One-third of Bangladesh’s DAP imports come from Saudi Arabia, supply may be at risk amid Middle East crisis

Experts warn that if imports from Saudi Arabia remain suspended due to the Middle East crisis and alternative sources are not secured, the DAP supply chain could collapse.

Saudi Arabia is one of the sources of diammonium phosphate (DAP) fertiliser for Bangladesh. In 2025, the Bangladesh Agricultural Development Corporation (BADC) imported 600,000 tonnes of DAP from the country. The same volume is targeted for import this year. However, Bangladesh’s DAP imports from Saudi Arabia have become uncertain as the Strait of Hormuz has been closed amid the ongoing conflict in the Middle East. Although a lot of 40,000 tonnes of DAP was scheduled to be imported this month, BADC has decided not to bring it in. The state-run agency claims there is no need to import DAP in March as the country currently has sufficient stocks. However, a BADC source told Bonik Barta that discussions are underway with alternative source countries due to the Middle East crisis. China and Egypt have already offered to supply DAP to Bangladesh.

Stakeholders in the agriculture sector say DAP is the second most widely used fertiliser in the country after urea. It is mainly required during land preparation and at the early stages of cultivation. While there has been no shortage of DAP during the ongoing boro season, demand will increase when the aman season begins in June. Experts warn that if imports from Saudi Arabia remain suspended due to the Middle East crisis and alternative sources are not secured, the DAP supply chain could collapse.

Agricultural economist Dr Jahangir Alam told Bonik Barta, “DAP fertiliser is mainly required during land preparation. With the aman and aus seasons approaching, we must consider the issue in advance. If the Middle East crisis isn’t resolved, we’ll have to ensure supplies from alternative sources.”

He added, “Shipping through the Strait of Hormuz is facing obstacles. As a result, global transport of fertilisers and fuel used for irrigation is being disrupted, pushing up prices. Farmers in Bangladesh have already complained of fertiliser shortages since the beginning of the boro season. They’re buying fertiliser at higher prices and receiving less than their required amount. In such a context, any disruption in the supply chain could severely affect agricultural production.”

According to the Ministry of Agriculture and related sources, Bangladesh’s annual demand for DAP fertiliser stands at around 1.5–1.6 million tonnes. Of this, the DAP Fertilizer Company Limited (DAPFCL), under the Bangladesh Chemical Industries Corporation (BCIC), produces about 100,000 tonnes annually. The remaining demand is met through imports, most of which are handled by BADC, while a small portion is imported by the private sector.

Sources in BADC’s procurement division said the agency plans to import 2.6 million tonnes of fertiliser this year (January–December). Of this, around 1.17 million tonnes will be DAP. The rest includes 859,000 tonnes of muriate of potash (MOP) and 650,000 tonnes of triple super phosphate (TSP).

Bangladesh mainly imports DAP from Saudi Arabia, China, and Morocco. Last year, 280,000 tonnes were imported from China. To ensure safe stocks of non-urea fertilisers, BADC signed a deal with Saudi company Ma’aden in December 2024 to import 600,000 tonnes of DAP annually. Under the agreement, BADC purchased 600,000 tonnes in 2025 and plans to import the same amount from January to December this year.

BADC said one lot of 40,000 tonnes is scheduled to arrive each month from Saudi Arabia. At this rate, 480,000 tonnes would arrive in monthly shipments, while the remaining quantity would be purchased at any time during the year to fulfil the 600,000-tonne quota. However, the January lot departed in late February and arrived in Bangladesh in early March. Although another lot was scheduled for March, BADC has informed the supplier that it will not take the shipment this month. The agency plans to resume purchases from the company again in April.

BADC General Manager (Procurement) Ahmed Hasan Al Mahmud told Bonik Barta that the March shipment was not being taken as existing stocks are sufficient compared to demand. He said, “Signing a contract doesn’t necessarily mean we must take every shipment. The agreement ensures supply availability. We expect to import the full 600,000 tonnes from Saudi Arabia this year. BADC currently has adequate stocks. Therefore, although one lot was scheduled for March, we’re not taking it. We’ll resume imports in April. Fertiliser imports usually vary throughout the year depending on demand.”

Mohammad Khosru Noman, manager (transport) at BADC’s Fertiliser Management Division, told Bonik Barta that one lot of DAP from Saudi Arabia arrived in Bangladesh in early March. “A shipment imported from Saudi Arabia reached the country on March 3,” he said.

In Bangladesh, urea fertiliser is produced and imported by the Bangladesh Chemical Industries Corporation (BCIC). Non-urea fertilisers — DAP, MOP, and TSP — are imported by BADC. The 100,000 tonnes of fertiliser produced by DAP Fertilizer Company Limited (DAPFCL) are distributed to dealers according to the demand and directives of the Ministry of Agriculture.

Sources said Bangladesh imports fertiliser from three Middle Eastern countries — Saudi Arabia, Qatar, and the United Arab Emirates. Urea is imported from Qatar and the UAE, while both urea and DAP are imported from Saudi Arabia. Due to complications in shipping through the Strait of Hormuz, the government is considering increasing fertiliser imports from alternative sources. Proposals from China and Egypt to supply fertiliser are also under discussion. However, officials said these offers were not made specifically due to the Middle East crisis, as the countries had proposed them earlier. Bangladesh is now reviewing the proposals to secure the best possible terms.

A senior BADC official, speaking on condition of anonymity, told Bonik Barta, “Bangladesh previously had a contract with China to import 280,000 tonnes of DAP annually. As the contract has expired, the renewal process is currently underway. At the same time, work is progressing on a new agreement that aims to increase the annual import volume by 40,000 tonnes, raising the target to 320,000 tonnes.”

He added, “Egypt has offered to export 300,000 tonnes each of DAP and TSP. Discussions are ongoing regarding the import of 300,000 tonnes of TSP. As the proposal for DAP was made informally, discussions on that issue haven’t progressed much.”

Sources also said Dubai has proposed supplying 200,000 tonnes each of TSP, DAP, and MOP fertiliser to Bangladesh, potentially sourcing the fertilisers from other countries. Discussions over these proposals are also underway.

The Ministry of Agriculture said existing fertiliser stocks in the country are sufficient to sustain farming activities until May or June. Officials added that the Middle East crisis is unlikely to cause any immediate fertiliser shortage and that discussions over imports are part of routine procurement processes.

On March 6, Joint Secretary of the ministry’s Fertiliser Management & Monitoring Branch, Md Khorshed Alam, told Bonik Barta, “The country currently has 481,000 tonnes of urea, 383,000 tonnes of TSP, 471,000 tonnes of DAP, and 349,000 tonnes of MOP in stock. This volume of fertiliser will be enough to maintain supply until May or June.”

Alongside imports, urea, TSP, and DAP fertilisers are also produced domestically. However, fertiliser production at five of the country’s six urea factories has remained suspended since March 4 due to a gas shortage. The TSP and DAP factories, however, remain operational.

Rabiul Alam Khan, deputy general manager (commercial) at the state-run DAPFCL, told Bonik Barta, “Our factory has an annual production capacity of 140,000 tonnes of DAP. However, the production target for the current fiscal year is 100,000 tonnes. So far, 48,000 tonnes have been produced.”

Attempts to reach BADC Chairman Md Azizul Islam for comments by phone were unsuccessful.

Agriculture Secretary Rafiqul I Mohammad told Bonik Barta, “At the moment, there is no fertiliser shortage in the country. Preparations will be taken in advance to ensure that the next cropping season is not affected.”

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