Bangladeshi fertiliser to help nourish Nepal’s agriculture

The government of Bangladesh is set to export 50,000 tonnes of granular urea fertiliser to Nepal under a repayable loan assistance. 

This includes 40,000 tonnes of bulk and 10,000 tonnes of bagged granular urea fertiliser which will be procured from the Karnaphuli Fertilizer Company Limited (Kafco). 

It will cost Tk109.64 crore in total, according to the industries ministry sources.

The industries ministry is going to place the proposal for exporting the fertiliser in front of the Cabinet Committee on Public Procurement today. Finance Minister AHM Mustafa Kamal will preside over the meeting.

According to the Ministry of Industries, the foreign ministry in a letter dated August 30 attached a verbal note of the Ambassador of Nepal to Bangladesh dated on August 26, which stated they were willing to procure 50,000 tonnes of urea fertiliser from Bangladesh as repayable loan assistance.

In the letter, the Ministry of Foreign Affairs requested the Ministry of Industries to consider providing assistance to Nepal on an emergency basis. 

The industries ministry then requested the chairman of Bangladesh Chemical Industries Corporation (BCIC) on August 31 to give an urgent opinion on the matter. 

BCIC replied that Kafco could supply the fertiliser to Nepal as per the demand.

Later, a high-level virtual meeting was held on behalf of the government of Bangladesh to discuss the overall issue, with Industries Secretary K M Ali Azam in the chair.

At the meeting, Kafco decided to import 50,000 tonnes of urea fertiliser from Bangladesh and supply it to the government of Nepal on the basis of repayable loan assistance.

According to sources in the industries ministry, a letter was sent to the Finance Division from them to approve the financial implications applicable for the export. 

In response to the letter, the Finance Division asked Kafco to give the loan against trust receipt of the counter-guarantee given by BCIC in favour of the export. However, in this case, a condition has been imposed that the money mentioned in the repayable loan assistance be returned to the concerned bank.

On October 11, Prime Minister Sheikh Hasina approved a proposal by the BCIC to import the fertiliser.

The Ministry of Law, Justice and Parliamentary Affairs has also vetted and suggested amendments to the draft agreement on the export. 

Afterwards, the Ministry of Industries sent a letter to Ministry of External Affairs asking it to take necessary steps to sign the amended agreement between Nepal and Bangladesh.