Morocco and India plan to sign a long-term supply agreement

In a global context increasingly concerned about the safety of fertilizers to avoid the outbreak of a food crisis, India announces the signing of future agreements with Morocco to ensure a long-term supply of rock phosphate representing the key raw material for the manufacture of Di-ammonium phosphate (DAP) and Nitrogen-Phosphorus-Potassium (NPK).

According to the Indian business daily Mint, the minister in charge of chemicals and fertilizers, Mansukh Mandaviya, plans to visit Morocco to conclude agreements on the supply of fertilizers. The newspaper thus underlined that this visit could in particular offer an opportunity to Indian companies to set up factories there for the production of DAP and NPK intended for import.

Morocco has huge reserves of phosphorus, which is an important element for the production of fertilizers. Therefore, I am planning to travel to Morocco on January 13-14 to sign a Memorandum of Understanding with themsaid Mandaviya. He specified that an agreement with Egypt was also in preparation.

Under the joint venture, private and public players will handle the extraction, production and transport of fertilizers in India“, he added, noting that “fertilizer safety at present is one of the biggest issues“.

As fertilizer subsidy expenditure amounts to Rs 2.15 trillion during 2022, India has adopted a strategy to secure supplies from Senegal, Israel, Oman, Canada, Saudi Arabia and Jordan, said the same source, recalling that DAP supplies from China came to a halt in the middle of the Russian-Ukrainian conflict, leading to soaring prices for soil nutrients and raw materials, given that Russia is a major potash producer.

Data from India’s Department of Chemicals and Fertilizers showed that India’s total fertilizer requirement is around 43.5 million tons. It should be noted that India is totally dependent on imports of muriate of potash, which have fluctuated between 2.4 million tonnes and 4.7 million tonnes in recent years. In the case of ammonium phosphate, approximately 60% of requirements are imported.

To this end, India is now seeking to establish trade and investment ties with mineral-rich countries through multi-year import and investment agreements that will diversify sources of supply and protect farmers from shortages, hence his interest in the riches of the Kingdom.

Indeed, the Moroccan group OCP is one of the largest phosphate producers in the world after China and holds around 70% of the world’s reserves of the crucial ore for food security. In 2022 alone, the public giant exported more than 500,000 tonnes of phosphates to African countries, some of which considered as a gift and others at preferential prices.

Morocco, moreover, represents 31% of the world phosphate market thanks to the group, which has become the economic arm of the Kingdom, which has been able to increase, in recent years, its production capacity from 3.4 million tonnes to 12 million. while aiming for 15Mt by the end of 2023. In addition, Moroccan exports of phosphate and its derivatives increased by 54.8% at the end of November 2022 to reach a value of 108.044 MDH against 69.780 MDH at the end of November 2021 .

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