India's Strategic Fertilizer Deals for Rabi 2025-2026
On March 10, the Indian government confirmed before the Rajya Sabha that it has secured an impressive 8.6 million tons of fertilizers through long-term agreements with three nations, specifically 3.1 million tons from Saudi Arabia, 3 million tons from Russia, and 2.5 million tons from Morocco via the OCP Group. This announcement, made by Minister Jagat Prakash Nadda, aims to assure stakeholders about the availability of fertilizers for the upcoming Rabi season of 2025-2026, especially since parliamentary data indicates an adequate supply of urea, DAP, MOP, and NPKS across the country.
This diversification strategy comes in response to a critical need within the Indian agricultural sector. Notably, India's imports of DAP from China have plummeted, decreasing from 2.2 million tons in the 2023-2024 period to just 850,000 tons for 2024-2025 as Beijing has gradually restricted and subsequently halted its exports. To mitigate this shortfall, New Delhi has accelerated its partnership efforts, particularly with Morocco; for instance, early in 2025, OCP Nutricrops entered into agreements with six Indian companies covering 2.5 million tons of DAP and TSP, which represents about 22% of India's requirements during the first ten months of the year. The OCP Group, already holding a 28% stake in Paradeep Phosphates and having joint ventures with Chambal Fertilizers and Tata Chemicals, has established itself as a structural pillar in ensuring India's food security.
Domestic Production and Global Context
In parallel, the Indian government has bolstered domestic production, which has increased from 16 million tons in 2014-2015 to 21.1 million tons in 2024-2025. This has been achieved by expanding the NBS subsidy regime from 22 to 28 grades and maintaining freight subsidies for single superphosphate. The recent announcement comes at a time when the Middle East is embroiled in conflict, particularly with Iran's de facto closure of the Strait of Hormuz disrupting global energy and fertilizer flows. The fact that New Delhi has signed a massive agreement with Saudi Arabia—whose exports are heavily dependent on this strait—suggests India is banking on a quick reopening of this vital passage. The Indian Ministry of Petroleum has expressed confidence, claiming eight weeks' worth of crude and petroleum product stocks, and the government is contemplating deploying the Indian Navy to escort its merchant vessels stranded in the Gulf.
In this context, as noted by Le Desk, the crisis puts OCP in a nuanced position: while the paralysis of exports from its Saudi rival, Ma'aden, opens up market shares for OCP, it also threatens OCP's own supplies of sulfur and ammonia from the Gulf. Nevertheless, with a projected revenue of 113.9 billion dirhams (MAD) in 2025, marking a 17% increase, and with its Atlantic facilities located away from conflict zones, the Moroccan giant possesses robust advantages to capitalize on a crisis that its clients, particularly India, seem to deem as temporary.
As reported by ledesk.ma.
