Bangladesh approves 40,000-tonne DAP purchase from OCP Nutricrops at $866/t

Bangladesh has authorised the purchase of 40,000 tonnes of diammonium phosphate (DAP) from Morocco’s OCP Nutricrops at $866 per tonne. Fertilizer Daily Markets reported that the government’s purchase committee approved the import on 7 October, citing information from state news agency BSS carried by The Business Standard. The purchase is intended to support fertilizer availability for farmers.

The Cabinet Committee on Government Purchase cleared the transaction at its 48th meeting, chaired by Finance Minister Amir Khosru Mahmud Chowdhury. The Ministry of Agriculture submitted the proposal under a government-to-government arrangement. Bangladesh Agricultural Development Corporation (BADC) will act as the buyer, with the fertilizer being acquired through direct procurement rather than a tender.

The estimated bill is 4.28 billion taka, equivalent to Tk 427.81 crore, or approximately $34.6 million, according to Fertilizer Daily Markets. Officials described the cargo as a way to maintain adequate fertilizer supplies for farmers. The report did not specify a delivery schedule for the approved volume or identify the port through which the shipment would enter Bangladesh.

The transaction comes against a backdrop of pressure on phosphate production costs. Fertilizer Daily Markets linked the pricing environment to expensive feedstocks, reporting sulphur prices above $1,000 per tonne. It also cited OCP’s reported 28.5% decline in first-half 2026 EBITDA as sulphur costs tripled, illustrating the cost pressures described in the source.

Domestic DAP production has also faced disruption. The state-owned DAP Fertilizer Company in Chattogram stopped production in April after gas shortages restricted ammonia supplies from neighbouring urea plants, according to a Prothom Alo report cited by Fertilizer Daily Markets. Looking ahead, Fertilizer Daily Markets said further purchases through government-to-government agreements and tenders were likely as Bangladesh accumulated fertilizer stocks before the Boro rice season; it did not identify additional confirmed deals.