Government Targets November to Reopen Three Fertiliser Factories

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Chattogram:Dhaka The government has announced plans to reopen three state-owned fertiliser factories by November to boost domestic production, reduce dependency on imports, and ease pressure on foreign exchange reserves.

According to Bangladesh Sangbad Sangstha, the Bangladesh Chemical Industries Corporation (BCIC) aims to increase annual fertiliser production to 27 lakh metric tonnes over the next three to five years by modernising existing plants, expanding capacity, and establishing new factories.

Currently, four out of the seven fertiliser factories under BCIC are operational. The three closed facilities are the TSP Complex Limited (TSPL) and DAP Fertilizer Company Limited (DAPFCL) in Chattogram, and the Ashuganj Fertilizer and Chemical Company Limited (AFCCL) in Brahmanbaria. These have remained non-operational due to insufficient gas supply and a lack of essential raw materials.

BCIC Chairman Md Babul Mia stated that restoring production at Ashuganj requires a consistent gas supply at the prescribed pressure, while the TSP and DAP plants need adequate supplies of essential raw materials. Coordination with relevant agencies is ongoing to resolve these issues, with a hopeful restart by November.

Domestic production currently falls short of national demand, particularly for phosphate-based fertilisers, leading to significant reliance on imports. In fiscal 2025-26, state-owned factories produced 1,100,732.50 metric tonnes of urea, 68,259 tonnes of TSP, and 82,142 tonnes of DAP, meeting only a portion of the national demand.

Efforts are underway to ensure a steady supply of gas and raw materials to sustain production after the factories reopen. Additionally, BCIC aims to modernise and expand production capacity, which includes discussions on upgrading the Chittagong Urea Fertilizer Limited and establishing new facilities.

The long-term goal is to stabilise supplies for farmers and reduce the country's exposure to international market volatility, with the immediate focus on reopening the three closed factories by November.