Bangladesh ramps up fertilizer imports amid gas crisis and urea plant closures

Faced with a persistent gas crisis that has led to the shutdown of most government-owned urea factories, Bangladesh is actively increasing its fertilizer imports to safeguard its food security. The country’s Adviser Council Committee on Government Purchase, chaired by Finance Adviser Dr. Salehuddin Ahmed, has approved the import of 60,000 metric tonnes of urea from Saudi Arabia and Qatar to bolster stocks for the critical Boro planting season.

The decision comes as Bangladesh grapples with the shutdown of four out of its five urea manufacturing facilities, which has drastically affected the availability of this essential nutrient during the ongoing Aman paddy cultivation. Dr. Salehuddin, addressing the media post-meeting, highlighted the urgency of securing adequate fertilizer supplies as the country transitions from the Aman to the Boro season, the latter requiring substantial fertilizer input.

Under the approved agreements, Bangladesh will import 30,000 tonnes of bulk granular urea from each country, Saudi Arabia and Qatar, costing approximately 1,180 million Bangladesh Taka ($9.85 million or $327.83 per tonne). These imports are part of the government’s broader efforts to ensure a steady supply of nutrients amid production shortfalls.

In addition to urea, the Bangladesh Chemical Industries Corporation (BCIC), under the Ministry of Industries, has outlined plans for further imports to support the nation’s agricultural needs. These include 30,000 tonnes of rock phosphate and 20,000 metric tonnes of Phosphatic acid, essential components for phosphate fertilizer production. The imports will be conducted through international tenders, with the rock phosphate scheduled to arrive at Chattogram Port’s TSP Jetty and the phosphatic acid designated for the DAP Fertilizer Company Limited in Rangadia.

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The import of rock phosphate, tender PUR-3.3207/2024-2025, is set to be delivered in a single shipment on a cost-and-freight basis, with bids opening on October 2, 2024. Similarly, the phosphatic acid under tender PUR-3.3215/2024-2025, scheduled for bid opening on October 22, 2024, will also arrive in a single shipment under similar terms.

Amid these strategic moves, BCIC is also set to import an additional 87,000 metric tonnes of bagged urea from Karnaphuli Fertilizer Company Limited (KAFCO) to meet immediate needs. With the current stock of urea at about 500,000 metric tonnes—sufficient for two months—the urgency to replenish supplies is critical. A senior official from the Department of Agricultural Extension has warned that without these imports, Bangladesh could face a severe urea shortage by December, potentially impacting food production and economic stability in the country.