OCP: A 600,000 Ton Fertilizer Agreement with India
OCP Strengthens Its Position in the Indian Phosphate Fertilizer Market
The Moroccan group OCP has once again solidified its position in the Indian phosphate fertilizer market. Several Indian importers have entered into an agreement with the group for a total of 600,000 tons of fertilizers, which includes 350,000 tons of diammonium phosphate (DAP) and 250,000 tons of triple superphosphate (TSP).
These shipments are scheduled to be loaded from August to November, amid India’s efforts to secure supplies ahead of the winter agricultural season. According to market data available as of September 3, DAP was trading at approximately $915 to $920 per ton CFR India.
Five Indian Importers Involved
This agreement involves prominent companies such as Indian Potash Limited (IPL), Paradeep Phosphates Limited (PPL), Rashtriya Chemicals and Fertilizers (RCF), Hindustan Urvarak & Rasayan Limited (HURL), and Fertilisers and Chemicals Travancore (FACT).
These companies are among the leading players in India’s production, importation, and distribution of fertilizers. However, the specific allocation of the 600,000 tons among the five companies has not been disclosed.
Out of the total volume, DAP represents 350,000 tons, which is a little over 58%, while TSP accounts for 250,000 tons, around 42%.
The shipments are planned over four months, from August to November. This timeframe corresponds to the buildup of stock needed for the rabi agricultural season, which traditionally runs from October to March.
DAP Prices Remain Above $900
The Indian DAP market remains under pressure. As of September 3, the reference price ranged between $915 and $920 per ton CFR India.
For reference, if the 350,000 tons of DAP in the agreement were valued at the observed levels on that date, their theoretical value would be between $320.25 and $322 million. However, this calculation does not reflect the contractual value of the agreement, as prices are subject to market fluctuations and the shipments will be delivered gradually.
Available information suggests a pricing formula indexed to CFR India references. Some payment terms, including a 45-day timeframe for DAP and 120 days for TSP, have also been reported, although sufficient confirmation for these to be considered definitive is lacking.
India Increases Purchases Ahead of rabi Season
This new order is part of a series of purchases made by Indian importers to secure their stock.
In June, a significant Indian buyer imported 100,000 tons of DAP and 100,000 tons of TSP from Morocco, with shipments scheduled for June and July. At that time, DAP was negotiated at around $935 per ton CFR on the eastern coast and $930 on the western coast.
By the end of August, National Fertilizers Limited had also secured two shipments of 30,000 tons of DAP each, totaling 60,000 tons, at high-end prices of around $920 per ton CFR with credit.
This surge in purchasing reflects New Delhi’s desire to secure sufficient volumes for the upcoming agricultural campaigns.
India’s Ongoing Dependence on Imports
Beyond seasonal needs, India’s strategy addresses its structural dependence on imported phosphate fertilizers.
As of July 14, during the kharif season 2026, Indian authorities estimated DAP needs at 2.964 million tons, while the availability was around 3.775 million tons. Consumption had already reached 2.139 million tons.
The Indian government maintains a regulated sale price for DAP at 1,350 rupees per 50-kilogram bag, while TSP is sold for 1,300 rupees per bag, supported by the public subsidy system for phosphate and potash fertilizers.
This policy emphasizes the importance of controlling international procurement costs. A sustainable rise in DAP and TSP prices automatically increases the pressure on public compensation mechanisms.
Morocco: A Strategic Supplier for New Delhi
The 600,000 tons agreement should also be contextualized within a broader partnership between Morocco and India.
The Indian Ministry of Fertilizers confirmed in July that Indian companies had negotiated arrangements for 2.5 million tons of Moroccan DAP and TSP for the 2025-2026 fiscal year.
Simultaneously, India secured significant volumes from other suppliers, including 3.1 million tons of DAP from Saudi Arabia and approximately 3.01 million tons of DAP and NPK from Russia.
Thus, the 600,000 tons announced represents 24% of the 2.5 million tons of Moroccan products mentioned by Indian authorities. However, it remains uncertain whether this new volume is an addition to the total or part of an already secured agreement.
Therefore, it would be premature to announce a cumulative volume of 3.1 million tons of Moroccan fertilizers without official confirmation on the nature of the operation.
OCP and India Deepen Their Partnership
This new order comes just days after a significant advancement in economic cooperation between Rabat and New Delhi.
During the visit of Indian Minister of State for Commerce and Industry Jitin Prasada to Morocco on August 24 and 25, fertilizers and phosphates were highlighted among the priority sectors in bilateral discussions.
The Indian official notably visited Jorf Lasfar, at the site of India Morocco Phosphore (IMACID), the joint venture between OCP and Indian partners. This visit facilitated discussions on cooperation prospects in the phosphate and fertilizer sectors.
A Cooperation Built Over Decades
The relationship between OCP and Indian fertilizer industry players is rooted in long-standing cooperation. This relationship has gradually evolved from supplying ore and phosphoric acid to broader partnerships on finished fertilizers.
A previous strategic agreement already outlined up to 1 million tons of DAP and 700,000 tons of TSP intended for the Indian agricultural market.
With the new commercial arrangements finalized in recent years, Morocco now holds a significant position in New Delhi’s supply security strategy.
For OCP, the Indian market reaffirms its status as a strategic outlet, while India seeks to rely on trustworthy suppliers to mitigate its exposure to global fertilizer market disruptions.
