SF Prep Notes

India and Saudi Arabia firm up long-term DAP supply as Nadda's visit ends

On 13 July 2025 in Riyadh, Union Minister J.P. Nadda witnessed long-term agreements under which Saudi firm Maaden will supply Indian companies 3.1 million tonnes of DAP a year for five years from 2025-26.

Summary

Union Minister of Chemicals and Fertilizers J.P. Nadda concluded his 11–13 July 2025 visit to Dammam and Riyadh in Saudi Arabia on 13 July, when he and Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim Al Khorayef witnessed the signing of long-term agreements between Maaden and the Indian companies IPL, KRIBHCO and CIL. Under the agreements, Maaden will supply an enhanced 3.1 million metric tonnes of Diammonium Phosphate (DAP) per annum for five years from 2025-26, extendable by another five years by mutual consent. A joint team led by India's Secretary (Fertilizer) and Saudi Arabia's Vice Minister for Mining Affairs was set up to explore long-term collaboration, and both sides discussed widening cooperation to fertilizers such as urea. India imported 1.9 million tonnes of DAP from Saudi Arabia in 2024-25, about 17% more than the 1.6 million tonnes of the previous year.

Key facts

Visit
Dammam and Riyadh, 11–13 July 2025
Agreements
Long-term agreements: Maaden with IPL, KRIBHCO and CIL
Volume
3.1 million MT of DAP per annum for five years from 2025-26; extendable by five years
Saudi counterpart
Bandar bin Ibrahim Al Khorayef, Minister of Industry and Mineral Resources
Joint team
Secretary (Fertilizer), India and Vice Minister for Mining Affairs, Saudi Arabia
DAP imports from KSA
1.9 million MT in 2024-25, ~17% up from 1.6 million MT
Site visit
Maaden phosphate facilities at Ras Al Khair, 12 July

Practice MCQs 4 questions

Q1

Under the long-term agreements signed on 13 July 2025, how much DAP will Saudi Arabia's Maaden supply to Indian companies per annum from 2025-26?

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Correct answer: A — 3.1 million metric tonnes

Ministry of Chemicals & Fertilizers: overall enhanced 3.1 million MT of DAP per annum for five years from 2025-26. (1.9 MMT was India's 2024-25 import from Saudi Arabia.)

Q2 Advanced

Which Saudi company signed long-term DAP supply agreements with IPL, KRIBHCO and CIL during J.P. Nadda's visit in July 2025?

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Correct answer: C — Maaden

Ministry of Chemicals & Fertilizers: the two Ministers witnessed the signing of Long-Term Agreements between Maaden and Indian companies IPL, KRIBHCO and CIL.

Q3 Advanced

Consider the following statements about J.P. Nadda's July 2025 visit to Saudi Arabia: 1. The DAP supply agreements run for five years from 2025-26 and can be extended by five more years by mutual consent. 2. A joint team led by India's Secretary (Fertilizer) and Saudi Arabia's Vice Minister for Mining Affairs was set up. 3. India's DAP imports from Saudi Arabia fell in 2024-25 compared with the previous year. Which of the statements given above is/are correct?

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Correct answer: B — 1 and 2 only

Statements 1 and 2 are correct. Statement 3 is wrong: imports rose about 17%, from 1.6 million MT to 1.9 million MT in 2024-25.

Q4 Advanced

During his July 2025 visit, J.P. Nadda toured Maaden's phosphate production facilities at which Saudi location?

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Correct answer: D — Ras Al Khair

Ministry of Chemicals & Fertilizers: on 12 July, Nadda and the delegation visited Maaden facilities at Ras Al Khair and toured the phosphate production plant.

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