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Govt to buy 2 lakh tonnes of urea

Star Business Report
The government yesterday decided to buy 2 lakh tonnes of urea from the international market in the first purchase decision taken by the polls-time government to meet the deficit in domestic production.
The approval came at a meeting of the cabinet committee on public purchase at the secretariat in Dhaka.
The government will continue holding meetings of the purchase committee during its tenure, Finance Minister AMA Muhith told reporters after the meeting.
"It is routine work. We will have to continue purchases to run the country. If we do not buy fertiliser there will be a
crisis."
The government has already decided not to hold any meeting of the Executive Committee of the National Economic Council (Ecnec), the government's highest policy-making panel.
The electoral code of conduct does not allow the polls-time administration to take up any new project, Muhith said.
The government will buy 75,000 tonnes of fertiliser from Desh Trading Corporation, with Singapore-based Commodity Fast Pte Ltd as the main supplier.
RK Enterprise, whose main supplier is Liven Agrichem Pte Ltd in Singapore, will supply 25,000 tonnes of fertiliser.
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Both companies will supply fertiliser at $389.3 a tonne.
Also, Desh Trading will supply one lakh tonnes of urea at $387.34 a tonne.
The proposals made by the industries ministry said the country had set a target to produce one million tonnes of urea from six fertiliser factories this fiscal year.
But the state-run factories will not be able to reach its production targets due to the shortage of gas, prompting the government to revise down the target to 7.5 lakh tonnes, according to the ministry.
Due to the production shortfall at state-run factories, the government will now buy four lakh tonnes of fertiliser from international suppliers, which was earlier set at 1.5 lakh tonnes.
Demand for fertiliser has been estimated at 24.5 lakh tonnes in 2013-14, according to statistics.
Muhith also said the government would go ahead with its plan to provide a separate pay-scale for the employees of the central bank and four state-run commercial banks.
The election schedule will not create any problem “ at all" in awarding the pay-scale for the banks, he said.