Government Aims to Save Tk 22,000 Crore by Restarting All Fertiliser Factories: BCIC Chairman

The government is working to save Tk 22,000 crore spent on importing urea fertiliser by bringing all of the country’s fertiliser factories back into production, Bangladesh Chemical Industries Corporation (BCIC) Chairman Md Babul Mia has said.

He made the remarks while answering journalists’ questions after visiting the Ashuganj fertiliser factory on Thursday (22 October) afternoon. The factory has remained closed since 1 March last year due to a gas crisis.

The BCIC chairman expressed hope that production at the Ashuganj fertiliser factory could begin this year itself through gas supply. Restarting the closed factory was one of the main purposes of his visit.

He said they want to make BCIC’s factories operational. The country has to import 26-27 lakh metric tonnes of urea fertiliser. If the factories remain operational and receive gas supply, they have the capacity to produce the amount the country needs and even to export, he noted.

The chairman also said their main problem is the gas crisis. However, they want to restart the factories by ensuring gas supply, and work is under way toward that goal.

In his words, if the factories can be restarted, fertiliser will no longer need to be imported. Ending imports would save a huge amount of foreign currency and also reduce dependence on foreign sources for fertiliser supply.

Present at the time were Ashuganj fertiliser factory Managing Director Sheikh Md Ali Ashraf and Deputy General Manager (Administration) Tajul Islam Bhuiyan, along with other officials of the factory.

As the Ashuganj fertiliser factory has been closed for a long time, the halt in production has had a local impact. Those concerned hope the factory can return to production if gas supply becomes normal.

Fertiliser is one of the main inputs for agricultural production in Bangladesh. When production at domestic factories falls, pressure on imports rises, creating risks in both cost and supply.

If this government goal is implemented, savings of up to Tk 22,000 crore a year on urea imports are possible, according to the BCIC chairman’s calculation. He indicated that such savings would be significant for agriculture and the economy.

However, the main condition for this plan is gas supply. His remarks made clear that achieving the target of restarting production will be difficult if the factories do not receive uninterrupted gas.

Attention will now be on which factory restarts when in the next phase and how gas supply will be arranged. The chairman himself expressed optimism about starting production at the Ashuganj factory within this year.