India-Saudi DAP Import Deal with Ma’aden for Fertilizer Supply
Why in the news
Three Indian fertilizer companies locked in long-term DAP supply from a Saudi mining firm.
Key facts
| Item | Detail |
|---|---|
| Indian parties | Indian Potash Ltd, KRIBHCO, Coromandel International |
| Saudi party | Ma’aden (Saudi Arabian Mining Company) |
| Product | Di-Ammonium Phosphate (DAP) |
| Volume | 3.1 MMT per year from FY 2025-26 |
| Term | Five years (FY 2025-30), extendable by mutual consent |
Strategic features
- Joint India-specific R&D on alternative and customised fertilizers for soil health and productivity.
- Possible Indian PSU investment in Saudi mining and fertilizer, and Saudi investment in India’s agri-inputs.
- A bilateral team on fertilizer policy, trade logistics and mineral sourcing.
Significance
- Steady DAP supply supports food security and price stability despite global disruptions.
- Takes Saudi ties beyond energy into agriculture and minerals.
Exam angle
- DAP = Di-Ammonium Phosphate; Saudi firm: Ma’aden.