Bangladesh has secured a significant deal with Saudi Arabia to import 12 lakh metric tons of Diammonium Phosphate (DAP) fertilizer over the next two years.
Key Takeaways:
The agreement, signed on December 15 in Riyadh between the Bangladesh Agricultural Development Corporation (BADC) and Saudi state-owned company Ma'aden, aims to ensure a stable and affordable supply of this crucial input for Bangladeshi farmers.
Under the terms of the agreement, Ma'aden will supply 6 lakh metric tons of DAP fertilizer annually in 2025 and 2026. This represents a substantial volume to meet the growing fertilizer demands of Bangladesh's agricultural sector.
A key highlight of this deal is the competitive pricing. The Saudi company has agreed to offer DAP fertilizer at least two dollars below the average market price of $745 per ton. This, combined with a previous four-dollar price reduction secured in an earlier agreement with Saudi Arabia, translates to a total price cut of six dollars per ton. This significant discount is expected to save the Bangladeshi government nearly Taka 28.80 crore (approximately $2.4 million) annually on fertilizer imports.
Beyond the price advantage, this agreement offers several other benefits. Ma'aden has committed to providing training programs for Bangladeshi farmers on the optimal use of fertilizers. This knowledge transfer will enhance agricultural productivity and ensure that farmers maximize the benefits of fertilizer application. Furthermore, the Saudi company has agreed to construct a fertilizer storehouse within Bangladesh, which will improve the logistics of fertilizer distribution and ensure timely availability to farmers across the country.
The Bangladesh government, through BADC, has been actively pursuing strategies to secure a consistent supply of non-urea fertilizers at competitive prices. This agreement with Ma'aden is a crucial step in this direction. By ensuring the timely availability of DAP fertilizer at affordable prices, the government aims to support farmers, boost agricultural production, and enhance food security within the country.
This agreement with Saudi Arabia underscores the importance of strong bilateral relationships in ensuring the agricultural needs of Bangladesh are met. It is expected to play a crucial role in supporting the country's agricultural sector and contributing to its overall economic growth.
