The government has moved to buy 30,000 tonnes of urea fertiliser from Bangladesh’s only multinational production company KAFCO and Saudi Arabia’s SABIC Agri-Nutrients each.
The Cabinet Committee on Government Purchase approved the two proposals from Bangladesh Chemical Industries Corporation or BCIC in a meeting on Wednesday.
Bangladesh will buy the 60,000kg of fertiliser for more than Tk 3 billion at $0.56 per kg in either case.
The government raised the prices of urea fertiliser by Tk 6 to Tk 22 per kg considering the price of urea fertiliser in the international market to be Tk 81 per kg.
The government will still have to pay a subsidy of Tk 59 per kg even after the latest price hike, the Ministry of Agriculture said earlier this week.
But officials think that the subsidy amount will be lower due to the price of urea fertiliser being Tk 54-61 per kg this fiscal year.
Md Abdul Barik, additional secretary at the Cabinet Division, said the government will buy 30,000 tonnes from KAFCO for Tk 1.57 billion and the rest from SABIC for Tk 1.58 billion.
The meeting endorsed the import of 360,000 tonnes of urea fertiliser through Qatar’s Fertiglobe Distribution under a state-level agreement.
It also endorsed Bangladesh Agricultural Development Corporation or BADC’s proposal to import 100,000 tonnes of MOP fertiliser through a direct purchase agreement with Dubai-based Felco General Trading.
In addition, the committee sanctioned a direct purchase proposals to import 33 million litres of soybean oil.