MASUK HRIDOY, Brahmanbaria

Once a major producer of fertiliser, Ashuganj Fertiliser and Chemical Company Limited is now struggling to survive amid a web of complications.

In the 2023-24 fiscal year, the plant managed to operate for only 41 out of 365 days due to an acute shortage of gas, producing just 48,453 tonnes of urea against the annual target of 100,000 tonnes.

“Since March this year, the factory has remained completely shut,” said an employee requesting anonymity.

The prolonged shutdown has left modern machinery worth hundreds of crores of taka at risk of permanent damage, while hundreds of workers and employees face deep uncertainty over their jobs and salaries.

Established in 1983 on 536 acres on the eastern bank of the Meghna in Brahmanbaria, AFCCL was once a flagship unit of Bangladesh Chemical Industries Corporation.

With a daily capacity of 1,100 tonnes of prilled urea valued at Tk 4.5 crore, the factory played a vital role in supplying fertiliser to farmers across seven districts through more than 750 dealers. Over the past decade, however, production has plunged, particularly after gas rationing began in 2017 to prioritise power plants.

Data shows the plant repeatedly missed production targets in recent years. In 2020-21, it produced 142,557 tonnes against a target of 240,000 tonnes; in 2021-22, 96,046 tonnes against 180,000 tonnes; in 2022-23, 157,420 tonnes against 300,000 tonnes. By 2023-24, output had dropped to less than half the target.

Each month of shutdown means urea worth Tk 135 crore remains unproduced, forcing the government to turn to imports at the expense of foreign currency reserves.

“Building a new fertiliser plant today would require Tk 20,000 crore. If we refurbish and restart the existing ones, they can still serve the economy and reduce dependence on imports,” said Abu Kawsar, general secretary of the workers’ union.

Contacted, Tajul Islam Bhuiyan, deputy general manager of the factory, said, “To keep the factory running smoothly, we need around 48 million cubic feet of gas daily at a pressure of 600 PSI.”

“A committee has already been formed to ensure gas connections to all fertiliser factories. The finance ministry has asked us about the issue, and we have informed them that if gas is supplied within 15 to 20 days, we will be able to resume production,” he said.

Mohammad Didarul Alam, deputy commissioner of Brahmanbaria, said they are in constant touch with the ministry concerned. “The factory is incurring huge financial losses. Once gas supply normalises, production can resume quickly.”