India, Saudi Maaden Sign 5-Year DAP Deal


India and Saudi Arabia have signed crucial agreements to enhance fertilizer supply to India. During Union Minister JP Nadda’s visit from July 11–13, 2025, in Dammam and Riyadh, the agreements were finalized. These deals aim to secure India’s fertilizer needs and boost cooperation in health and pharmaceuticals.

Strengthening Fertilizer Trade

  • Union Minister JP Nadda led a senior delegation to Saudi Arabia to bolster trade ties.
  • Long-term supply agreements were signed between Saudi firm Maaden and Indian companies like IPL, KRIBHCO, and CIL.
  • India will receive 3.1 million metric tons of Diammonium Phosphate (DAP) fertilizer annually for five years starting from 2025–26.
  • The deal could be extended for another five years with mutual consent.

Boosting Fertilizer Security and Investment

  • Both countries agreed to expand cooperation to include Urea and other key fertilizers.
  • Discussions were held on mutual investments with Indian public sector firms showing interest in investing in the Saudi fertilizer industry.
  • A joint team has been formed for long-term collaboration, including research on India-specific customized fertilizers.

Cooperation in Health and Pharmaceuticals

  • Nadda met with Saudi Vice Minister of Health to discuss collaboration in medical services, digital health, pharma production, and knowledge sharing.
  • Importance of the MoU on Health signed during PM Modi’s visit to Saudi Arabia was highlighted.

Industry Visit and Future Outlook

  • The Indian delegation visited Maaden’s Phosphate Plant at Ras Al Khair to strengthen industrial ties.
  • The agreements aim to secure steady fertilizer supplies for Indian farmers and support long-term food security goals.

Key Takeaways for Competitive Exams

  • India and Saudi Arabia signed long-term agreements to enhance fertilizer supply.
  • India will receive 3.1 million metric tons of DAP fertilizer annually for five years.
  • The agreements aim to boost cooperation in health and pharmaceuticals.
  • Both countries agreed to expand cooperation to include Urea and other key fertilizers.
  • The agreements are expected to secure steady fertilizer supplies for Indian farmers and support long-term food security goals.

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