The Bangladesh government aims to restart three state-owned fertiliser factories by November to boost domestic production, reduce reliance on imports, and ease pressure on the country’s foreign exchange reserves. The Bangladesh Chemical Industries Corporation (BCIC) is spearheading the effort, with plans to increase annual fertiliser output to 2.7 million metric tonnes within three to five years through modernisation, capacity expansion, and the establishment of new facilities.
Of the seven fertiliser factories managed by BCIC, four are currently operational while three remain closed due to inadequate gas supply and shortages of essential raw materials. The inactive plants include the TSP Complex Limited (TSPL) and the DAP Fertilizer Company Limited (DAPFCL), both located in Chattogram, and the Ashuganj Fertilizer and Chemical Company Limited (AFCCL) in Brahmanbaria.
BCIC Chairman Md Babul Mia noted that resuming production at Ashuganj depends on securing an uninterrupted supply of natural gas at the required pressure. The TSP and DAP plants are affected by shortages of phosphoric acid and the suspension of sulphuric acid production needed for their operations. Repair work and procurement of raw materials are necessary before these plants can resume activity. Authorities are coordinating closely with relevant agencies, including the Energy and Mineral Resources Division, Petrobangla, and the Gas Transmission Company Limited, to address these constraints.
In the 2025-26 fiscal year, BCIC factories produced approximately 1.1 million metric tonnes of urea, 68,000 tonnes of triple superphosphate (TSP), and 82,000 tonnes of diammonium phosphate (DAP). Despite this, domestic production met only about 42 percent of the total national demand for urea, with coverage for phosphate-based fertilisers substantially lower—roughly 9 percent for TSP and 5.5 percent for DAP. This gap has led to heavy import dependence, particularly for phosphate fertilisers.
The government imported nearly 1.68 million metric tonnes of urea in fiscal 2024-25 and around 1.48 million tonnes in 2025-26. By restarting the closed factories and increasing domestic production, the government aims to reduce fertiliser imports, saving an estimated Tk 22,000 crore in foreign exchange costs. Enhanced production is also expected to improve farm-level access to fertilisers by ensuring timely availability.
Looking beyond reopening the factories, BCIC is planning comprehensive modernisation efforts, including upgrading ageing plants, improving operational efficiencies, and constructing new fertiliser factories. Discussions are ongoing to modernise the Chittagong Urea Fertilizer Limited (CUFL) facility and enhance its technological capabilities. MD Babul Mia emphasised that achieving the 2.7 million metric tonnes production target will require coordinated investment, reliable energy supplies, access to necessary raw materials, and effective management.
Officials highlight that maintaining stable natural gas supply, securing essential industrial chemicals, and ensuring proper plant maintenance will be critical to sustaining increased fertiliser production once the factories resume operations.