Fertilisers imports hit, Dhaka eyes new sources
Bangladesh is scrambling to secure alternative fertiliser supplies as the Middle East war involving Iran disrupts imports and shipping routes.
The Bangladesh Chemical Industries Corporation (BCIC) has cancelled two tenders for 200,000 tonnes of urea due to uncertainty over deliveries through the volatile Strait of Hormuz.
With concerns over whether its 17 enlisted suppliers can ensure shipments, BCIC has shifted to an open international tender, inviting global bidder including Singapore-based firms to stabilise supply.
Traditionally reliant on Saudi Arabia, Qatar and the UAE, Bangladesh now plans to diversify sourcing to countries like China, Egypt and Russia, with Russia emerging as a key option.
BCIC Chairman Fazlur Rahman said the move aims to widen participation amid growing uncertainty.
While he assured there would be no shortage during the ongoing Boro season, focus has shifted to securing supplies for the upcoming Aman season, warning that delays could affect agricultural output.
Domestic production remains constrained, with only the Shahjalal Fertiliser Factory currently operational due to gas shortages.
Efforts are underway to restart the Ghorashal-Polash plant and build reserves. Meanwhile, under a government-to-government deal, the UAE has signalled it could supply up to 300,000 tonnes, subject to safe passage through the Strait.
Suppliers report that Middle Eastern imports have nearly halted, while global fertiliser prices have surged sharply urea nearing $700 per tonne, DAP rising to $850, and TSP to $650 further complicating procurement. China’s export halt and sanctions on Russian supplies have tightened the global market, intensifying competition among import-dependent nations.
Bangladesh’s annual urea demand stands at around 2.6 million tonnes, with only about 1 million tonnes produced locally. Overall fertiliser demand exceeds 6 million tonnes, much of it crucial for the Boro and Aman seasons that underpin the country’s food security and rice production.
