THESE ARE GENERALLY tough times and the solution to navigate lies in ring-fencing the supply chain and quarantining the risks.
Coromandel International Limited, an agri-solutions provider, is doing this by inking a Memorandum of Understanding (MoU) with Ma’aden of Saudi Arabia, one of the world’s largest phosphate fertilizer producers. The MoU focuses on the long-term supply of di-ammonium phosphate (DAP) and NP/NPK fertilizers. Ostensibly, the idea is to fix the critical supply chain challenges while, at the same time, unlocking growth opportunities for both companies.
The global fertilizer market has faced disruptions due to geo-political instability and logistical challenges. India, as one of the largest consumers of fertilizers, has been particularly vulnerable to these issues. By leveraging Ma’aden’s expertise as a trusted supplier of ammonia and phosphate fertilizers, Coromandel has sought to mitigate the risks associated with supply disruptions in the fast-changing global environment.
“In recent times, DAP availability in India has been impacted due to global supply disruptions. This strategic partnership is a natural extension of our long-standing relationship and will help ensure timely availability of DAP and complex fertilizers to the Indian farming community,” said Narayanan Vellayan, Director – Strategic Sourcing.
For Ma’aden, this partnership highlights its strategic focus on India as a key growth market. As the largest supplier of phosphate fertilizers to India for over a decade, Ma’aden plans to expand its production capacity from 6 million tonnes to 9 million tonnes in the near term.
