Bangladesh approves fertiliser, LNG and jute sack purchases

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Bangladesh procurement approvals

Highlights

Bangladesh approved importation of 80,000 tonnes of muriate of potash from Canada at $382.38 per tonne, costing Tk1,888,957,200 per shipment.
Government authorized purchases of 70,000 tonnes of muriate of potash from Russia at $382.38 per tonne, with costs of Tk1,654,175,880 and Tk1,655,514,210 for the respective shipments.
Cabinet Committee approved one LNG cargo from QatarEnergy for delivery around 23 December at $0.10 per MMBtu below the existing long-term contract price.

Procurement package spans fertiliser and energy supply

As reported by The Business Standard, the Cabinet Committee on Government Purchase has recommended approval of six procurement proposals, including four from the Ministry of Agriculture, one from the Ministry of Food and one from the Energy and Mineral Resources Division.

Under the agriculture ministry's proposals, the government will import 80,000 tonnes of muriate of potash from Canada and 70,000 tonnes from Russia. Two shipments from the Canadian Commercial Corporation, a Canadian government agency, each cover 40,000 tonnes priced at $382.38 per tonne, with an estimated cost of Tk1,888,957,200 for each shipment.

The Russian purchases cover a total of 70,000 tonnes from JSC Foreign Economic Corporation Prodintorg. Each proposal covers 35,000 tonnes at $382.38 per tonne, with estimated costs of Tk1,654,175,880 and Tk1,655,514,210, respectively.

The committee also recommends buying one LNG cargo from QatarEnergy Trading LLC under a long-term agreement. The cargo is scheduled for delivery around 23 December at a price $0.10 per MMBtu below the existing long-term contract price based on the Japan Korea Marker benchmark.

Food logistics and supply chain implications

The procurement package also includes a proposal from the Directorate General of Food to buy 10 million jute sacks with a 30kg capacity each through an open tender under the e-GP system. The order will be split into 50 packages, with 13 companies recommended for the contracts, for a total value of Tk644,184,800.

The purchases show the government's continued reliance on international supply agreements for key agricultural inputs and fuel, while also supporting domestic food handling capacity through large-volume packaging procurement. Together, the approvals are aimed at maintaining fertiliser availability, securing energy imports and supporting public food distribution operations.

In our earlier report on the UN-backed plan to move fertilizer through the Strait of Hormuz, we explained that the mechanism was still awaiting a U.S.-Iran agreement, keeping key urea and sulphur flows from the Gulf constrained. We noted that prolonged disruption risked higher fertilizer costs, missed planting windows in import-dependent countries, and knock-on price increases across agricultural commodities and food products.

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