Bangladesh Exploring New Fertilizer Sources Amid Global Supply Concerns

Bangladesh has started looking for alternative sources of fertilizer imports as global supply chains face disruption due to tensions in the Middle East. A significant portion of the world’s fertilizer shipments—around 30–35%—normally pass through the Strait of Hormuz. However, following recent conflict involving Iran, traffic through the route has been severely restricted, raising concerns about future availability.

Government officials say the country currently has enough fertilizer reserves to meet demand until June. Still, authorities are taking precautionary steps to secure supplies for upcoming agricultural seasons.

The Ministry of Industries has requested the Ministry of Foreign Affairs to assess the feasibility of importing fertilizer from new markets. Bangladesh missions in Malaysia, Brunei, and Vietnam have already begun evaluating potential opportunities. If the response is favorable, imports from these countries may be initiated. At the same time, the Ministry of Agriculture is also exploring options in Brazil and China.

According to Agriculture Secretary Rafiqul Islam, the country’s existing stock is sufficient for now, but efforts are underway to identify the most cost-effective sources for future imports.

Fertilizer imports are mainly handled by two government bodies: BCIC, which deals with urea, and BADC, which imports non-urea fertilizers such as TSP, DAP, and MOP.

Although current reserves may prevent an immediate shortage, experts warn that delays in imports could impact Aman rice production—the country’s second-largest rice crop season. This year’s Aman production target is set at 18.1 million metric tons, with cultivation expected across approximately 6 million hectares.

Recent data shows that Bangladesh has substantial reserves of non-urea fertilizers, including TSP, DAP, and MOP. However, urea stock levels remain slightly below the ideal safety threshold.

Authorities are also planning additional imports, including open tenders and government-to-government deals with countries like Saudi Arabia and the UAE. However, much of this depends on whether shipping through the Strait of Hormuz returns to normal.

Officials note that fertilizer sourcing decisions are being made based on overall cost, including both product price and transportation expenses. For example, while fertilizers from Brazil may be cheaper, higher shipping costs could make them less competitive.

Domestic production has also fallen short of targets this fiscal year due to gas shortages affecting fertilizer factories. Efforts are ongoing to restore full operations, including ensuring gas supply to major plants such as the Ghorashal-Polash facility in Narsingdi.

Meanwhile, global fertilizer prices are rising sharply. Urea prices have increased significantly compared to earlier this year, and similar trends are seen in DAP prices. According to international agencies, ongoing geopolitical tensions could lead to supply shortages in countries like Bangladesh, India, Pakistan, and parts of Africa, potentially driving up food prices.

Officials emphasize that fertilizer import planning must be done well in advance, as it takes around six months for shipments to reach farmers. The current efforts aim to ensure smooth supply ahead of the next Boro season starting later this year.