Iran’s blockade of the Strait of Hormuz has cast doubt on Bangladesh’s fertiliser imports from Saudi Arabia. The Bangladesh Chemical Industries Corporation (BCIC) has urged the government to open diplomatic talks with Tehran to keep cargo vessels moving. Dhaka has also begun scouting alternative sources.
Officials say negotiations with China, Morocco and the United Arabia Emirates on non-urea fertiliser imports are well advanced, with deals likely soon. Separately, to safeguard urea supplies, Bangladesh has held initial talks through embassies with Vietnam, Malaysia and Brunei alongside traditional suppliers.
Bangladesh imports roughly one-third of its di-ammonium phosphate (DAP) fertiliser from Saudi Arabia. A contract for 600,000 tonnes of DAP this year implies monthly shipments of 40,000 tonnes. Only one lot arrived in February. The March consignment never sailed because of the escalating Middle East crisis. A planned 40,000 tonnes for April now hinges on vessel schedules and the resumption of normal navigation through the Strait. Separately, ahead of the Aman planting season, BCIC wants to import 200,000 tonnes of urea from Saudi Arabia.
Rising Middle East tensions threaten to disrupt the fertiliser supply chain, sources say, potentially hurting the country’s agricultural sector. Fears are growing over complications in shipping regular Saudi consignments.
The Bangladesh Shipping Corporation (BSC) handles vessel management for fertiliser imports. Asked this month about arranging ships for DAP imports from Saudi Arabia, the corporation’s general manager (chartering and tramping), Captain Md Mujibur Rahman, told Bonik Barta: “We haven’t yet been told anything about importing DAP from Saudi Arabia in April. Besides, many vessels are stuck in the Strait of Hormuz. So there are bound to be complications bringing goods through that route.”
The Bangladesh Agricultural Development Corporation (BADC) imports non-urea fertilisers such as DAP, MOP and TSP. BCIC on the other hand handles urea production and imports. Industry officials say fertiliser demand will stay relatively low for the next two to three months, so existing low stocks can manage. But demand will rise in July and August, when Aman paddy nurseries are prepared and transplanting begins.
BCIC sources say urea stocks stood at about 359,000 tonnes as of Wednesday last week. Demand through June is 214,000 tonnes. However, during the three-month Aman season from July to September, urea demand will jump to about 665,000 tonnes. To meet this extra demand, the government has already stepped up imports.
The Aman cultivation target this year is about 6 million hectares, aiming to produce roughly 18.1 million tonnes of rice, according to the Department of Agricultural Extension (DAE). Experts fear that failure to keep fertiliser flowing before the country’s second main rice season will threaten food security.
The government has initiated imports of 300,000 tonnes of urea under government-to-government deals and another 400,000 tonnes through international quotation. BCIC hopes to secure 200,000 tonnes from Saudi Arabia and 100,000 tonnes from the UAE. The UAE has already proposed supplying urea via alternative routes avoiding the Strait of Hormuz, though Dhaka is weighing the extra cost and other factors.
BCIC has also written to the government urging action to secure Hormuz passage for continued urea imports from Saudi Arabia. The two countries have a G2G contract for 330,000 tonnes of urea this fiscal year, with an option for an additional 300,000 tonnes if needed.
“There’s no urea shortage for now,” Md Moniruzzaman, director of BCIC’s commercial, production and research wing, told Bonik Barta. “But BCIC wants to import 700,000 tonnes before the Aman season. We plan to bring 200,000 tonnes from Saudi and 100,000 from the UAE under G2G deals. The remaining 400,000 tonnes will come through private imports. We have issued a tender, which will open on April 9.”
The UAE wants to supply fertiliser via alternative routes bypassing the Strait of Hormuz, Moniruzzaman said. “We’re reviewing the costs and other issues. But we have written to the foreign ministry for diplomatic initiatives, including talks with Iran, so that fertiliser vessels can transit the Strait of Hormuz for Bangladesh. We’re also conducting feasibility studies and initial discussions through embassies with Vietnam, Malaysia and Brunei as alternative sources of urea.”
DAE calculates that domestic fertiliser demand in the 2026–27 fiscal year will reach 6.77 million tonnes. That breaks down into 2.62 million tonnes of urea, 901,500 tonnes of TSP, 1.36 million tonnes of DAP, 970,000 tonnes of MOP, and 921,300 tonnes of NPKS, gypsum, zinc sulphate, magnesium sulphate, boron and ammonium sulphate.
