The country’s fertilizer factories have been closed for months due to gas and fuel shortages. In the meantime, the government is planning to establish three new fertilizer factories.

❐ Staff Reporter

The government has planned to set up three new fertilizer factories to increase fertilizer production in the country. The proposed factories include one in Bhola that will produce 1,700 metric tons of urea daily, one in Chittagong that will produce 400,000 metric tons of TSP annually, and one in Palash, Narsingdi, that will produce 24,000 metric tons of urea formaldehyde-85 (UF-85) annually.

Officials of the Industries Ministry said that if the plan of Bangladesh Chemical Industries Corporation (BCIC) is implemented, the fertilizer production capacity in the country will increase. Besides, there is a possibility of reducing import dependence, strengthening fertilizer supply in the agricultural sector and creating employment opportunities in the industrial sector. BCIC has set a target of increasing fertilizer production to 2.7 million metric tons within the next three to five years.

There are currently seven fertilizer factories under BCIC—five of which are urea and two are non-urea fertilizer factories.

According to the organization, the demand for urea fertilizer in the country in the fiscal year 2025-26 was 2.6 million metric tons. In that year, BCIC’s factories produced 1.1 million 732.50 metric tons of urea, which is 42.34 percent of the total demand.

In the same fiscal year, the demand for TSP and DAP fertilizers in the country was 750,000 and 1,485,000 metric tons respectively. In contrast, the BCIC factories produced 68,259 and 82,142 metric tons respectively. This production is 9.10 and 5.53 percent of the total demand for TSP and DAP respectively. That is, a large part of the demand is being met by importing.

BCIC officials said that the government provides a subsidy of Tk 23,000 per metric ton of urea fertilizer, Tk 49,170 for TSP, and Tk 98,840 for DAP.

Considering these factors, the government has decided to establish three new fertilizer factories. At the same time, emphasis is being placed on increasing the production capacity of the existing factories and modernizing them.

Plans to produce 1,700 tons of urea daily in Bhola

As part of an initiative to increase domestic production to meet the country’s demand for urea fertilizer, there are plans to set up a new urea fertilizer factory in Bhola. According to the proposal, the factory will produce 1,700 metric tons of urea per day.

According to BCIC, the factory will require 45 to 50 million cubic feet of gas per day to operate. Therefore, it is important to ensure adequate gas supply for the implementation of the project. The establishment of the factory will increase the country’s urea production capacity and create an opportunity to increase the share of domestic production in supplying fertilizer according to the needs of farmers.

BCIC Chairman Md. Babul Miah told state news agency BSS, “It is important to increase domestic production capacity to meet the country’s urea fertilizer demand. If the proposed urea fertilizer factory construction in Bhola is implemented, it will play an important role in increasing production capacity. However, it is important to ensure adequate gas supply, technical preparation, financing and necessary approvals for the implementation of such a project.”

Initiative to produce 400,000 tons of TSP annually in Chittagong

A new TSP factory is planned to be set up in Uttar Patenga, Chittagong to increase domestic production of phosphate fertilizers. The proposed factory, located on the unused space of the TSPCL complex, will have an annual production capacity of 4 lakh metric tons. Currently, production at BCIC’s TSP complex is being disrupted due to raw material shortages and plant problems.

Establishing a new factory will provide an opportunity to significantly increase TSP fertilizer production capacity.

BCIC Chairman Md. Babul Miah told BSS that a plan has been taken to set up a new factory to increase domestic production of TSP fertilizer. Necessary preparations are being made after reviewing the technical and economic aspects of the project. If implemented, TSP production capacity will increase and there will be an opportunity to increase the contribution of domestic production to fertilizer supply.

Plans to set up UF-85 factory in Palash

Ghorashal-Palash Fertilizer PLC plans to set up a factory to produce urea formaldehyde-85 (UF-85) in the unused space of Palash in Narsingdi. The proposed factory will have an annual production capacity of 24,000 metric tons. If the project is implemented, the existing industrial infrastructure and unused land can be utilized. In addition, there is a possibility of increasing the production capacity of related industrial products.

BCIC Chairman Md. Babul Miah said that there is an opportunity to set up new industries by using the unused space of existing industries. The next steps regarding the proposed UF-85 factory in Palash should be taken considering the production technology, market demand and economic feasibility.

If the project is implemented, it will create opportunities to increase production capacity in the relevant industrial sector.

Potential for new employment creation

If the initiative to establish three new factories is implemented, employment opportunities can be created at various stages, from construction to production. In addition to engineers, technicians, skilled workers and management personnel, there is also the possibility of indirect employment in the transportation, logistics, maintenance and related service sectors.

If the projects are implemented in Bhola, Chittagong and Narsingdi, the use of local industrial infrastructure will increase and opportunities for economic activities will be created.

BCIC Chairman Md. Babul Mia told BSS, “Establishing new factories can create employment opportunities at various levels, from construction to production and maintenance. However, the number of people who will be employed will be determined after the final design of the project, production technology and manpower structure are determined. We want to focus on increasing production capacity and also on creating skilled manpower in the industrial sector.”