State-owned DAP fertiliser plant shut for 20 days amid raw material shortage
A 20,000-tonne phosphoric acid shipment, due in June, failed to arrive on time, Bcic officials say.
The country's only state-owned di-ammonium phosphate (DAP) fertiliser factory 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 in Anwara, Chattogram, suspended production on 28 June after depleting its emergency stock, as Middle East tensions and the US-Iran conflict disrupted global supply chains, delaying imports of key raw materials from major suppliers, including Jordan.
According to officials of the Bangladesh Chemical Industries Corporation, an international tender floated in January for the import of 20,000 tonnes of phosphoric acid was awarded to local contractor RK Enterprise, with delivery scheduled for June. However, the shipment did not arrive on time.
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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.
Moinul Haque, managing director of the fertiliser company, 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.
DAP production requires phosphoric acid and ammonia. Bangladesh's annual fertiliser demand is around 6.9 million tonnes, with nearly 80% met through imports.
