Morocco, India plan to sign a long-term phosphate supply agreement

India is preparing future agreements with Morocco to ensure long-term supply of phosphates, in light of growing concern over fertilizer security and a worrying food crisis.

Indian Minister of Chemicals and Fertilizers Mansukh Mandaviya is expected to visit Morocco this January 13-14, in order to sign the said agreements.

According to Indian media, “After growing global concerns about food security, India will soon sign agreements with Morocco to secure long-term supplies of rock phosphate, an essential raw material for the production of fertilizers diammonium phosphate (DAP) and potassium nitrate (NPK).”

The visit will also be an opportunity for Indian companies to explore the possibilities of setting up dedicated plants for the production of DAP and .NPK

“Morocco has huge reserves of phosphates, which is an essential element for fertilizer production,” said the Minister, announcing his visit “to sign a memorandum of understanding.”

India is now seeking to establish trade and investment links with mineral-rich countries through multi-year import and investment agreements, that will diversify sources of supply and protect farmers from shortages, hence its interest in the Kingdom’s offer.

Imports of diphenyl ammonium phosphate from China were halted following the war in Ukraine, which led to higher raw material prices.

“Under the joint venture, actors, both private and public, will take care of the extraction, production and delivery of fertilizers to India,” the minister added. The official said an agreement with Egypt was also in the works.

Data from the Indian Ministry of Chemicals and Fertilizers showed that India’s total fertilizer requirement is about 43.5 million tons.

India is totally dependent on Mauritius imports of potash, which have fluctuated between 2.4 million tons and 4.7 million tons in recent years.

In the case of ammonium phosphate, about 60% of the needs are imported, as India’s fertilizer requirements amounted to about 43.5 million tons.

Morocco has achieved significant financial revenues from exporting phosphate to the world in recent years, due to the increasing global demand for fertilizers.

Morocco’s Cheriffian Office of Phosphates (OCP) is one of the largest phosphate producers in the world, and holds about 70% of the world’s reserves of the crucial mineral for food security.

In 2022 alone, the state-owned group exported more than 500,000 tons of phosphates to African countries, some of which were donations, while others were offered at preferential prices.

OCP Laos successfully multiplied its production capacity from 3.4 million tons to 12 million while, all while raising its stock reserves meant for African countries.