphate Sulphate – 20:20:0:13)
Advantages:
- Balanced nutrient profile (N, P, S) – better than DAP for oilseeds, pulses, maize, onion, chilli, cotton.
- Uses less phosphoric acid – reduces import burden.
- Improves soil health, increases yield, boosts foreign exchange savings.
- Double output per phosphoric acid unit vs DAP – economically efficient.
Shift in Usage:
- NPKS sales projected to double from 7.3 mt (2013–14) to 14 mt (2024–25) due to 20:20:0:13 popularity.
Policy Directions:
- Limit urea, DAP, MOP usage.
- Promote complex fertilizers (e.g., 10:26:26:0, 12:32:16:0).
- Encourage balanced, crop-specific fertilisation.
Key Facts
- DAP (Diammonium Phosphate): Second most commonly used fertilizer in India after urea; vital for root development and crop growth.
- Ma’aden: One of the largest mining and fertilizer companies globally, based in Riyadh, Saudi Arabia.
- IPL, KRIBHCO, Coromandel: Key Indian fertilizer importers.
- DAP Composition: 18% Nitrogen + 46% Phosphorus.
- APS Composition: 20% N + 20% P + 13% Sulphur.