Several government agencies, including the agriculture ministry and the BCIC, have sounded the alarm over a possible crisis of fertilisers next January during the Rabi season.
The state-owned Bangladesh Chemical Industries Corporation (BCIC) is worried about the stock of fertilisers.
The agencies have suggested increasing the stock of necessary fertilisers, including supply of required gas to the closed fertiliser units, and importing 0.3/?.4 million tonnes of such items immediately.
An inter-ministerial meeting organised by the BCIC discussed the issues and it has decided a set of suggestions to avert such market situation during the upcoming Rabi season.
The meeting was presided over by BCIC chairman Md Saidur Rahman.
It suggested communicating with the banks concerned to open necessary LCs, make due payments to fertiliser suppliers and gas bills in time.
It fears that the possible crisis will not be able to face the challenges, including required LCs opening, add confirmation by foreign banks, outstanding dues.
In the meeting, the BCIC chairman said that to meet the demand for fertilisers during the peak season, it is necessary to take measures to increase their necessary stocks.
He said the government has already agreed to give trade gap money of production urea fertiliser. Necessary arrangements will be made to pay the outstanding gas bills if the money is received from the government.
In the meeting, he requested the authorities concerned to supply sufficient gas to at least one closed fertiliser factory.
Experts said shortages of such chemicals would severely disrupt agricultural production and might lead to anarchy across the country.
They have also suggested taking step soon to prevent the possible odd problems.
According to the current estimation, stocks of fertiliser would stand at 0.438 million tonnes, 0.229 million tonnes and 0.141 million tonnes at the end of January, February and March 2025 respectively after meeting the monthly demand.
After meeting the fertiliser demand in September, there will be a possible closing stock of 0.411 million tonnes.
In October and November 2024, the possible collection volume and demand for fertilisers have projected around 0.674 million and 0.786 million respectively.
The volume of fertiliser stock would stand at 0.519 million and 0.554 million tonnes at the end of October after meeting the demand, according to the BCIC.
The BCIC, however, mentioned in a document amount of stock will be lower if LCs opening and outstanding payment of fertiliser prices are not normal due to dollar crunch.
Reviewing the projection of possible collection against the demand during the peak season, a representative from the agriculture ministry said there will be a shortage of fertilisers from next January. So, it is necessary to take measures to increase the stock of fertilisers from now on.
In the meeting, the director (commercial) said that the BCIC is very concerned about the stock of fertilisers for the peak season.
Highlighting a fertiliser crisis and addressing the issue, Agriculture Adviser Lt Gen (retd) Md Jahangir Alam Chowdhury has sought Finance Adviser Dr Salehuddin Ahmed's intervention in taking measures to pay dues of fertilisers.
In the request letter, he mentioned that 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 Bangladesh Agricultural Development Corporation (BADC) owes the suppliers of China, Saudi Arabia, Canada and Morocco a sum total of $80 million in bills, including shipping rent, according to the letter.
The government has already taken multiple steps to meet the required demand for such chemical items.
At the 5th meeting of the Advisers' Council Committee on Government Purchase with Finance and Commerce Adviser Dr Salehuddin Ahmed in the chair approved recently separate proposals for procuring some 140,000 (1.40 lakh) tonnes of fertiliser from various sources to meet the growing domestic demand.
Briefing reporters after the meeting, the finance adviser said that fertilisers were being imported in phases to meet the projected demand in the country and those consignments would be brought immediately.
He said the fertiliser would be imported from various sources, including Russia.
The agriculture adviser said in a meeting held in its ministry on September 14 that there has a sufficient stock of fertilisers until December next. No shortage of such items will be created. Farmers can buy and use fertilisers as per their desire and necessity.
A source said the situation has been further fall in trouble due LCs opening and confirmations by foreign banks concerned those impacts on private-sector importers.
The finance ministry has asked the Bangladesh Bank to ensure all necessary support for fertiliser imports.
In the review meeting, the BCIC chairman also requested the central bank and other banks to open LCs and pay fertilisers dues to ensure local agricultural production.
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