Bangladesh approves fertiliser purchases for 2026-27 supply

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Bangladesh fertiliser purchases 2026-27

Highlights

Bangladesh approves purchase of 30,000 tonnes urea from Kafco at $408.375 per tonne and 40,000 tonnes from SABIC at $431.67 per tonne for 2026-27.
The cabinet committee also approves import of 20,000 tonnes phosphoric acid for DFCL at $1,087 per tonne from Genttrade FZE, with estimated cost Tk285 crore.
Urea demand for 2026-27 is estimated at 30 lakh tonnes, with Kafco expected to supply 5.50 lakh tonnes as part of government procurement plans.

Procurement terms and approved suppliers

As reported by The Business Standard, the Cabinet Committee on Government Purchase approves the proposals at a meeting chaired by Finance Minister Amir Khosru Mahmud Chowdhury at the Secretariat on 19 October.

Under the approval, 30,000 tonnes of bagged granular urea are being purchased from Karnaphuli Fertiliser Company Limited, or Kafco, for Tk151.30 crore at $408.375 per tonne. Another 40,000 tonnes of bulk granular urea are being procured from Saudi Arabia's SABIC Agri-Nutrients Company for Tk213.24 crore at $431.67 per tonne.

The urea purchases are proposed by the Ministry of Industries and are being implemented through the Bangladesh Chemical Industries Corporation, with the cost covered by allocations under the Ministry of Agriculture's subsidy budget. The committee also approves the import of 20,000 tonnes of phosphoric acid for Chattogram-based DAP Fertiliser Company Limited at an estimated cost of Tk285 crore, or $1,087 per tonne.

The phosphoric acid is being purchased from UAE-based Genttrade FZE through an international open tender. Only one company participates in the tender and is found technically acceptable, while the purchase is being implemented through BCIC and financed from the government's own funds.

Supply planning and fertiliser production impact

Documents presented at the meeting show Bangladesh's urea demand for the 2026-27 fiscal year is estimated at 30 lakh tonnes. The government plans to procure 5.50 lakh tonnes from Kafco during the year, indicating the latest approval forms part of a broader supply programme.

For DAP production, the current fiscal year's target of 1.40 lakh tonnes requires a total of 165,800 tonnes of phosphoric acid. That makes the latest import approval an operational input for DFCL's output plan and highlights the government's continued reliance on both domestic and imported fertiliser supply channels.

In our earlier report on the UN-backed plan to restore fertilizer shipments through the Strait of Hormuz, we explained that the mechanism remains stalled because it still requires a U.S.-Iran agreement. We also noted that prolonged disruption could keep urea flows from the Gulf constrained, pushing up fertilizer and food prices and raising food-security risks for import-dependent regions in Asia and Africa.

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