DAP fertiliser plant shut for four months as Bangladesh awaits import approval

Bangladesh’s only DAP fertiliser plant has been shut for nearly four months, the Daily Star reported on Monday.

DAP Fertilizer Company Limited in Anwara, Chattogram, stopped production on 28 June. It has run out of phosphoric acid, a key raw material. The plant also closed for at least a month in April and May because of gas shortages.

Why the DAP fertiliser plant is idle

The Bangladesh Chemical Industries Corporation tendered for 60,000 tonnes of phosphoric acid in three lots of 20,000 tonnes. The lowest bids were $1,079, $1,087 and $1,071.90 per tonne. The total would cost about $64.8 million, or roughly Tk 800 crore.

The proposal went through the Ministry of Industries. It is still awaiting government approval. Officials say prices have risen since March amid Middle East tensions. Bangladesh paid about $750 per tonne earlier this year.

What officials say

Managing director Mainul Haque said the plant had a target of about 100,000 tonnes this fiscal year. It has produced no fertiliser in four months. He said he did not know why the import had not been completed. BCIC director Md Moniruzzaman said the purchase was awaiting approval.

Even after approval, restarting takes time. Officials estimate another one and a half to two months. The plant normally makes about 500 tonnes a day. Its two units have a combined capacity of 800 tonnes a day. It has operated commercially since 2006.

The gap matters for farmers. Annual DAP demand is about 1.507 million tonnes, according to BCIC and the Agriculture Ministry. About 1.4 million tonnes are imported each year. A local plant that cannot run leaves Bangladesh more exposed to import prices.

Gas is not the current obstacle. The government is supplying gas to most fertiliser factories. CUFL, KAFCO, Shahjalal Fertilizer and Ghorashal were receiving it, and Jamuna had received gas until the previous Sunday.

Japanese investors are also looking at Bangladesh this week. Read our report on Tarique Rahman’s Japan visit.

Fact basis: The Daily Star (26 October 2026), by Mohammad Suman. This account relies on that single detailed report. Officials’ statements are as quoted there.