Bangladesh cancels urea tenders amid war-linked supply disruptions
Shipping risks through Strait of Hormuz force Dhaka to seek global suppliers as fertilizer prices surge
DHAKA, Bangladesh (MNTV) — Bangladesh has cancelled two international tenders to import 200,000 tonnes of urea fertilizer due to supply uncertainties caused by the ongoing conflict involving Iran, officials said.
The disruption is linked to rising security risks in the Strait of Hormuz, a key maritime route for fertilizer exports from the Middle East. Suppliers have expressed concerns over their ability to safely transport shipments through the region.
The Bangladesh Chemical Industries Corporation (BCIC) has now issued a fresh open international tender, inviting global suppliers to participate, including firms based in Singapore. The move marks a shift from a previously restricted supplier list.
Bangladesh traditionally imports fertilizer from Middle Eastern countries such as Saudi Arabia, Qatar and the United Arab Emirates. However, ongoing instability has forced authorities to explore alternative sources, including China, Egypt and Russia.
BCIC Chairman Fazlur Rahman said the earlier tenders were cancelled due to uncertainty among registered suppliers. He added that the government is working to diversify sourcing options to ensure uninterrupted supply.
Despite the disruptions, officials said there would be no immediate fertilizer shortage during the ongoing Boro crop season. However, concerns remain over securing adequate supplies ahead of the Aman season, which begins in June.
“If we fail to ensure timely imports, it could impact agricultural production,” Rahman said.
Domestic production has also been affected, with most fertilizer factories shut due to gas shortages. Currently, only the Shahjalal Fertilizer Factory is operational. The government is attempting to restore gas supply to the Ghorashal-Polash plant to increase local output.
Under a government-to-government arrangement, the United Arab Emirates has indicated it could supply up to 300,000 tons of fertilizer, subject to safe shipping conditions through the Strait of Hormuz.
Meanwhile, global fertilizer prices have risen sharply amid supply constraints. Urea prices have climbed to nearly $700 per ton, while diammonium phosphate (DAP) and triple super phosphate (TSP) have also seen significant increases.
Industry sources said imports from the Middle East have slowed considerably, while China’s temporary halt on fertilizer exports and sanctions affecting Russian supplies have further tightened the global market.
Bangladesh requires around 2.6 million tons of urea annually, with domestic production meeting less than half of the demand. The remainder depends on imports, making the country vulnerable to global supply disruptions.
Fertilizer is a critical input for Bangladesh’s agricultural sector, particularly for rice production, which underpins the country’s food security.
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