A gas crisis has idled all but one of Bangladesh’s urea fertiliser plants, and reserves have slipped below the safety threshold. The state-run Bangladesh Chemical Industries Corporation (BCIC) now plans to import 200,000 tonnes of urea through private channels before the Aman season begins. It has already called two rounds of tender so far. Supplier interest has been scant however, prompting BCIC to weigh a third round, multiple senior officials said.
The first international tender drew no bids at all, according to BCIC sources. A second tender yielded offers for only 50,000 tonnes — a quarter of the volume Dhaka sought.
Officials familiar with the process attribute the weak response to the closure of the Strait of Hormuz, a casualty of the US–Iran war that has blocked shipping and triggered uncertainty over fertiliser supply. They said suppliers fear reputational damage if they commit to deliveries they cannot honour on time.
“We’ve received bids from two companies. They want to supply 50,000 tonnes of urea — 25,000 tonnes each. Those tenders are under evaluation,” Md Saiful Alam, BCIC’s general manager for procurement, told Bonik Barta.
Bangladesh consumes roughly 2.6 million tonnes of urea a year. In the current 2025–26 fiscal year, imports so far stand at 1,314,388 tonnes. Yet the agriculture ministry data show stocks had fallen to 343,000 tonnes last Sunday, well below the 400,000-tonne level deemed safe.
BCIC has called an open tender for 200,000 tonnes of urea to build stocks ahead of the Aman planting season. It is simultaneously pursuing government-to-government deals with Saudi Arabia and the United Arab Emirates for an additional 300,000 tonnes. Any deliveries, however, hinge on the resumption of normal shipping through the Strait of Hormuz.
Md Moniruzzaman, BCIC director (commercial, production and research), told Bonik Barta: “No company took part in the first tender. The bids we received in the second round are now being evaluated. If necessary, we’ll call another tender.”
The import scramble follows a gas crisis that began after the United States and Israel launched military strikes against Iran on February 28. The resulting supply shock forced the closure of four of BCIC’s five urea plants and the multinational Karnaphuli Fertilizer Company (KAFCO) from March 4. The subsequent ammonia shortage has also idled Bangladesh’s sole DAP fertiliser factory. Only the Ghorashal–Polash plant in Narsingdi, with a daily capacity of 2,800 tonnes, remains operational.
Bangladesh once produced nearly 80 percent of its urea requirement. Output has since eroded, deepening import dependence. Industry insiders say domestic production now satisfies less than a third of the demand. BCIC handles both fertiliser manufacturing and imports.
The country sources urea mainly from Saudi Arabia, the UAE, China and Qatar. As the Middle East turmoil threatens supply lines, Dhaka has begun scouting alternative sources. It has already held discussions with Vietnam, Malaysia and Brunei, and preliminary talks have taken place with Russia and Bahrain, officials said.
Data from the agriculture ministry and the Department of Agricultural Extension project urea demand in the upcoming 2026–27 fiscal year at 2,622,000 tonnes. The Aman rice season alone, which begins in July, will require 665,000 tonnes.
Experts argue the Middle East crisis has snarled global supply chains, leaving Bangladesh no choice but to raise domestic fertiliser output by any means rather than bank on imports.
“Global fertiliser prices have risen, pushing up costs. It’s only natural that private suppliers will show less enthusiasm for tenders,” agricultural economist Dr Jahangir Alam told Bonik Barta.
“BCIC was never meant to import. The corporation was created to produce. It once made up to 1.9 million tonnes of urea — nearly 80 percent of the country’s requirement. Now that equation has been reversed. Annual output has shrunk to 800,000 to 1,000,000 tonnes. Imports cover roughly 80 percent of demand,” he said.
Dr Alam insisted only a production ramp-up could end the shortage. “If we run the plants on imported gas, producing fertiliser domestically will still cost one-third less than buying it abroad. To save money and resolve the supply crisis, there is simply no substitute for higher production.”