India Secures 5-Year DAP Fertilizer Agreement with Saudi Firm Maaden

India and Saudi Arabia have signed important long-term agreements to boost the supply of fertilizers to India. The agreements were finalized during Union Minister JP Nadda’s three-day visit from July 11–13, 2025, in Dammam and Riyadh. These deals aim to secure India’s fertilizer needs and strengthen cooperation in health and pharmaceuticals.

Strengthening Fertilizer Trade

Union Minister JP Nadda, who handles the Ministry of Chemicals and Fertilizers, led a senior delegation to Saudi Arabia to strengthen trade ties. During the visit, Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar bin Ibrahim Al Khorayef, and Nadda oversaw the signing of long-term supply agreements between Saudi firm Maaden and Indian companies like IPL, KRIBHCO, and CIL.

Under the new deal, India will receive 3.1 million metric tons of Diammonium Phosphate (DAP) fertilizer annually for five years starting from 2025–26. The deal may be extended for another five years with mutual consent. This is a big rise from the 1.9 million metric tons India imported from Saudi Arabia in 2024–25.

Boosting Fertilizer Security and Investment

Both countries agreed to expand their cooperation beyond DAP to include Urea and other key fertilizers. Discussions were also held on mutual investments, with interest from Indian public sector firms to invest in the Saudi fertilizer industry. In return, Saudi companies are also expected to explore investment opportunities in India.

A joint team has been formed to explore long-term collaboration, including research on India-specific customized fertilizers to improve farming results and sustainability.

Cooperation in Health and Pharmaceuticals

During the visit, Nadda also met with Saudi Vice Minister of Health, Abdulaziz Al-Rumaih, to talk about working together in medical services, digital health, pharma production, and knowledge sharing. They highlighted the importance of the MoU on Health signed during PM Modi’s recent visit to Saudi Arabia.

Nadda also held a special meeting with Prince Abdulaziz bin Salman Al Saud, Minister of Energy and co-chair of the Strategic Partnership Council, to discuss stronger economic relations between the two countries.

Industry Visit and Future Outlook

The Indian delegation visited Maaden’s Phosphate Plant at Ras Al Khair, where they were welcomed by Maaden Phosphate Chairman Hassan Al Ali. Maaden is a major supplier of fertilizers to India, and this visit helped boost industrial ties.

These agreements are expected to help India secure steady fertilizer supplies for its farmers and support long-term food security goals, while also opening new areas of collaboration in health and pharma.