Target of 27 lakh tonnes of fertiliser a year: three new factories planned in Bhola, Chattogram and Palash
Photo: Collected
The government has planned to build three new factories to boost fertiliser production. One will be in Bhola, with capacity to produce 1,700 tonnes of urea a day. There are also initiatives to set up a factory in Chattogram with capacity of 4 lakh tonnes of TSP a year, and one in Palash, Narsingdi, with capacity of 24 thousand tonnes of urea formaldehyde-85 (UF-85) a year.
The plan belongs to Bangladesh Chemical Industries Corporation (BCIC). Officials concerned at the Ministry of Industries say that if it is implemented, there is potential to raise domestic fertiliser production capacity, reduce import dependence, strengthen supply to agriculture and create new jobs in industry. The corporation has set a target of raising fertiliser production to 27 lakh tonnes within the next three to five years.
According to BCIC, it has a total of seven fertiliser factories, five of them urea and two non-urea. In FY2025-26, the country’s demand for urea was 26 lakh tonnes. In that fiscal year, BCIC’s factories produced 11 lakh 732.50 tonnes of urea, which is 42.34 per cent of total demand.
In the same fiscal year, demand for TSP was seven lakh 50 thousand tonnes and for DAP 14 lakh 85 thousand tonnes. Against this, BCIC’s factories produced 68 thousand 259 and 82 thousand 142 tonnes respectively, which is 9.10 per cent and 5.53 per cent of total demand. In other words, most of the demand is being met through imports.
BCIC officials said the government is giving a subsidy of Tk 23 thousand per tonne of urea, Tk 49 thousand 170 per tonne of TSP and Tk 98 thousand 840 per tonne of DAP. The decision to build three new factories was taken with these factors in mind. Emphasis is also being placed on raising the production capacity of existing factories and modernising them.
1,700 tonnes of urea a day in Bhola
The new factory is planned in Bhola to raise domestic production to meet the demand for urea. The proposed factory has a target of 1,700 tonnes of urea a day.
According to BCIC, the factory will need 45 to 50 million cubic feet of gas a day to keep running, so ensuring adequate gas supply is important for implementing the project. If the factory is built, the country’s urea production capacity will increase, and there will be scope to raise the contribution of domestic production to supplying fertiliser as farmers need it.
On this, BCIC Chairman Md Babul Mia said, ‘Raising domestic production capacity is urgent to meet the country’s demand for urea fertiliser. If construction of the proposed urea fertiliser factory in Bhola is implemented, it will play an important role in increasing production capacity. But adequate gas supply, technical preparation, financing and the necessary approvals are important for implementing such projects.’
4 lakh tonnes of TSP a year in Chattogram
To boost domestic production of phosphate fertiliser, there is a plan to set up a new TSP factory with an annual capacity of 4 lakh tonnes on unused land at the TSPCL complex in North Patenga, Chattogram. Production at BCIC’s TSP complex is currently being disrupted by a shortage of raw materials and plant problems. In this situation, a new factory will create scope to significantly increase TSP production capacity.
BCIC Chairman Md Babul Mia said, ‘A plan has been taken to set up a new factory to boost domestic production of TSP fertiliser. Necessary preparations are being advanced after reviewing the technical and economic aspects of the project. If the project is implemented, TSP production capacity will increase and there will be scope to raise the contribution of domestic production to the country’s fertiliser supply.’
UF-85 factory in Palash
There is a plan to set up a urea formaldehyde-85 (UF-85) factory with an annual capacity of 24 thousand tonnes on unused land of Ghorashal-Palash Fertilizer PLC in Palash, Narsingdi. If implemented, it will make use of existing industrial infrastructure and unused land, and there is also potential to raise production capacity of related industrial products.
On this, BCIC Chairman Md Babul Mia said, ‘There is scope to set up new industries by using the unused land of existing industrial establishments. For the proposed UF-85 factory in Palash, further activities need to be advanced considering production technology, market demand and economic feasibility. If the project is implemented, it will create scope to raise production capacity in the related industrial sector.’
Potential for new jobs
If the initiative for the three new factories is implemented, jobs may be created at various stages during construction and after production begins. Besides engineers, technologists, skilled workers and operating staff, there is also potential for indirect jobs in transport, supply, maintenance and related services. If the proposed projects in Bhola, Chattogram and Narsingdi are implemented, there may be scope to increase use of existing industrial infrastructure in those areas and expand local economic activity.
On this, BCIC Chairman Md Babul Mia said, ‘New factories may create jobs at various stages, from construction work to production and maintenance. But how many people will be employed can be said only after the project’s final design, production technology and manpower structure are determined. Along with increasing production capacity, we also want to give importance to developing skilled manpower in the industrial sector.’
By the numbers
According to a Risingbd report of 13 January 2026, a contract was signed with Saudi Arabia’s SABIC Agri-Nutrients Company to import a total of 6 lakh 30 thousand tonnes of urea for FY2025-26. Of this, 3 lakh tonnes were kept for emergencies and to cover production shortfalls at domestic factories.
The same report said the price of urea in the 40 thousand-tonne consignment approved that day was set at 390 US dollars per tonne.
Sources
Background sources: Risingbd, 13 January 2026
