Indian fertilizer firms have agreed to purchase 3.1 million metric tons of Diammonium Phosphate (DAP) annually from Saudi Arabia until FY30, with potential future expansions to include Urea.
India is facing a shortage of DAP and Urea during the current Kharif sowing season, leading to agreements to broaden bilateral relations to ensure fertilizer security.
A joint team has been established to explore long-term collaboration in the fertilizer sector, with Indian imports of DAP from Saudi Arabia showing an increase in recent years.
Multiple states in India, including Punjab, Telangana, Rajasthan, and Uttar Pradesh, have raised concerns over fertilizer shortages during the ongoing Kharif sowing season, with the government estimating higher demand for DAP.