International market operations have been an integral part of the Indian fertilizers policy. Major focus on this policy came during the liberalization of P and K fertilizers and allowing overseas investment for N, P and K fertilizers. Since the markets of P and K fertilizers are not very competitive and India continues to depend on imports, there is a need for ensuring availability of P and K fertilizers, including their raw material, at a competitive price. This is more so when policy environment is quite uncertain or hostile in the countries with P and K reserves. Therefore, it was necessary to examine the international scenario of P and K fertilizers for evolving a sound trade and investment policy. The study has used available evidence on domestic and international scenario of P and K fertilizers and their raw material. Trends in international prices were also examined in the context of the emerging supply scenario. The perspective of fertilizer industry and experiences of joint ventures were also studied. Great efforts were made to study the international operations of other sectors, particularly, petroleum products, minerals, steel and coal, to learn from their experiences. The study also drew inferences from the experiences of Indian foreign policy in such matters and other international experiences and policies for overseas investment and trade. The study has made several useful recommendations on importing P and K fertilizers, establishing joint ventures and role of the government in ensuring fertilizer supply. The basic premise is that the current international fertilizer scenario is quite positive in terms of both availability of the material and prices, and therefore, market forces shall ensure the supply of fertilizers in India. The Government should play a facilitating role in terms of establishing joint ventures and contracts and this role should be nondiscriminatory and preferably non-financial, except in cases of high risk and exigencies. Comments of the readers shall be helpful in developing a long-term fertilizer policy of the Government.