Fertiliser supply key to food security

Rice is the cornerstone of Bangladesh’s food security, feeding the nation and sustaining rural livelihoods. It provides two-thirds of the country’s caloric intake and half of its protein consumption. Fertilisers have played a pivotal role in the steady rise of rice production and have powered the transformation of agriculture over the past decades. Their impact on rice yield is profound. Research shows that applying fertilisers in balanced amounts can raise yields by about 40 percent compared with unfertilised fields. Nitrogen, mainly supplied through urea, is especially important as it supports plant growth, tillering and grain development. Studies suggest that cutting nitrogen use can reduce yields by roughly 100 kilogrammes per hectare. While this may appear modest at the field level, scaled up nationwide, it represents a serious setback.

Annual fertiliser demand in Bangladesh is nearly 7 million tonnes. Urea accounts for 2.6 million tonnes, followed by 1.5 million tonnes of DAP, 1.15 million tonnes of MOP and nearly 0.8 million tonnes of TSP. The country depends on imports for around 80 percent of total demand, with a significant share coming from the Middle East. The disruption of the Strait of Hormuz, through which one-third of global fertiliser trade passes, has triggered a supply shock that threatens not only prices but agricultural output itself. Around 44 percent of sulphur, 31 percent of urea, 18 percent of ammonia and 15 percent of phosphates move through the Hormuz region.

At home, the strain is twofold. Imports have been disrupted, and domestic production has faltered. A severe gas shortage has led to the shutdown of all state-owned fertiliser factories across the country. Disruptions in Qatar, which supplies two-thirds of Bangladesh’s LNG, have deepened the crisis. Global urea prices have risen by about 25 percent, while DAP is up 10 percent. In Southeast Asia, urea now costs more than 40 percent higher than before. With existing stocks, the government says it can meet fertiliser demand for the ongoing Boro season, which is now in its final stage. Demand for urea during the Aman season is relatively low. However, adequate stocks must be ensured, as shortages or price spikes can delay application, reduce nutrient uptake and ultimately cut yields by up to 10 percent. When supply falls, prices rise. Experts warn that rice prices could increase by 15-20 percent, hitting the poorest households hardest. Amid continuing disruption in the Middle East, Bangladesh needs to secure fertiliser imports well ahead of the next Boro season.

The country can no longer afford to treat fertiliser as just another farm input. It must be managed as a strategic resource. This calls for action on three fronts: diversifying import sources to reduce supply risk, modernising domestic urea production to improve efficiency, and equipping farmers with tools and support for balanced and efficient use, including deep placement and integrated nutrient management.

The Bangladesh Agricultural Research Council (BARC) has long recommended balanced fertiliser use based on soil testing. Following these guidelines can raise crop yields by 8-14 percent and save up to Tk 20,000 crore each year. One practical guideline is that for every kilogramme of DAP applied, urea use should be reduced by 400 grammes.

Fertiliser has underpinned Bangladesh’s rice success, yet that achievement remains vulnerable. In a time of geopolitical uncertainty, securing fertiliser supply must be treated as a national priority.

The writer is chairman and managing director of BASF Bangladesh Limited