The government is likely to renew its contracts with Saudi Arabia, Qatar and the United Arab Emirates (UAE) to import urea fertilizer under state-level arrangements.
According to official sources, the Industries Ministry has already sent a proposal in this regard to the Cabinet Division which the Cabinet Economic Affairs Committee will consider at its meeting on Wednesday.
“We’ve received a proposal on the issue from the Industries Ministry,” a senior official at the Cabinet Division said adding that the proposal is included in the agenda of Wednesday’s meeting.
Bangladesh needs some 4.8 million tonnes of different types of fertilizer and the requirement of urea fertilizer is the highest 2.450 mts.
Of the required urea, 1.1 million tonnes are locally produced while the remaining 1.3 million tonnes imported under state-level arrangements.
At present, the government has contracts with different countries, including Saudi Arabia, Qatar and the UAE to import the urea fertilizer.
The state-owned Bangladesh Chemical Industries Corporation (BCIC) is responsible to produce and import the urea from abroad.
The present BCIC’s contract with Saudi Arabia’s SABIC expires on February 28 while the agreement with Qatar’s Muntajat on May 31 and UAE’s FERTIL’s agreement on June 30 this year.
The Industries Ministry proposed to renew deals to import 0.2-0.4 million mts of fertilizer from Saudi Arabia, 0.6-0.8 million mts from Qatar and 0.2-0.3 million mts fertilizer from the UAE for the fiscal year 2014-15.