Major fertiliser suppliers across the world have stopped their shipments to Bangladesh and canceled scheduled consignments due to the non-payment of outstanding import bills in time, according to sources.
The government owes the suppliers of China, Saudi Arabia, Canada and Morocco a sum total of $80 million in bills, including shipping rent, they say.
The issue of further freight has also become uncertain due to non-payment of dues against fertiliser imports, reads an agriculture ministry document.
Over the past three months, an estimated 0.6-million tonnes of such chemical items have not been imported to Bangladesh.
To address the issue, agriculture adviser Lt Gen (retd) Md Jahangir Alam Chowdhury last week sought finance adviser Dr Salehuddin Ahmed's intervention to take measures to pay dues.
With the current stocks of triple super phosphate (TSP) and di-ammonium phosphate (DAP), agri ministry hopes, it will be possible to meet the domestic fertiliser demand until November 2024.
It predicts a possible acute crisis of the fertilisers from late December 2024.
The ministry, therefore, fears if fertilisers are not imported on an urgent basis, problems like fertiliser scarcity may arise in the coming Robi season.
Shortages of such chemicals will severely disrupt agricultural production and may lead to anarchy across the country, according to the adviser's letter.
Mr Alam also requested Mr Salehuddin to direct Sonali Bank to open LCs for importing such items alongside instructing private commercial banks to withdraw 100-per cent LC margin provision.
The demand for urea, TSP, DAP and MoP are 2.7 million, 0.75 million, 1.5 million and 0.95 million tonnes respectively for fiscal 2024-25.
The rest, 0.2/0.3-million tonnes, is imported by the ministry concerned through private channels.
The Bangladesh Agricultural Development Corporation (BADC) plays a key role in importing non-urea fertilisers as it imports through foreign agencies under government contracts against government guarantees.
Non-urea fertilisers like TSP, DAP and MoP are chiefly imported by opening letters of credit (LCs) with state banks. The BADC opens LCs through Sonali Bank. Janata Bank is also there to help it out.
In the current economic situation, some problems have become evident in the import of fertilisers which need to be addressed quickly.
Against the backdrop of the foreign-exchange crisis, Sonali Bank suspended the opening of LCs from June 2024.
The BADC then proposed setting up LCs through Islami Bank that declined to open LCs without a 100-per cent margin. In a September 05 meeting, it was decided to open LCs at tolerable level in case of fertiliser imports, as the BADC does not have its own funds.
The meeting also decided a set of proposals to ease fertiliser imports.
When contacted, additional agriculture secretary Dr Nurun Nahar Chowdhury says outstanding bills are being paid gradually.
The next shipment can be started only after payment of import dues and shipping charges. Consignments take a minimum of three months to reach Bangladesh from those countries, according to a meeting source.
The delay in paying dues will also delay next shipments that may lead to fertiliser supply crunch during the peak season.
The receipt of shipment schedule for fertiliser imports is also currently in a state of complete uncertainty.
To ensure agricultural production and food security, the government has long been subsidising urea, TSP, DAP and muriate of potash (MoP).
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