TDS Desk:

The Government has decided to purchase 40,000 metric tons of MOP fertilizer from a Canadian state-owned company and 25,000 metric tons of rock phosphate fertilizer from Cyprus-based Mid Gulf International Limited. It will cost 216 crore 63 lakh 75 thousand taka, i.e., Tk 216,63,75,000.

This was decided in the advisory committee meeting led by Finance Adviser Dr. Salehuddin Ahmed at the Secretariat on Tuesday (September 10). The Government Purchase Advisory Committee has approved two separate proposals in this regard.

It is learned that a proposal for the purchase of phosphate was sent from the Bangladesh Chemical Industries Corporation (BCIC) under the Ministry of Industry. TSP Complex Limited under BCIC is the only manufacturer of TSP Fertilizers. The main raw materials for the production of TSP fertilizers, phosphoric acid and phosphate, have to be imported from abroad. A total of 1.25 lakh metric tons of phosphate will be required to achieve the target of production of 1.90 lakh metric tons of TSP fertilizer in the 2024-25 fiscal year.

According to international norms, the estimated cost of 25,000 metric tons of phosphate to Chattogram port was fixed at $343,486 per metric ton by a committee. Among the two bidders, Cyprus-based M/S Midgulf International Limited quoted the lowest bid.

The lowest price in the current tender is $274.50 per metric ton, which is ($343.86-$274.50)= $68.986 or 20.05 percent lower than the last purchase price of $342.69 per metric ton.

As per that the total cost of purchasing 25,000 metric tons of phosphate will be 68 lakh 62 thousand 500 US dollars, equivalent to 80 crore 97 lakh 75 thousand taka, i.e., Tk 80,97,75,000, in Bangladeshi currency.

The advisory committee meeting approved the import of 40,000 metric tons of MOP fertilizer from Canada under the state-level agreement.

In the current 2024-25 fiscal year, the demand for MOP fertilizer in Bangladesh with safety stock is about 11 lakh metric tons. Out of this, BADC will import about 7 lakh metric tons of MOP fertilizer through the contract. The remaining MOP fertilizer requirement is imported at the private level.

It is known that the price of MOP fertilizer per metric ton is $282.625 and the import of 40,000 metric tons of fertilizer will cost 135 crore 66 lakhs, i.e., Tk 135.66 crore in Bangladeshi currency.