STAR BUSINESS REPORT

Bangladesh Chemical Industries Corporation (BCIC) has received a lukewarm response to its tender to import 200,000 tonnes of urea for replenishing stock ahead of the Aman season, a top official said yesterday.

The state-run entity found no response against its first international tender to buy 200,000 tonnes of urea. After it ran a second tender, it received bids for the supply of 50,000 tonnes of urea only.

“We are considering going for another tender,” said BCIC Chairman Md Fazlur Rahman.

The BCIC started to seek suppliers for urea after it was forced to shut five of the six urea factories amid gas supply concerns after the US-Israel war on Iran began on February 28.

The conflict reverberated across the Middle East, and Iran effectively closed the Strait of Hormuz – a key artery for global oil, gas and fertiliser trade, through which roughly 30 percent of global fertiliser flows.

Bangladesh requires more than 26 lakh tonnes of urea annually, and about three-quarters of demand is met through imports, as local plants often operate below capacity when gas is diverted to other sectors.

As of April 16, urea stock stood at 343,000 tonnes, according to agriculture ministry data. Saudi Arabia, the UAE and Qatar are Bangladesh’s main suppliers, providing nearly 10,00,000 tonnes annually. Since the war broke out, major producers in both countries have declared force majeure and temporarily halted exports, officials said.

Rahman said BCIC is working to diversify sourcing towards Russia, Brunei, Vietnam and Malaysia from the next fiscal year