Bangladesh is taking urgent steps to secure its fertiliser supply by planning to import an additional 200,000 tonnes of urea, as the ongoing geopolitical tensions in the Middle East continue to disrupt global trade routes. The move comes amid growing concerns over the Strait of Hormuz, a critical maritime chokepoint that handles nearly one-third of the world’s fertiliser shipments. The disruption caused by the US-Israel conflict with Iran has significantly impacted the flow of essential agricultural inputs, prompting the government to act swiftly to ensure food security.
The state-owned Bangladesh Chemical Industries Corporation (BCIC) has already initiated the procurement process by floating two separate international tenders on April 2, inviting suppliers to submit quotations by April 16. The fertiliser is expected to be delivered through the country’s two major ports, Chittagong and Mongla, ensuring a wider distribution network across regions. This initiative follows another tender issued less than a week earlier for the same quantity, reflecting the urgency and scale of the situation.
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Bangladesh’s reliance on imported urea remains a key challenge. The country requires more than 2.6 million tonnes of urea annually, and nearly 75 percent of this demand is met through imports due to limited domestic production capacity. Local factories have struggled to operate at full capacity, largely because of gas supply constraints, as natural gas is increasingly diverted to other sectors such as power generation and industry.
The situation has further worsened after the government shut down five out of six urea factories earlier due to rising energy costs and supply uncertainty linked to the Hormuz crisis. This has increased dependency on foreign sources at a time when global supply chains are already under pressure. As a result, securing adequate fertiliser stocks has become a top priority for policymakers.
According to data from the Ministry of Agriculture, Bangladesh currently holds approximately 373,100 tonnes of urea in reserve. While this stock is considered sufficient to meet demand until June, the country needs to build a buffer of around 600,000 tonnes ahead of the Aman cultivation season, which typically begins between July and September. Failure to maintain adequate reserves could lead to supply shortages, potentially affecting crop yields and overall agricultural productivity.
Global market trends have added to the pressure. The price of urea has surged significantly in recent months, rising to $725.6 per tonne in March, compared to $472 per tonne before the conflict. This represents a sharp increase of 54 percent, according to World Bank commodity data. The price hike is largely attributed to supply disruptions and increased transportation risks through the Strait of Hormuz, which remains a vital route for exports from major producers in the Gulf region.
Bangladesh imports most of its urea from countries such as Saudi Arabia, the United Arab Emirates, and Qatar. However, the current geopolitical instability has complicated shipping routes and raised uncertainties over timely deliveries. In response, the government is actively exploring alternative sourcing strategies.
BCIC Chairman Md Fazlur Rahman has stated that authorities are “opening all possible channels” to secure fertiliser supplies from multiple international partners. While tenders have been floated, the government is showing a preference for government-to-government agreements to ensure faster and more reliable procurement. Saudi Arabia has indicated its capacity to supply up to 100,000 tonnes of urea, while the UAE has offered around 30,000 tonnes through alternative shipping routes. Additionally, Bangladesh is maintaining close communication with countries like Russia and China to diversify its supply sources.
The government is also coordinating with the Ministry of Foreign Affairs to navigate diplomatic challenges related to shipping routes, particularly those involving Iranian waters. Securing clearance for safe passage through or around the Strait of Hormuz remains a crucial factor in ensuring uninterrupted supply.
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Agriculture officials have emphasized that maintaining a stable fertiliser supply is critical to sustaining crop production and ensuring food security for the country’s population. Any disruption in urea availability during the peak planting season could have far-reaching consequences, including reduced yields and increased food prices.
In this context, Bangladesh’s proactive procurement strategy reflects a broader effort to mitigate external risks and maintain agricultural stability. While global uncertainties persist, the government’s focus on building sufficient reserves, diversifying supply sources, and strengthening diplomatic coordination aims to safeguard the country’s fertiliser supply chain during a critical period.