As of Wednesday last week, the country held 1.53 million tonnes of fertiliser in stock, said Md Khorshed Alam, joint secretary of the fertiliser management and monitoring sub-division at the agriculture ministry. He told Bonik Barta that stock includes 358,800 tonnes of urea, 366,300 tonnes of TSP, 509,600 tonnes of DAP and 299,500 tonnes of MOP.
Alam noted that there is currently no fertiliser shortage. “The stocks we have will comfortably last several months. There’s no major demand right now. The government is also in touch with various countries to keep supplies normal before the Aman season.”
According to BADC and BCIC sources, Bangladesh mainly imports DAP from Saudi Arabia, China and Morocco. It buys one-third of its DAP and its urea from Saudi Arabia. Morocco and China are major sources of TSP and urea. Morocco’s OCP Group supplies large quantities of TSP and DAP to Bangladesh. Russia plays a key role in supplying MOP, while Canada is also a notable supplier of potash and other fertilisers.
The government has recently intensified talks with various countries after uncertainty over fertiliser imports from Saudi Arabia, driven by the ongoing Middle East crisis. Officials say discussions are underway with China, Morocco and Dubai for new fertiliser imports, alongside renewing existing contracts. The UAE has proposed supplying fertiliser via Morocco and Turkey to bypass the Strait of Hormuz. That opens a route through third countries as well as direct sources. No deal has been finalised yet, but preliminary estimates suggest new contracts with China, Morocco and the UAE could bring 1.5 million to 1.8 million tonnes of DAP, MOP and TSP.
Asked about this, Ahmed Hasan Al Mahmud, general manager (procurement) of BADC, told Bonik Barta: “Global instability persists because of the war. Imports from Middle Eastern countries have largely halted, and other nations also face crises in transport and raw material access. So the government is talking to both traditional and new source countries. We’re planning ahead until March next year. Talks have advanced with three countries on keeping non-urea supplies normal. If price, availability and other terms work out, a deal could come soon.” He added that BADC plans to import one lot of DAP in April from Saudi Arabia.
Five fertiliser plants will remain closed in April including BCIC’s Chittagong Urea Fertiliser, Jamuna Fertiliser Company, Ashuganj Fertiliser and Chemical Company, Shahjalal Fertiliser Company and Ghorashal Polash Fertiliser Public Limited Company, all producing urea. Separately, the multinational Karnaphuli Fertiliser Company Limited (Kafco) also produces urea. Authorities have kept Shahjalal running since March 4 while shutting down Kafco and the other five plants because of a gas shortage.
BCIC has repeatedly written to the energy and mineral resources ministry through the industry ministry to request gas supplies for the closed plants. Unable to secure gas, authorities decided to keep Shahjalal shut and restart the Ghorashal Polash Fertiliser Public Limited Company instead. That plant, with a daily capacity of 2,800 tonnes, came back to production two days ago. Authorities then closed Shahjalal on Friday, which can produce 1,300 tonnes a day. All plants will remain closed for the entire month of April, according to BCIC director Md Moniruzzaman.
Agricultural economists advise boosting domestic production and seeking alternative suppliers that can deliver on time to avoid shortages and mitigate risk. “Bringing fertiliser from the Gulf countries is very risky right now,” Dr Jahangir Alam, an agricultural economist, told Bonik Barta. “No one knows when the Strait of Hormuz will return to normalcy. So to keep at least urea supplies steady, it’s essential to keep domestic fertiliser plants running. If necessary, gas should be diverted from less critical users to run these plants. That would reduce import dependence and ease supply worries. We must also find alternative countries to keep the supply chain normal.”
The war has pushed up global fertiliser prices. According to Trading Economics, urea now costs $690 per tonne and DAP more than $692. The government will therefore need extra funds to buy fertiliser for the coming season. Shipping freight rates have also risen.
The agriculture ministry, BADC and BCIC have indicated that buying new fertiliser will cost the government more. A formal demand note estimating the increase has not yet been prepared.
Agriculture secretary Rafiqul E Mohamed told Bonik Barta there is no fertiliser shortage at the moment, though there is no guarantee this will hold. “We’re preparing in advance and engaging potential new sources through our missions abroad,” he said. “Imports will be sourced where Bangladesh benefits across quality, supply assurance and financial terms. A final decision is expected by April 20.”
He added that plans are also in place to bring in fertiliser via alternative routes that avoid the Strait of Hormuz, with discussions underway across government agencies. An alternative routing plan is expected to be set soon.