Sole DAP fertiliser plant shut over raw material shortage

The country’s only state-owned diammonium phosphate (DAP) fertiliser plant has remained shut since June 28 after failing to secure phosphoric acid through multiple tenders, raising concerns over fertiliser supplies for agriculture.

Officials said the shutdown at DAP Fertilizer Company Limited (DAPFCL) in Anwara, Chattogram, followed a shortage of phosphoric acid, a key raw material, after repeated import efforts failed amid global supply disruptions.

Tap Here to Add The Daily Star As A Trusted Source

The plant, in commercial operation since 2006, has two units capable of producing 800 tonnes of fertiliser per day.

“Phosphoric acid and ammonia are the two main raw materials for producing DAP fertiliser,” said Rabiul Alam Khan, deputy general manager (commercial) of DAPFCL.

He told The Daily Star that ammonia is sourced locally from Chittagong Urea Fertilizer Limited (CUFL) and Karnaphuli Fertilizer Company Ltd (KAFCO), while phosphoric acid is imported through tenders.

DAPFCL floated a tender in January to import 20,000 tonnes of phosphoric acid, but the chosen supplier failed to deliver.

The Bangladesh Chemical Industries Corporation (BCIC) invited two more tenders on June 8 and June 23, but got no bids amid market instability linked to renewed conflict in the Middle East, Khan said.

BCIC has floated two fresh tenders, to be opened on August 8 and September 9.

A prolonged shutdown could hit domestic supplies and deepen import reliance, officials said.

Despite earlier ammonia shortages halting output for 58 days this year, DAPFCL produced around 82,000 tonnes of DAP against its 100,000-tonne target in FY26.

The company has again set a 100,000-tonne target for the current fiscal year but fears missing it as production has already stopped.

Bangladesh’s annual fertiliser demand is 65 lakh to 69 lakh tonnes, including 15 lakh tonnes of DAP, according to BCIC and the agriculture ministry. The country imports around 14 lakh tonnes of DAP annually, mainly from Morocco, Tunisia, China and Saudi Arabia.