The government has approved proposals to import 295,000 tonnes of chemical fertiliser to ensure adequate supply in the domestic market. The approved proposals cover the procurement of 60,000 tonnes of TSP, 155,000 tonnes of granular urea, and 80,000 tonnes of DAP fertiliser, according to official sources.

Subsidy and Demand Gap

The approval comes amid a significant gap between domestic production and demand. Parliament was informed that the country's estimated annual fertiliser demand stands at 5.80 million tonnes, against a domestic production capacity of just 1.2 million tonnes. To bridge this shortfall, the country relies heavily on imports. The agriculture ministry has set a fertiliser subsidy of Tk 17,000 crore for the fiscal year 2026-27 to ensure farmers receive fertilisers at affordable prices.

Details of the Import Proposals

Granular urea constitutes the largest portion of the latest approved import plan, totalling 155,000 tonnes. This is followed by 80,000 tonnes of DAP fertiliser and 60,000 tonnes of TSP. The imported fertilisers are expected to be distributed through the country's existing supply chain network to reach farmers across the nation.

Implications for the Agricultural Economy

Analysts note that maintaining a steady supply of fertiliser is critical for ensuring food security. With limited domestic production capacity, the reliance on imports is increasing, which puts pressure on foreign currency reserves. However, the continuation of government subsidies is expected to keep fertiliser prices stable at the farmer level. Relevant ministries and agencies are overseeing the import and distribution process to ensure timely delivery.