FE Report
A state-owned petroleum company of Qatar is reluctant to sell fertiliser to Bangladesh in the next fiscal year because of delayed payment, sources said.
Qatar Energy recently informed that it would not sign any contract for the fiscal year 2025-26 due to the delay in receiving payments for the 6th, 7th and 8th lots of fertilizer. The payments were delayed by 3 days, 7 days and 13 days respectively.
According to Janata Bank, the payment for the last 9th lot of 12.50 million tonnes of fertiliser from Qatar Energy Marketing, Qatar was due on March 14 last.
On March 20, the industries ministry requested the finance ministry and the Bangladesh Bank (BB) to take necessary steps for making the payment immediately under the Government to Government (G2G) arrangement. If not, the supply of fertiliser across the country would be affected, it added.
According to the procurement plan for the fiscal year 2024-25 under the G2G agreement, some 0.48 million tonnes in 16 lots are being imported from Saudi Basic Industries Corporation (SABIC), Saudi Arabia, some 0.27 million tonnes in 9 lots from Qatar Energy Marketing, Qatar and some 0.21 million tonnes in 7 lots from FertiGlobe UAE.
The payments for 14 lots of fertiliser from SABIC, Saudi Arabia, have already been completed. However, the payment for the 15th lot worth US$ 10.35 million which was due on February 26 still remains pending.
The ship carrying the third lot of fertiliser from Fertiglobe UAE has already arrived. The price of this lot, approximately US$ 14.00 million, was scheduled to be paid by Sonali Bank PLC in the last week of March.
Under the circumstances, the industries ministry fears a potential disruption to import of the next lot of fertiliser and interest will be imposed by the foreign bank, if the payment is not made on time as it is a confirmed LC.
When contacted, an official stated that the BB already took necessary measures to resolves the issue.
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