The government of Bangladesh’s Cabinet Committee on Procurement has given approval for the import of diammonium phosphate (DAP) fertilizer. The OCP Group will supply a stock of 40,000 tonnes of the fertilizer as part of a larger call for tenders to purchase 70,000 tonnes of fertilizer on the international market. The import price is fixed at $610 per tonne of DAP and the transaction will take place between the OCP Group and the Bangladesh Agricultural Development Corporation. The approval also covers the purchase of 30,000 tonnes of bagged granular urea from Karnaphuli Fertilizer Company. In 2021, the OCP Group exported $566m worth of fertilizer to Bangladesh, with DAP being the most imported fertilizer.
The Cabinet Committee on Procurement of the Government of Bangladesh approved on March 23 the import of a stock of 40 000 tonnes of diammonium phosphate (DAP) from the OCP Group as part of a call for tenders for the purchase of a total stock of 70 000 tons of’fertilizer on the marketIt is international.
Morocco will ship 40,000 tons of diammonium phosphate fertilizer, also known as DAP, to Bangladesh. Indeed, the daily Bangladeshi newspaper Newage Businesswhich specializes in Bangladesh news and international affairs, reported that the Cabinet Committee on Government Procurement approved the import of 40,000 tonnes of Diammonium Phosphate (DAP) stockpile during a meeting Thursday March 23.
The media pointed out that the import price has been set at the fixed tariff of $610 per ton of DAP and that the transaction will be between OCP Group and the Bangladesh Agricultural Development Corporation (Bangladesh Agricultural Development Corporation-BADC- ).
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“This approach is also part of an agreement concluded upstream by the governments of the two countries last October and relating to a supply for a total stock of 520,000 tonnes of DAP from Morocco during the 2022/2023 financial year,” adds Newage Business, noting that in addition to the 40,000 tons of Moroccan fertilizers, the Cabinet Committee on Procurement of the Bangladeshi Government has also given the green light to Bangladesh Chemical Industries Corporation to purchase 30,000 tons of bagged granular urea to be supplied by Karnaphuli Fertilizer Company at $327.62 per ton.
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In Bangladesh, while DAP is the second most consumed fertilizer after urea, it is the most imported with purchases of 1.4 million tonnes in 2020/2021. In 2021, the OCP Group had exported $566 million worth of fertilizer to Bangladesh, i.e. a third of the total purchases of this Southeast Asian country.
The approval of the import of 40,000 tonnes of diammonium phosphate from the OCP Group in Morocco by the Cabinet Committee on Procurement of the Government of Bangladesh is a significant move towards meeting the country’s agricultural needs. The agreement, which follows an earlier deal between the governments of the two countries, signifies the strong bilateral trade relationship and the commitment of both parties towards fostering economic growth. With the import of the fertilizer, the government aims to improve food production and reduce the country’s dependence on costly imports. This partnership is expected to yield further beneficial outcomes, as Bangladesh looks to achieve self-sufficiency in food production and reduce poverty.