The government of Bangladesh has approved the purchase of 35,000 tons of Muriate of Potash (MOP) fertilizer from Russia at a cost of USD 12.63 million, equivalent to BDT 1.55 billion. The per-ton price has been set at USD 361. The fertilizer will be imported from Russia’s JSC “Foreign Economic Corporation.”

The decision came on Tuesday during a meeting of the Cabinet Committee on Government Purchase, held at the Secretariat and chaired by Economic Affairs Adviser Dr. Salehuddin Ahmed.

Alongside the MOP procurement, the government also approved the purchase of 60,000 tons of urea fertilizer based on proposals from the Ministry of Agriculture and the Ministry of Industries. The total expenditure for this consignment will amount to BDT 4.72 billion.

To strengthen fertilizer storage and distribution infrastructure, the committee approved the construction of a 25,000-ton capacity warehouse in Rajshahi. Officials explained that the storage facility will ensure a smooth supply of fertilizers for farmers in the region and help maintain reserves during emergencies.

The committee also gave approval to a proposal from the Ministry of Industries to import 30,000 tons of bulk granular urea fertilizer from Saudi Arabia. The purchase will cost USD 13.43 million, or BDT 1.65 billion, with the price fixed at USD 447.50 per ton.

In addition, approval was granted for another Ministry of Industries proposal to procure 30,000 tons of bagged granular urea fertilizer from Karnaphuli Fertilizer Company Limited (KAFCO), Bangladesh. This procurement will involve USD 12.45 million, equivalent to BDT 1.53 billion. The per-ton cost has been determined at USD 414.875.

The meeting further endorsed a proposal under the “Construction of 34 Buffer Warehouses for Fertilizer Storage and Distribution Across the Country” project. This approval covers Package-4, Lot-2, relating to the construction of a warehouse in Rajshahi with a storage capacity of 25,000 tons.

According to officials, once completed, the Rajshahi buffer warehouse will make it easier to distribute fertilizer to local farmers according to seasonal demand, while also maintaining sufficient stockpiles to address potential shortages.

For the Rajshahi warehouse construction, tenders were invited under an open bidding process. Six companies submitted proposals, out of which one was deemed financially and technically responsive after evaluation. Following the recommendation of the Tender Evaluation Committee, the project will be jointly implemented by Messrs Mark Builders Limited (MBL) and Rowshan Elevator Limited (REL), who submitted the lowest responsive bid. The total construction cost will be BDT 670.99 million.

Government officials highlighted that these procurement and infrastructure decisions are part of broader efforts to ensure uninterrupted fertilizer supplies, safeguard food security, and support agricultural productivity across the country.