China may fund construction of urea fertiliser plant
Friday, 27 July 2007
FE Report
China is expected to finance construction of a urea fertiliser factory in Bangladesh, which is struggling to meet a growing need for manure to boost production of grains.
Official sources said in response to a Bangladesh request, China recently assured the former that it might offer financial help to build the fertiliser factory.
The request for assistance came at a recent meeting between Economic Relations Division (ERD) Secretary, Aminul Islam Bhuiyan and visiting Chinese Assistant Commerce Minister, Wang Chao in Dhaka.
The Chinese minister, who led a delegation, held talks with the Bangladeshi officials on investment and bilateral trade.
A senior ERD official told the FE that the government would send a formal request to China seeking help to set up the fertiliser production plant.
China, one of the major bilateral donors, made commitment to provide US$211.12 million aid to Bangladesh in fiscal 2006-07.
The government has been looking for overseas assistance for building a fertiliser plant against the backdrop of production shortfall of urea and its price hike in the international market.
The country's total demand for urea fertiliser is over 2.8 million tonnes a year. Out of the total requirement, the government imports around 1.1 million tonnes urea and the rest 1.7 million tonnes are produced in the country's six state-owned factories.
Official sources said if the government imports urea at the present market value of $380 per tonne (1000kg), import cost of per bag (50kg) of urea will stand at around Tk 1400.
However, the government is now selling urea fertiliser at Tk 310 to 315 per bag to the dealers at a subsidised rate for distribution to farmers.
Importers said that the price of urea in the global market is now $ 370 to $390 per tonne against $230 to $260 per tonne three to four months ago.
Kafil Uddin Ahmed, a local fertiliser importer and also the President of the Bangladesh Fertiliser Association told the FE: "If the price of urea in the domestic market is not raised and more fertiliser factories are not set up, the government will have to bear huge losses."
China is expected to finance construction of a urea fertiliser factory in Bangladesh, which is struggling to meet a growing need for manure to boost production of grains.
Official sources said in response to a Bangladesh request, China recently assured the former that it might offer financial help to build the fertiliser factory.
The request for assistance came at a recent meeting between Economic Relations Division (ERD) Secretary, Aminul Islam Bhuiyan and visiting Chinese Assistant Commerce Minister, Wang Chao in Dhaka.
The Chinese minister, who led a delegation, held talks with the Bangladeshi officials on investment and bilateral trade.
A senior ERD official told the FE that the government would send a formal request to China seeking help to set up the fertiliser production plant.
China, one of the major bilateral donors, made commitment to provide US$211.12 million aid to Bangladesh in fiscal 2006-07.
The government has been looking for overseas assistance for building a fertiliser plant against the backdrop of production shortfall of urea and its price hike in the international market.
The country's total demand for urea fertiliser is over 2.8 million tonnes a year. Out of the total requirement, the government imports around 1.1 million tonnes urea and the rest 1.7 million tonnes are produced in the country's six state-owned factories.
Official sources said if the government imports urea at the present market value of $380 per tonne (1000kg), import cost of per bag (50kg) of urea will stand at around Tk 1400.
However, the government is now selling urea fertiliser at Tk 310 to 315 per bag to the dealers at a subsidised rate for distribution to farmers.
Importers said that the price of urea in the global market is now $ 370 to $390 per tonne against $230 to $260 per tonne three to four months ago.
Kafil Uddin Ahmed, a local fertiliser importer and also the President of the Bangladesh Fertiliser Association told the FE: "If the price of urea in the domestic market is not raised and more fertiliser factories are not set up, the government will have to bear huge losses."