Indian Paradeep Phosphates secures supply deal with OCP to boost fertiliser production
This is part of the Indian company’s plan to increase its fertilizer market share from 12% to 25% by 2026.
MOROCCO – Paradeep Phosphates Ltd (PPL), a leading Indian fertiliser manufacturer, has signed a significant long-term supply agreement with Morocco’s OCP, the world’s largest controller of rock phosphate reserves, to secure 1.6 million tonnes of rock phosphate annually.
This strategic partnership aims to bolster PPL’s production capacity and support India’s efforts to address supply chain challenges in the phosphatic fertiliser sector.
“OCP in Morocco primarily controls over 70 per cent of the known rock reserves in the world. So they are a solid partner for us, both on an equity end and also as a strategic partner for our manufacturing,” said Suresh Krishnan, Managing Director and CEO of PPL.
The agreement aligns with PPL’s ambitious goal to increase its market share in India’s fertiliser industry from 12% to 25% by 2026, expanding its production capacity from 2.6 million tonnes to 3.7 million tonnes.
India’s domestic phosphatic fertiliser manufacturing capacity currently stands at 14 million tonnes, while demand reaches 20 million tonnes annually, necessitating imports of 6-7 million tonnes. The supply chain has faced additional strain due to reduced exports from China, a major global supplier.
However, Morocco and Saudi Arabia have stepped in to fill the gap, with Morocco playing a pivotal role.
In 2023, Morocco committed to supplying India with 1.7 million metric tonnes of phosphate fertilisers to enhance food security and promote sustainable agriculture.
PPL’s expansion strategy includes the acquisition of Mangalore Chemicals & Fertilizers Ltd (MCFL), expected to be finalized in the third quarter of the current financial year.
This acquisition will add 700,000 tonnes of production capacity and enable PPL to construct a new 600,000-tonne phosphatic fertiliser plant in Mangalore, further strengthening its market position.
In addition to the supply agreement, Morocco’s OCP Nutricrops announced a strategic research collaboration with the Indian Council for Research on International Economic Relations (ICRIER) in July 2025.
This partnership focuses on advancing customized and sustainable fertilisation practices tailored to India’s agricultural needs, reinforcing the commitment of both OCP and PPL to innovative and environmentally responsible solutions.
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