India to procure phosphatic and potassic fertilisers from Jordan

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19 May 2022, New Delhi: A delegation led by Dr. Mansukh Mandaviya, Union Minister for Ministry of Chemicals & Fertilizer visited Jordan last week with the objective of securing fertilizers and raw materials, both for short and long term. 

The visit was strategically important because of the ongoing global fertilizer crisis. The objective was to ensure supply of Phosphatic and Potassic fertilisers to India. MOUs were signed with Jordan Phosphate Mining Company (JPMC) for supplies of 30 LMT Rock Phosphate, 2.50 LMT DAP, 1 LMT phosphoric acid for the current year with the Indian public, cooperative and private sector companies. 

India has also signed a long term MOU for 5 years with Jordan for annual supplies of 2.75 LMT of MoP which will uniformly increase every year up to 3.25 LMT, he added. “These supplies will be crucial for assured fertiliser supply for the ensuing cropping seasons in India”, the Union Minister highlighted. 

During the meetings Dr. Mansukh Mandaviya mentioned Jordan as India’s preferred partner for the fertilizer sector. Given that the two countries have a long history of trade relationships and people to people contact, Dr. Mansukh Mandaviya highlighted the need to strengthen this association especially during these challenging times for the fertilizer sector. 

With a thrust to secure additional quantities for the Indian market, Jordan was requested to take the lead in announcing India specific terms for supply of fertilizers and to consider additional production capacities in Jordan with India as a target prime market. Both sides agreed that there are tremendous opportunities to work together in areas of Fertilizers, Agriculture and Health.

The Indian delegation led by the Union Minister of Chemicals and Fertilizers visited the JPMC mines and Phosphoric Acid production facilities set up by JIFCO and Indo-Jordan Company.       

The delegation also visited Arab Potash headquarters where the Union Minister was received by Chairman, President & CEO. A presentation on current status and future plans up to the year 2058 regarding extraction of MOP from the Dead Sea was made by the Arab Potash officials. It was mentioned Jordan is allocating almost 25% of their production of MOP to India. While appreciating efforts by Arab Potash, Dr Mandaviya stressed the need to increase the supplies of MOP to India at reasonable rates. 

Jordan highlighted their keenness for further investments in Jordan especially by Indian companies. While appreciating the experience of existing joint ventures with IFFCO and equity partnerships of companies like IFFCO & IPL in JPMC, it was recognized that the Indian partners are strategic partners which have contributed all possible technical, financial, and marketing support in promoting capacity building within Jordan. This was acknowledged as one of the reasons for the turnaround of JPMC. With this experience, the Jordan Minister mentioned that not only the Indian investment is welcomed but it will also be given priority treatment in Jordan.

As for specific incentives on the trade front, Jordan appreciated that India being the largest buyer of phosphatic and potassic fertilizers, preferential treatment would be given. Both sides agreed to work on this aspect and draw a clear roadmap through the Joint Committee in a time-bound manner. They agreed to constitute a Joint Committee to look into secured short / long term fertilizer supplies, fresh investments, new JVs etc.

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