Bangladesh’s only state-owned diammonium phosphate (DAP) fertiliser plant has remained shut for the past 20 days after running out of phosphoric acid, the key raw material used in production.
The DAP Fertiliser Company Limited (DAPFCL) in Anwara, Chattogram, suspended production at 8am on 28 June after exhausting its emergency stock, as disruptions to global supply chains caused by Middle East geopolitical tensions and the US-Iran conflict delayed imports from major suppliers, including Jordan.
According to Bangladesh Chemical Industries Corporation (BCIC) officials, a January international tender for importing 20,000 tonnes of phosphoric acid was awarded to local contractor RK Enterprise, with delivery scheduled by June. However, the shipment did not arrive on time.
Fresh tenders floated on 8 and 23 June also failed to attract bidders amid continued volatility in the international market. Two more tenders are now scheduled to open on 8 August and 9 September.
The plant has a daily production capacity of 500 tonnes of DAP fertiliser and requires around 600 tonnes of phosphoric acid and more than 200 tonnes of ammonia each day.
DAPFCL Managing Director Moinul Haque said, “Production has been suspended temporarily after the available stock of phosphoric acid was exhausted due to disruptions in the international supply chain. However, administrative and maintenance activities at the plant are continuing as usual.”
He added that the supply agreement with the contractor remains valid and production will resume as soon as the phosphoric acid shipment arrives.
Bangladesh’s annual fertiliser demand is around 6.9 million tonnes, with nearly 80% met through imports.
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