Government to Procure 110,000 Tons of Fertilizer at a Cost of BDT 850.50 Crore

The government has approved the import of 110,000 metric tons of fertilizer from China, Saudi Arabia, and the United Arab Emirates under state-to-state agreements. This includes 30,000 metric tons of urea and 80,000 metric tons of DAP (Diammonium Phosphate) fertilizer, with a total expenditure of BDT 850.50 crore.

The approval was granted during a meeting of the Advisory Committee on Government Procurement, chaired by Finance Adviser Dr. Salehuddin Ahmed, held at the Secretariat’s conference room on Tuesday (July 1).

According to sources, based on a proposal from the Ministry of Industries, the Advisory Committee approved the import of 30,000 metric tons of bulk granular urea fertilizer from the United Arab Emirates. This will cost USD 11.565 million, equivalent to BDT 141.09 crore in Bangladeshi currency. The price per metric ton of urea is set at USD 385.50. The Ministry of Agriculture presented two additional proposals for fertilizer procurement. Under one proposal, the committee approved the import of 40,000 metric tons of DAP fertilizer from China through a state-level agreement. The Bangladesh Agricultural Development Corporation (BADC) signed an agreement with China on January 10 for fertilizer imports, which received prior policy approval from the Cabinet Committee on Economic Affairs. Based on the pricing mechanism outlined in the agreement, the first batch of 40,000 metric tons (+10%) of DAP fertilizer will be imported at a cost of USD 29.17 million, equivalent to BDT 358.20 crore. The price per ton of DAP fertilizer is set at USD 729.25, based on current international market rates. Under another proposal from the Ministry of Agriculture, the committee approved the import of 40,000 metric tons of DAP fertilizer from Saudi Arabia through a state-level agreement. This will cost USD 28.6Centering on fertilizer procurement, the Ministry of Agriculture brought forward two additional proposals. One of these led to the approval of importing 40,000 metric tons of DAP fertilizer from China under a state-level agreement. The Bangladesh Agricultural Development Corporation (BADC) had signed a contract with China on January 10 for fertilizer imports, which was pre-approved by the Cabinet Committee on Economic Affairs. Following the pricing mechanism specified in the contract, the decision was made to import the first batch of 40,000 metric tons (+10%) of DAP fertilizer, costing USD 29.17 million, equivalent to BDT 358.20 crore in Bangladeshi currency. The price per ton of DAP fertilizer is set at USD 729.25, reflecting current international market rates.

Additionally, based on another proposal from the Ministry of Agriculture, the committee approved the import of 40,000 metric tons of DAP fertilizer from Saudi Arabia under a state-level agreement. This will cost USD 28.6 million, equivalent to BDT 351.20 crore. The price per ton of DAP fertilizer is set at USD 715.