The government has finalised a plan to import five lakh tonnes of urea fertiliser as a precautionary measure amid fears that a prolonged US-Israel war on Iran could disrupt Bangladesh’s fertiliser supply after June.
Apart from urea, Bangladesh is set to sign a contract with Egypt to import DAP and TSP fertilisers, while proposals from several other countries for various fertiliser supplies are under discussion.
The Aman seasons will begin after June. Aman rice accounts for 40 percent of the total annual rice crop, which was estimated around 4 crore tonnes in the fiscal year 2024-25.
Since March 4, the authorities have shut five of Bangladesh’s six urea fertiliser factories amid concerns over gas supply disruptions caused by the war and Iran’s closure of the Strait of Hormuz, a key energy route. With domestic production already meeting only a small portion of demand, the closures have heightened reliance on imports amid global market volatility, rising freight costs, and vessel shortages.
A top official of the Bangladesh Chemical Industries Corporation (BCIC), speaking to The Daily Star on condition of anonymity, said a meeting held a few days ago between the ministries of agriculture, finance, and the Energy Division finalised the decision to procure fertiliser.
The official said that of the five lakh tonnes, three lakh tonnes would be imported through government-to-government arrangements, while the remaining two lakh tonnes would be procured through open tenders.
Discussions are also underway on whether fertiliser can be transported via alternative routes under the existing government-to-government agreement with Saudi Arabia, the official said.
At the same time, preparations are being made to invite local and international tenders, the official added.
Meanwhile, a shipment of urea fertiliser, which was scheduled to reach Bangladesh from the United Arab Emirates, is currently stuck there due to the ongoing war. It is expected that the ship will set sail for Bangladesh once the situation stabilises and a safe maritime route is ensured, the official added.
In Bangladesh, urea fertiliser is produced and imported by the BCIC.
Non-urea fertilisers, such as diammonium phosphate (DAP), Triple Super Phosphate (TSP), and Muriate of Potash (MoP), are imported by the Bangladesh Agricultural Development Corporation (BADC).
Ahmed Faisal Imam, additional secretary for the fertiliser management and monitoring branch at the agriculture ministry, said that at this moment, the country has urea stock until June, while non-urea fertiliser stock will last until October. Currently, there is no fertiliser crisis in the country.
The total fertiliser demand in the country is around 68 to 69 lakh tonnes, of which the demand for urea is 26 lakh tonnes, according to the Department of Agricultural Extension (DAE).
Imam added that an agreement with Egypt is expected to be signed next month.
A BCIC official said China and the UAE have made proposals to sell Bangladesh fertilisers.
Bangladesh usually imports fertilisers from Canada, Russia, Saudi Arabia, China, Morocco, and Tunisia.
Saudi Arabia is one of the main sources of DAP used in Bangladesh. Last year, the BADC purchased 6,00,000 tonnes of the fertiliser from the country and has set a target of importing the same amount this year.
However, due to the closure of the Strait of Hormuz, Bangladesh’s DAP imports from Saudi Arabia have become uncertain.
The official added that Egypt has proposed selling 3 lakh tonnes each of DAP and TSP to Bangladesh.
Discussions are currently underway on importing 3 lakh tonnes of TSP.
In addition, the UAE has offered to supply Bangladesh with 2 lakh tonnes each of TSP, DAP, and MoP fertilisers, saying that the shipments would be sent to Bangladesh from other countries.
Bangladesh had an agreement with China to import 2.80 lakh tonnes of DAP annually. As the agreement has expired, the renewal process is now underway. At the same time, work is progressing on a new deal to raise the annual import target by 40,000 to 3,20,000 tonnes of DAP, the official mentioned.
Imam said that due to the ongoing war, one supply route has been affected, Saudi Arabia. Therefore, Bangladesh has kept several options open. Agreements with several countries have been renewed, and some new deals will also be signed.
Bangladesh imports MoP mainly from Russia and Canada, whose supplies have not been affected by the war. DAP is imported from China, Morocco, and Saudi Arabia, with the majority coming from Morocco. If any disruption occurs with imports from Saudi Arabia, Bangladesh will buy the fertiliser from China and Morocco instead, he said.
According to information from the agriculture ministry, the country’s annual demand for DAP fertiliser is about 15 to 16 lakh tonnes. Of this amount, the DAP Fertiliser Company Ltd produces about 1 lakh tonnes annually.
The remaining demand is met through imports, most of which are handled by the BADC. A small portion is bought by the private sector.
Sources at the BADC’s Procurement Division said it plans to purchase 26 lakh tonnes of fertiliser this year. Of the amount, 11.76 lakh tonnes will be DAP, 8,59,000 tonnes MoP, and 6,50,000 tonnes TSP.
Rafiqul I Mohamed, secretary of the agriculture ministry, told this correspondent that the government is closely monitoring the war and plans to buy fertilisers from other countries.
According to him, farmers are being advised that larger amounts of fertiliser do not necessarily result in higher crop yields.
Rafiqul said the government plans to continue awareness efforts while promoting greater use of organic fertilisers as part of a more holistic agricultural approach.
He said reported demand is often inflated and fertiliser is sometimes overused due to a lack of awareness. By adjusting demand estimates and improving usage practices, he expressed confidence they would be able to manage the upcoming agricultural season even if supplies are somewhat tight.
