Qatar Fertiliser Company (Qafco) has signed an agreement to supply urea to the Indian phosphatic fertiliser producer Coromandel International.

Coromandel is the first Indian company to be granted direct import permission for urea, with Qafco the first to supply the largest producer of phosphatic fertilisers on the subcontinent directly.

The contract has an initial length of three years and can be extended at the end of that period, according to G Ravi Prasad, president, Coromandel.

With the restriction on direct imports lifted, both companies are looking to build on the contract.

“This agreement paves the way for a long-term association with a very reputed international urea manufacturer,” said A Vellayan, chairman, Coromandel.

“India is one of the strategic markets for us and this agreement with Coromandel will pave the way for strengthening Qafco’s presence in the Indian market,” said Khalifa al-Sowaidi, chief executive officer, Qafco.

A growing presence in India will enable Qafco to market its increasing output. The company is currently producing around 3m tonnes of urea per annum. Once it has completed an expansion, it will become the world’s largest single-site producer of urea, according to the company, with a capacity of 5.6m tonnes.