Government plans to set up 3 new fertilizer factories

Officials of the Ministry of Industries said that if this plan of Bangladesh Chemical Industries Corporation (BCIC) is implemented, domestic production capacity will increase as well as dependence on imports will decrease, supply in the agriculture sector will be strengthened, and new employment can be created in the industrial sector. BCIC has set a target to raise fertilizer production to 2.7 million metric tons within the next three to five years.

Under BCIC, there are currently seven fertilizer factories in total—five urea and two non-urea. In fiscal year 2025-26, the country's demand for urea was 2.6 million metric tons, against production of 1,100,732.50 metric tons, which is 42.34 percent of demand. In the same fiscal year, demand for TSP and DAP was 750,000 and 1,485,000 metric tons respectively; production was 68,259 and 82,142 metric tons respectively. That is, most of the demand is being met through imports. The government is providing subsidies of Taka 23,000 per metric ton of urea, Taka 49,170 per metric ton of TSP, and Taka 98,840 per metric ton of DAP.

The proposed factory in Bhola will require 45 to 50 million cubic feet of gas per day to operate. The other two factories are planned to be set up on unused land of the TSPCL complex in North Patenga, Chattogram, and on unused land of Ghorashal-Palash Fertilizer PLC in Palash. In addition, emphasis is being given to increasing the capacity and modernization of existing factories.

BCIC Chairman Md. Babul Mia said that increasing domestic production capacity is essential; however, ensuring adequate gas supply, technical preparation, financing and necessary approvals is important for implementing these projects.