Three Indian firms sign long-term DAP fertilizer supply pact with Saudi's Ma'aden
Indian Potash Ltd, Krishak Bharati Cooperative Ltd (Kribhco) and Central Insecticides Laboratory signed long-term agreements with Ma'aden to raise the supply of diammonium phosphate (DAP) fertilizer to 3.1 million tonnes per annum for five years starting FY26 during the visit of Union minister J.P. Nadda to the West Asian nation, according to a statement on Sunday. Nadda is the minister for health and family welfare, and chemicals and fertilizers.
In FY25, India's imports of DAP fertilizer from Saudi Arabia were about 1.9 million tonnes, around 17% over the 1.6 million tonnes imported during FY24, the statement said.
The agreements will extend for a period of five additional years with mutual consent, the statement from the chemical and fertilizer ministry said.
About 10-11 million tonnes of fertilizer is required for India's domestic demand each year, with about 60% dependent on imports. Fertilizer imports assume importance due to the crucial subsidy, particularly DAP, which the union government provides under the Nutrient Based Subsidy scheme.
In FY25, India's imports of DAP fertilizer from the Saudi Arabia were about 1.9 million tonnes, around 17% over the 1.6 million tonnes imported during FY24, the statement said.
Nadda met with the Saudi Arabian minister of industry and mineral resources, Bandar bin Ibrahim Al Khorayef, in Riyadh on Sunday to discuss partnerships in fertilizers, petrochemicals, and pharmaceutical sectors, the statement said.
The two ministers discussed further investments by Indian state-owned companies in Saudi Arabia in the fertilizer sector, and Saudi investments in India.
India's fertilizer secretary and the vice-minister for mining affairs for Saudi Arabia in its ministry of industry and mineral resources also created a joint team to explore long-term collaboration in the sector.
Nadda also met with his Saudi Arabian health minister on Sunday to discuss co-operation in the medical sector, health services, pharmaceuticals, digital health solutions, and knowledge exchange.
During prime minister Narendra Modi's visit to Saudi Arabia in April this year, the two nations extended the memorandum of understanding on cooperation in the field of medical products regulation between the Saudi Food and Drug Authority and Central Drugs Standard Control Organization for five years, according to a statement by the ministry of external affairs.
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