Eye on China, India ramps up fertiliser cooperation with Saudi Arabia

NEW DELHI: India and Saudi Arabia witnessed the signing of long-term agreements between leading Sauidi mining company Ma'aden and Indian companies, IPL, KRIBHCO and CIL, for supply of 3.1 million MT of DAP (diammonium phosphate) fertiliser per annum for five years, with likely extension of another five years with mutual consent.

The agreements were signed during Union minister for fertilisers and chemicals J P Nadda's ongoing "landmark" visit to Saudi Arabia.

Indian officials said this represents a substantial increase in the availability of the crucial DAP fertiliser, ensuring the goal of food security in the medium to long term. China is one of the countries India has been dependent on for DAP supplies, and the govt is looking to reduce its reliance on the country for what is the most used fertiliser in India after urea.

Without naming China, a source said that at a time when some countries are showing a restrictive approach in fertiliser supply, the commitment from Riyadh demonstrates that India's friends and partners continue to work closely to deliver requirements and collaborate on future investments.

Indian officials said Nadda's visit provided a further impetus to the expanding strategic partnership with Saudi, following the State Visit of PM Modi to Jeddah in April.

"Both sides underscored their commitment to broadening the scope of bilateral relations to include other key fertilisers such as urea along with DAP, aiming to ensure India's fertiliser security. Talks were also held on facilitating mutual investments, with a focus on exploring opportunities for Indian PSUs to invest in audi fertiliser sector, and reciprocally, Saudi investments in India," said an official.