Urea procurement set at 3m tonnes next fiscal
Wednesday, 18 May 2011
Monira Munni
The government has targetted to procure 3.0 million tonnes of Urea fertiliser in the next fiscal year aiming to meet the requirement from both local and international sources, officials said. "The target is 0.2 million tonnes higher than the last fiscal," Industries Minister Dilip Barua said Tuesday. "We hope to produce about 1.1 million tonnes of fertiliser in our local factories while the rest will be met through import by state to state agreement and open tender," he added. The government has planned to import about 0.6 million tonnes of fertiliser through state to state agreement from Dubai, Saudi Arabia and Qatar, he said, adding "We found the state to state agreement to be effective, which ensures timely supply of the major agricultural input." The Ministry of Industries (MoI) will import another 0.9 million tonnes of fertiliser from open tender and procure 0.4 million tonnes from Karnaphuli Fertiliser Company Limited. The government fixed the demand target of 2.8 million tonnes in 2010-11 fiscal year. The country is now dependent on fertiliser import after gas crisis has forced some state-run fertiliser factories to remain inoperative, Mo I officials said. Officials said price spike of fertiliser in the international market pushed up cash subsidy, which rose to Tk 45-50 billion this fiscal. But lower prices in the international market spiraled down subsidy to Tk 32.95 billion last fiscal. To decrease the import dependency, the government would set up three new fertiliser factories having the annual production capacity of about 0.57 million tonnes of fertiliser, the minister said, adding that Shahjalal Fertiliser Project might go into production by the tenure of the government. "We are also expediting the establishment of the second unit of Ashuganj Fertiliser Factory to increase local production," Mr Barua said. Presently the country has six Urea fertiliser factories with annual production capacity of 1.8 million tonnes, MoI official said, adding the factories can hardly meet the production target due to gas supply crunch.
The government has targetted to procure 3.0 million tonnes of Urea fertiliser in the next fiscal year aiming to meet the requirement from both local and international sources, officials said. "The target is 0.2 million tonnes higher than the last fiscal," Industries Minister Dilip Barua said Tuesday. "We hope to produce about 1.1 million tonnes of fertiliser in our local factories while the rest will be met through import by state to state agreement and open tender," he added. The government has planned to import about 0.6 million tonnes of fertiliser through state to state agreement from Dubai, Saudi Arabia and Qatar, he said, adding "We found the state to state agreement to be effective, which ensures timely supply of the major agricultural input." The Ministry of Industries (MoI) will import another 0.9 million tonnes of fertiliser from open tender and procure 0.4 million tonnes from Karnaphuli Fertiliser Company Limited. The government fixed the demand target of 2.8 million tonnes in 2010-11 fiscal year. The country is now dependent on fertiliser import after gas crisis has forced some state-run fertiliser factories to remain inoperative, Mo I officials said. Officials said price spike of fertiliser in the international market pushed up cash subsidy, which rose to Tk 45-50 billion this fiscal. But lower prices in the international market spiraled down subsidy to Tk 32.95 billion last fiscal. To decrease the import dependency, the government would set up three new fertiliser factories having the annual production capacity of about 0.57 million tonnes of fertiliser, the minister said, adding that Shahjalal Fertiliser Project might go into production by the tenure of the government. "We are also expediting the establishment of the second unit of Ashuganj Fertiliser Factory to increase local production," Mr Barua said. Presently the country has six Urea fertiliser factories with annual production capacity of 1.8 million tonnes, MoI official said, adding the factories can hardly meet the production target due to gas supply crunch.