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The Government of Bangladesh has approved the import of 70,000 metric tonnes of fertilizer under state-level agreements with Morocco and Karnaphuli Fertilizer Company Limited (KAFCO). The total cost of the purchase will be Tk 477.23 crore (Tk 4.77 billion).
The decision was made at a meeting of the Cabinet Committee on Government Purchase (CCGP) held on Tuesday at the Secretariat. The meeting was chaired by Finance Advisor Dr Salehuddin Ahmed.
According to meeting sources, the Ministry of Agriculture proposed the import of 40,000 metric tonnes of DAP (Diammonium Phosphate) fertiliser from Morocco under a state-level contract. The committee reviewed and approved the proposal.
The Bangladesh Agricultural Development Corporation (BADC) has an existing agreement with Morocco for the import of DAP fertiliser, which was renewed on September 18, 2023, maintaining the original terms and pricing mechanism. Based on current international market prices, the proposed cost for importing 40,000 tonnes of DAP is $26.6 million, or approximately Tk 324.52 crore. The per-tonne price has been set at $665. The government’s target for DAP import from Morocco in the 2024–25 fiscal year is 427,000 tonnes, of which 339,000 tonnes have already been imported.
In the same meeting, the Ministry of Industries proposed the purchase of 30,000 metric tonnes of bagged granular urea fertiliser from KAFCO, Bangladesh. The committee also approved this proposal.
As per a revised agreement for the 2024–25 fiscal year, the government plans to procure 540,000 tonnes of urea from KAFCO. Following a request for a price offer, KAFCO quoted a rate of $417.25 per tonne. The total cost for the 30,000 tonnes will amount to $12.517 million, or about Tk 152.71 crore. The government’s total urea procurement target for the fiscal year is 3.2 million tonnes, of which 540,000 tonnes will be sourced from KAFCO.
