India and Saudi Arabia have signed landmark agreements for the supply of 3.1 million metric tonnes of diammonium phosphate (DAP) fertiliser annually for five years, with an option to extend for another five years. Saudi mining firm Ma'aden entered agreements with Indian Potash Ltd, KRIBHCO, and Coal India Ltd during Union Minister J P Nadda's visit to Saudi Arabia.

The deal significantly enhances India's fertiliser security as the country diversifies away from traditional suppliers like China. The agreement comes amid China's effective halt of specialty fertiliser exports to India for two months, forcing Indian companies to seek costlier alternatives from Europe, Russia, and West Asia at 15-20% higher prices.

India depends on China for around 80% of its specialty fertiliser imports.