The government has set a target to restart three state-owned fertiliser factories by November next to boost domestic production, reduce import dependence and ease pressure on foreign exchange reserves.
The Bangladesh Chemical Industries Corporation (BCIC) also plans to raise annual fertiliser production to 27 lakh metric tonnes within the next three to five years through the modernisation of existing plants, capacity expansion and the establishment of new factories.
Of the seven fertiliser factories under BCIC, four are currently operational, while three remain closed due to insufficient supply of gas and a lack of essential raw materials, according to BCIC sources.
The closed facilities are the TSP Complex Limited (TSPL) and DAP Fertilizer Company Limited (DAPFCL) in Chattogram, and the Ashuganj Fertilizer and Chemical Company Limited (AFCCL) in Brahmanbaria.
BCIC Chairman Md Babul Mia told BSS that restoring production at Ashuganj requires an uninterrupted gas supply at the prescribed pressure, while the TSP and DAP plants need adequate supplies of essential raw materials.
“Coordination with the relevant agencies is continuing to resolve these issues. We are hopeful of restarting the factories by November, provided the necessary gas and raw materials are available,” he said.
Bangladesh continues to rely heavily on imported fertiliser to meet the needs of its agricultural sector, as domestic production falls short of national demand, particularly for phosphate-based fertilisers.
According to BCIC data, state-owned factories produced 1,100,732.50 metric tonnes of urea, 68,259 tonnes of triple superphosphate (TSP) and 82,142 tonnes of diammonium phosphate (DAP) in the 2025-26 fiscal year.
National urea demand stood at 26 lakh metric tonnes during the same period, meaning production at state-owned factories met approximately 42.34 percent of the requirement.
Domestic production accounted for around 9.10 percent of TSP demand and 5.53 percent of DAP demand, highlighting the country's substantial reliance on imports of phosphate-based fertilisers.
The BCIC Chairman said Bangladesh imported 16.44 lakh metric tonnes of urea in fiscal 2024-25 and 14.79 lakh metric tonnes in 2025-26.
Expanding production at state-owned factories would help reduce imports, save foreign currency and improve the timely availability of fertiliser for farmers, he said.
The government is working towards saving Tk 22000 crore in urea import expenditure by bringing all fertiliser factories into operation, according to the BCIC chairman.
The resumption of production at Ashuganj hinges primarily on securing a reliable supply of natural gas at the required pressure. BCIC is maintaining communication with the relevant gas authorities, which have reportedly indicated that supplies could be arranged soon.
At the TSP complex, production has been suspended due to a shortage of phosphoric acid and the shutdown of its sulphuric acid plant. Production can resume once the necessary raw materials are procured and repair work is completed.
The DAP factory has also remained closed because of insufficient phosphoric acid supplies.
BCIC has set November as the target for restarting the TSP and DAP plants, although meeting the deadline will depend on raw material availability and the completion of technical preparations.
The corporation is coordinating with the Energy and Mineral Resources Division, Petrobangla, Gas Transmission Company Limited (GTCL) and relevant gas distribution companies to address supply constraints.
Officials say ensuring a steady supply of gas and industrial chemicals, alongside equipment maintenance and reliable plant operations, will be essential to sustaining production after the factories reopen.
Beyond reopening the closed facilities, BCIC intends to expand the country's long-term fertiliser production capacity through technological upgrades and new investments.
Its plans include modernising older production systems, improving operational efficiency and establishing new urea and TSP fertiliser factories.
Discussions are also underway on modernising the Chittagong Urea Fertilizer Limited (CUFL) and strengthening its technological capabilities.
Babul Mia said the target of reaching annual production of 27 lakh metric tonnes within three to five years would require a coordinated effort to upgrade existing plants, increase capacity and develop new facilities.
Achieving the target will depend on adequate investment, sufficient energy supplies, access to raw materials and efficient factory management. Production costs will also need to remain competitive with imported fertiliser.
Higher domestic fertiliser production could help stabilise supplies for farmers and reduce Bangladesh's exposure to volatility in international prices, shipping costs and global supply chains.
Lower import requirements could also ease pressure on foreign exchange reserves. However, the scale of these benefits will depend on how much production increases and whether locally manufactured fertiliser can be produced and supplied at competitive costs.
For now, the immediate priority is to restore operations at the three closed factories by November. Over the longer term, BCIC aims to strengthen domestic production through modernisation, capacity expansion and new industrial facilities.
