Riyadh, July 14, 2025: In a major diplomatic and trade milestone, India has secured a long-term supply of Diammonium Phosphate (DAP) fertilizer from Saudi Arabia. The agreement was signed during the official visit of Union Minister Shri J.P. Nadda to the Kingdom of Saudi Arabia from July 11–13, 2025.
The visit marks a significant step forward in strengthening India–Saudi Arabia economic ties—especially in the sectors of fertilizers, healthcare, and pharmaceuticals.
India Secures 3.1 Million MT DAP Supply from FY 2025-26
The highlight of the visit was the signing of Long-Term Agreements between Saudi-based Maaden and leading Indian companies—IPL, KRIBHCO, and CIL. The agreement ensures an annual supply of 3.1 million metric tons of DAP fertilizer to India for five years starting FY 2025-26. It includes a provision for an extension by another five years with mutual consent.
India currently imports around 1.9 million MT of DAP from Saudi Arabia, which was a 17% increase from 1.6 million MT in 2023-24. With this new agreement, the supply will surge by over 60% from next year.
Boosting Fertilizer Security and Investment Ties
In Riyadh, Shri Nadda held detailed discussions with His Excellency Mr. Bandar bin Ibrahim Al Khorayef, Saudi Minister of Industry and Mineral Resources. The talks focused on strengthening collaboration in fertilizers, petrochemicals, and pharmaceuticals.
Both sides expressed interest in expanding the DAP agreement to include other key fertilizers like Urea. This is a strategic move to boost India’s fertilizer security and ensure uninterrupted agricultural growth.
Joint Working Group Formed for Long-Term Collaboration
To take things further, a joint team has been established—led by India’s Secretary (Fertilizers) and Saudi Arabia’s Vice Minister for Mining Affairs. Their mandate is to explore long-term cooperation and new opportunities in fertilizer production and trade.
The initiative aims to deepen bilateral ties while facilitating mutual investments. India is also exploring opportunities for its Public Sector Undertakings (PSUs) to invest in Saudi Arabia’s fertilizer sector, and vice versa.
Healthcare Collaboration Also on the Agenda
Beyond fertilizers, the visit also saw meaningful progress in the healthcare domain. Shri J.P. Nadda held a bilateral meeting with H.E. Abdulaziz Al-Rumaih, Vice Minister of Health of Saudi Arabia.
They discussed a wide range of subjects including:
- Medical sector collaboration
- Pharmaceutical cooperation
- Digital health solutions
- Knowledge sharing and skill development
Both parties acknowledged the importance of the MoU on Health signed during Prime Minister Narendra Modi’s recent state visit to Saudi Arabia. The health sector partnership is poised to benefit millions in both nations.
Strategic Economic Dialogue with Saudi Energy Minister
Shri Nadda also met His Royal Highness Prince Abdulaziz bin Salman Al Saud, Minister of Energy and Co-chair of the Strategic Partnership Council. Their conversation revolved around strengthening economic ties and expanding investment avenues.
His Royal Highness hosted a lunch in honor of the Indian delegation, underlining the warmth and depth of bilateral relations.
Tour of Maaden Phosphate Facilities in Ras Al Khair
On July 12, Shri Nadda and his team visited Maaden’s phosphate plant at Ras Al Khair. The delegation was welcomed by Mr. Hassan Al Ali, Chairman of Maaden Phosphate, and other senior officials.
India is one of Maaden’s largest export destinations. The visit showcased Saudi Arabia’s growing role as a reliable fertilizer supplier to India’s rapidly growing agricultural sector.
Strengthening Business and Cultural Ties
On July 11, the Chairman of the Saudi-India Business Council, Mr. Abdulaziz bin Abdul Hadi Al Qahtani, hosted a dinner in honor of Shri Nadda in Dammam. The event was attended by business leaders from Saudi Arabia’s Eastern Province.
This gathering reflected a shared commitment to boosting India–Saudi business cooperation across multiple sectors, including fertilizers, energy, and healthcare.
Conclusion: A Fertile Future Ahead
Shri JP Nadda’s visit has laid the foundation for a stronger, more strategic India–Saudi Arabia partnership. From securing vital fertilizer supplies to initiating collaboration in healthcare and investments, the outcomes have been both practical and promising.
With long-term agreements in place, the partnership will support Indian farmers, boost bilateral trade, and contribute to Viksit Bharat @2047.
