India Averts Fertilizer Crisis After China’s DAP Fertilizer Export Halt

Описание: Indian Economic Updates : India Averts Fertilizer Crisis After China’s Diammonium Phosphate DAP Fertilizer Export Halt, Secures Supplies from Saudi Arabia and Morocco

India has successfully navigated a fertilizer crisis triggered by China’s abrupt halt on Diammonium Phosphate(DAP ) exports—a move widely viewed as supply-chain weaponisation amid the Kharif season and India’s Operation Sindoor against Pakistan. Beijing reportedly suspended inspections and export clearances in May–June, effectively strangling shipments to India.
With domestic Diammonium Phosphate stocks dwindling (opening May stocks fell to 1.25 Mt from 2.8 Mt last year), New Delhi launched a discreet yet far-reaching diplomatic campaign. Saudi Arabia emerged as a key partner, signing a long-term agreement with Indian firms—including Indian Potash Limited (IPL), Krishak Bharati Cooperative Limited (KRIBHCO), and Coal India Limited (CIL)—via Saudi Arabia’s Ma’aden (Saudi Arabian Mining Company) to supply 3.1 Mt annually over five years, with a renewal option. Alongside this, Morocco committed around 0.5 Mt, collectively covering approximately 1.5 Mt of the 2.2 Mt ordinarily sourced from China.
Remaining gaps—roughly 0.7 Mt—are expected to be filled through domestic reserves and potential Russian imports, as fertiliser remains outside international sanctions . India is also exploring additional sources such as Egypt, Nigeria, Tunisia, Jordan, and Russia.
These proactive steps reflect a broader Indian strategy aimed at reducing dependence on a single country and shielding its farmers from geopolitical trade risks. The successful negotiations are expected to guarantee an adequate supply of Diammonium Phosphate ahead of the upcoming Rabi sowing season. In the near term, the government seems to have secured enough stock for distribution starting in late July. However, the situation underscores the pressing need to diversify supply chains and minimize exposure to geopolitical pressure in key sectors.

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