A high level delegation led by Dr. Mansukh Mandaviya, Union Minister of Health & Family Welfare and Chemicals & Fertilizers, visited Jordan from 13th to 15th May 2022 with the objective of securing fertilisers and raw materials, both for the short and long term. This strategically important visit came against the backdrop of the ongoing global fertiliser crisis. Dr Mandaviya stated that the Jordan visit proved to be path-breaking in terms of ensuring the 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 Diammonium Phosphate (DAP), and 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 which would 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 fertiliser sector. Given that the two countries have a long history of trade relationships and people to people contact, Dr. Mandaviya highlighted the need to strengthen this association, especially during these challenging times for the fertiliser 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 fertilisers 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 fertilisers, agriculture and healthcare.
The Indian delegation visited the JPMC mines and Phosphoric Acid production facilities set up by JIFCO and Indo-Jordan Company. The delegation was warmly greeted by all the Indian engineers and labour force working in these facilities. They appreciated the visit by the minister which will go a long way in increasing their morale while working on the foreign soil.
You may also like to read: Indian Potash signs MoU with Israel Chemicals to get supply of Muriate of Potash
The delegation also visited Arab Potash headquarters where the Union Minister was warmly received by Chairman, President & CEO. A presentation on the current status and future plans up to the year 2058 regarding extraction of Muriate of Potash (MOP) from the Dead Sea was made by the Arab Potash officials. It was mentioned Jordan is allocating almost 25 per cent 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 and IPL in JPMC, it was recognised that the Indians 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 would 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 fertilisers, 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 and long term fertiliser supplies, fresh investments and new JVs.