India eyes Egypt production base to secure fertilizer supply

India is looking to establish a permanent fertilizer production base across the MENA corridor — ending its reliance on volatile fertilizer spot markets by locking in an industrial base in Egypt. Indian companies are carrying out studies to build phosphate plants in Ain Sokhna and New Valley, Zawya reports, citing statements made to Arab press.

Where things currently stand: The projects are still in their approvals phase, with the firms in talks with the General Authority For Investments.

Why this matters

India imports over half its rock phosphate needs, largely from Egypt and Jordan. Locating production inside Egypt — one of the world’s top phosphate producers — reduces supply chain risk and anchors long-term access.

The ongoing regional war has driven urea prices for Indian buyers up more than 40% to over USD 700 per ton, turning fertilizer into a national security issue. Indian firms have already contracted 350k tons from local producers. Egypt’s 980 mn-ton Abu Tartour phosphate reserves and the EGP 16 bn Ain Sokhna fertilizer complex make the country an attractive option for new investments.

A corridor-wide fertilizer play

The success of the Oman India Fertilizer Company sets a GCC-wide precedent, with the long-term supply agreement keeping India’s fertilizer imports steady despite regional shocks — exactly the kind of architecture every other Gulf supplier relationship now needs.

India is already exploring a fertilizer framework with Saudi Arabia to tighten cooperation on fertilizer and phosphate supply. Together, these developments add up: India’s fertilizer security is no longer about procurement but rather a corridor project, spanning sourcing, storage and now production across MENA.

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)