Urea in Bhola, TSP in Chattogram: Government Plans Three New Fertiliser Factories

The government has planned to set up three new fertiliser factories to raise domestic fertiliser production. The initiatives include a urea factory in Bhola with a daily capacity of 1,700 metric tonnes, a TSP factory in Chattogram with an annual capacity of 400,000 metric tonnes, and a urea formaldehyde-85 (UF-85) factory in Palash, Narsingdi, with an annual capacity of 24,000 metric tonnes.

Officials of the Ministry of Industries said that if this plan of the Bangladesh Chemical Industries Corporation (BCIC) is implemented, it could raise domestic fertiliser production capacity, reduce import dependence, strengthen supply to the agriculture sector and create new employment opportunities in the industrial sector.

BCIC has set a target of raising fertiliser production to 2.7 million metric tonnes within the next three to five years.

BCIC said it currently has seven fertiliser factories under it, five of them urea and two non-urea factories. In fiscal year 2025-26, the country's urea fertiliser demand was 2.6 million metric tonnes. In that fiscal year, the corporation's factories produced 11 lakh 732.50 metric tonnes of urea, which is 42.34 per cent of total demand.

In the same fiscal year, the demand for TSP and DAP fertiliser in the country was 750,000 and 1.485 million metric tonnes respectively. In contrast, BCIC's factories produced only 68,259 and 82,142 metric tonnes respectively, which is only 9.10 per cent and 5.53 per cent of total demand. In other words, most of the demand is met through imports.

BCIC officials said the government gives a subsidy of Tk 23,000 per metric tonne on urea fertiliser, Tk 49,170 on TSP and Tk 98,840 on DAP. Considering these, the government has decided to set up the three new fertiliser factories. At the same time, importance is being given to raising the production capacity of the existing factories and modernising them.

The proposed Bhola factory has a target of producing 1,700 metric tonnes of urea daily. According to BCIC, once implemented, the factory will need 45 to 50 million cubic feet of gas daily to keep production running. Ensuring adequate gas supply is therefore important for implementing the project.

On this, BCIC Chairman Md Babul Mia said it is essential to raise domestic production capacity to meet the country's urea fertiliser demand. If the construction of the proposed urea fertiliser factory in Bhola is implemented, it will play an important role in increasing production capacity. But for such projects, ensuring adequate gas supply, technical preparation, financing and necessary approvals is important.

To raise domestic production of phosphate fertiliser, there is a plan to set up a new TSP fertiliser factory with an annual capacity of 400,000 metric tonnes on unused land of the TSPCL complex in North Patiya in Chattogram. Currently, production at BCIC's TSP complex is being disrupted due to raw material shortages and plant problems. BCIC Chairman Md Babul Mia said the plan to set up the new factory has been taken to raise domestic TSP production, and preparations are moving forward after reviewing the technical and economic aspects of the project.

In Palash, Narsingdi, there is a plan to set up a UF-85 factory with an annual capacity of 24,000 metric tonnes on unused land of the Ghorashal-Palash Fertilizer PLC. If implemented, the project will create an opportunity to use existing industrial infrastructure and unused land. On this, the BCIC chairman said there is an opportunity to set up new industries using the unused land of existing industrial establishments, and further activities need to move forward considering production technology, market demand and economic feasibility.

If the initiative to set up the three new factories is implemented, employment opportunities may be created at various stages, during construction and after production begins. Alongside engineers, technicians, skilled workers and staff engaged in operations, there is also the possibility of indirect employment in transport, supply, maintenance and related service sectors.

BCIC Chairman Md Babul Mia said the establishment of the new factories may create employment opportunities at various stages, from construction work to production and maintenance. However, how many people will be employed can only be said once the final design of the projects, the production technology and the workforce structure are determined.