India – Morocco: A long-term phosphate supply agreement to be signed

Due to a severe food crisis and rising worries about the security of fertilizer supplies, India is planning new agreements with Morocco to assure a long-term supply of phosphates.

Mansukh Mandaviya, the Indian Minister of Chemicals and Fertilizers, is scheduled to go to Morocco on January 13 and 14 to sign the aforementioned agreements.

Indian media reports that India would soon sign deals with Morocco to ensure long-term supply of rock phosphate, a crucial raw material for the synthesis of fertilizers diammonium phosphate (DAP) and potassium nitrate (NPK), in response to rising global concerns about food security.

Indian businesses will have the chance to use the visit to investigate the feasibility of establishing specific facilities for the manufacture of DAP and NPK.

The Minister stated that his visit was “to sign a memorandum of understanding” and noted that Morocco “had vast quantities of phosphates, which is an essential factor for fertilizer manufacture.”

India is interested in the Kingdom’s offer since it is now looking to create trade and business ties with nations that are mineral-rich through multi-year import and investment agreements that would diversify sources of supply and safeguard farmers against shortages.

Following the conflict in Ukraine, diphenyl ammonium phosphate imports from China were suspended, which raised the price of raw materials.

The minister said, “Actors in the joint venture—both public and private—will take care of the extraction, manufacture, and supply of fertilizers to India. A deal with Egypt, according to the official, is also in the works.

According to information from the Indian Ministry of Chemicals and Fertilizers, the country needs around 43.5 million tons of fertilizer overall.

India is entirely reliant on potash imports from Mauritius, which have recently ranged between 2.4 million tons and 4.7 million tons.

Since India’s fertilizer demands were roughly 43.5 million tons, over 60% of the ammonium phosphate requirements are met through imports.

Due to the rising need for fertilizers across the world, Morocco has recently seen huge financial gains from exporting phosphate.

One of the biggest phosphate producers in the world, Morocco’s Cheriffian Office of Phosphates (OCP) has around 70% of the world’s stocks of this essential mineral for food security.

The state-owned company shipped more than 500,000 tons of phosphates to African nations in 2022 alone, some of which were gifts and others of which were provided at discounts.

OCP Laos has effectively increased its stock reserves for African nations while increasing its production capacity from 3.4 million tons to 12 million.

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