Three major Indian fertilizer producers, Indian Potash Limited (IPL), KRIBHCO, and Chambal Fertilizers and Chemicals Ltd (CIL), have entered into long-term agreements with Saudi Arabia’s leading mining and fertilizer company, Ma’aden. These agreements aim to enhance the annual supply of Diammonium Phosphate (DAP) fertilizer to 3.1 million metric tonnes starting from the financial year 2025-26, with an option for a five-year extension through mutual consent.
The agreements were formalized during the visit of Union Minister for Health and Family Welfare and Chemicals and Fertilizers, JP Nadda, to Saudi Arabia from July 11 to 13, 2025. He was accompanied by a high-level delegation that included senior officials from the Department of Fertilizers and the Ministry of External Affairs. The visit focused on deepening bilateral cooperation in the fields of chemicals, fertilizers, and pharmaceuticals.
In Riyadh, Minister Nadda held discussions with the Saudi Minister of Industry and Mineral Resources, Bandar bin Ibrahim Al Khorayef. Both sides explored strategies to strengthen fertilizer trade and production. The new supply commitment of DAP represents a significant increase from the 1.9 million metric tonnes imported in the financial year 2024-25, which was already a 17 percent rise from the previous year.
The ministers also stressed the importance of expanding cooperation to include other essential fertilizers such as urea. They discussed mutual investment opportunities, including the possibility of Indian public sector undertakings investing in Saudi fertilizer ventures, and Saudi interest in exploring investment options in India.
To support this growing partnership, a joint working group has been established. It will be led by the Secretary of Fertilizers from India and the Vice Minister for Mining Affairs from Saudi Arabia. The group will explore long-term collaboration and strategic planning in the fertilizer sector.
During the visit, JP Nadda also met Prince Abdulaziz bin Salman Al Saud, the Minister of Energy of Saudi Arabia, to discuss strengthening economic ties between the two countries. Additionally, he met the Saudi Vice Minister of Health, Abdulaziz Al-Rumaih, to explore cooperation in health services, digital health, pharmaceuticals, and medical technologies.
The minister visited Maaden’s phosphate production facility at Ras Al Khair, highlighting India’s growing importance as an export destination for Saudi fertilizers. The visit concluded with business engagements in Dammam.
