Why in news?
Three Indian fertiliser companies—Indian Potash Limited (IPL), Krishak Bharati Cooperative (KRIBHCO) and Coromandel International—signed a five‑year deal with Saudi Arabia’s Ma’aden to import 3.1 million metric tonnes of diammonium phosphate (DAP) annually starting from FY 2025–26.
Salient points of the agreement
- Long‑term supply: Ensures a stable annual import of 3.1 MMT of DAP, increasing India’s total DAP imports from Saudi Arabia to around 30 lakh tonnes.
- Partnership scope: Includes joint research on alternative, soil‑friendly fertilisers tailored to Indian agro‑climatic conditions.
- Investment opportunities: Opens avenues for Indian public sector undertakings to invest in Saudi fertiliser production, while encouraging Saudi investment in India’s agri‑inputs sector.
- Strategic dialogue: Establishes a bilateral forum for policy coordination, technology sharing and mining cooperation.
Benefits for India
- Food security: A steady supply of DAP supports nutrient‑rich farming and enhances crop productivity.
- Reduced vulnerability: Long‑term contracts mitigate price volatility and geopolitical supply disruptions.
- Strengthened ties: The agreement underscores the growing strategic partnership between India and Saudi Arabia beyond energy cooperation.
- Innovation impetus: Collaboration on developing customised fertilisers can improve soil health and promote sustainable agriculture.
