HomeGEOPOLITICS & SECURITYSituation Report (SITREP)Fertilizer Supply Crisis in Bangladesh Amid Middle East War

Fertilizer Supply Crisis in Bangladesh Amid Middle East War

“A war we did not start is coming for our rice fields,” said Md Kawsar Uddin, Associate Professor at the International University of Business Agriculture and Technology (IUBAT). This reflects the growing anxiety within Bangladesh as the Iran war disrupts global fertilizer supply chains and begins to affect domestic agricultural stability.

The ongoing conflict has destabilized the flow of critical energy resources through the Strait of Hormuz, a vital route for global shipments of natural gas and petrochemical inputs used in fertilizer production. The war has constrained fertilizer exports and increased global prices due to supply disruptions and higher production costs. As a result, countries dependent on imports, including Bangladesh, are facing immediate shortages and rising procurement costs.

The Strait of Hormuz, a key energy route under effective closure, is fueling the energy crisis. Source: Wikipedia

Bangladesh’s vulnerability results from its heavy reliance on imported fertilizers such as urea and ammonia, alongside a domestic production system that is closely dependent on natural gas availability. The energy shock from the Middle East crisis has forced the government to divert scarce natural gas supplies toward electricity, leaving fertilizer factories struggling to operate. As a result, four of five fertilizer factories have had to halt production entirely. Chittagong Urea Fertilizer Limited (CUFL) and Karnaphuli Fertilizer Company Limited (Kafco), two state‑owned fertilizer plants, have stopped indefinitely after a government directive to conserve shrinking natural gas supplies. Before the shutdown, these facilities were receiving around 70–80 million cubic feet of gas per day, with CUFL alone needing roughly 48–52 million cubic feet to run at full urea and ammonia output.

Chattogram Urea Fertilizer Limited (CUFL) requires around 48–52 million cubic feet of gas each day to maintain regular fertilizer production. Source: Collected

This sudden drop in local fertilizer manufacture comes at a time when imported fertilizer is both expensive and difficult to secure due to disruption in liquefied natural gas (LNG) supplies from Qatar and other Gulf producers due to the Iran conflict and related blockages in the Strait of Hormuz. Although a ceasefire has been announced, it is unlikely to bring immediate relief. Ongoing shipping disruptions and market uncertainty continue to constraint global energy flows. Moreover, long-term LNG supplies from key partners such as Qatar are unlikely to stabilize quickly, with delays likely to continue due to contractual, logistical and security issues. Officials have warned that if the shutdown continues, Bangladesh may be compelled to import much more urea at significantly elevated global prices, further straining government budgets and farmer incomes.

In response to the shortages and the effects on fertilizer production, state energy agencies have moved to secure additional LNG supplies on the spot market. A tender was issued for the delivery of two LNG cargoes for mid‑March 2026, to stabilize energy availability for critical industries, including fertilizer production. State-run Rupantarita Prakritik Gas Company Ltd (RPGCL), had floated tenders to buy two LNG cargoes from the spot market for delivery during the April 15-16 and April 21-22 and the submission deadline has been extended to April 23. In addition, a vessel carrying about 68,648 tones of LNG from Nigeria arrived at the floating storage and regasification unit (FSRU) at Moheshkhali Island on April 5.

An LNG cargo vessel at sea. Source: Reuters

If these imports are delayed or insufficient, the fertilizer shortage could worsen, putting crop production at risk just when farmers need reliable supplies for upcoming key planting seasons. By seeking additional LNG cargoes, the government is showing both the urgency of the situation and its effort to protect farmers from the harsh effects of the global energy shock. For farmers, especially those growing rice, the staple crop of Bangladesh, this means facing shortages of essential fertilizers and rising costs. Many farmers are now forced to apply less fertilizer than their crops require or delay planting altogether, putting both their livelihoods and the nation’s food supply at risk. This supply problem has become a daily struggle for families trying to grow enough food to survive, threatening both agricultural productivity and broader national food security.

This crisis has added to the many challenges Bangladesh’s farmers were already struggling with, turning a long‑standing agricultural problem into a broader threat to rural livelihoods and food security. Diesel shortages are also affecting irrigation and harvesting. Farmers across Chattogram, Jamalpur, Rajshahi, Sylhet, Faridpur, Lalmonirhat, and Nilphamari report that diesel stations frequently run dry or supply only a fraction of what is needed for pumps and machinery, forcing them to buy at higher prices or go without fuel altogether.

Many farmers rely on diesel‑powered irrigation systems and mechanized machines, and without adequate fuel, fields cannot be properly irrigated. Thus, when essential cultivation tasks are delayed or left undone, crops like Boro rice are put at risk during their most critical stages of growth. These conditions risk lower yields and increased post‑harvest losses, particularly in haor and low‑lying regions where timely harvesting is essential to prevent damage from floods and pests, and where delays due to fuel shortage could result in significant losses.

A man waits with his tractor to collect diesel at a filling station in Baghia, Shariatpur Sadar upazila, on April 3, 2026. Source: Prothom Alo

Across northern and central Bangladesh, diesel scarcity has forced some farmers to switch back from mechanized plowing to traditional hand tools because they cannot access or afford the fuel needed for tractors and pumps. Even when diesel is available, many have to pay above the official price. Md Mamun, a farmer residing in Barguna, is unable to use his power tiller because of the shortages, said that he sometimes pays Tk 120–130 per liter, well above the government‑set rate of Tk 100, simply to keep essential machines running. This situation not only raises production costs sharply but also reduces farmers’ already slim profit margins.

Agriculture in Bangladesh employs over 40% of the labor force and remains central to food security and poverty reduction, yet rising input costs for diesel, fertilizer, seeds, and other essentials are squeezing small and marginal farmers mostly. According to the Department of Agricultural Extension (DAE), the irrigation season in Bangladesh runs from December to May, the critical period for Boro and other staple crops. Farming during this time depends heavily on diesel‑powered machinery. Across the country, more than 2.13 million agricultural machines are in use, including deep and shallow tube wells, low‑lift pumps, power tillers, tractors, combine harvesters, threshers, and other essential equipment needed for planting, irrigation, and harvesting.

This includes over 10,700 combined harvesters and nearly 497,000 threshers and related machines, all important for farming. Operating this machinery requires an estimated 1.25 million tonnes of diesel during the irrigation season. According to the Bangladesh Agricultural Development Corporation (BADC), irrigation equipment alone consumes about 760,000 tonnes of fuel over the six‑month period.

Farmers fear heavy losses as fields dry up due to a lack of irrigation. Source: Bonik Barta

This shows how acute diesel shortages directly threaten farmers’ ability to maintain crop schedules, irrigate fields, and perform timely harvesting. With fuel constraints, many machines remain idle, forcing labor-intensive manual work that slows planting and harvesting, reduces efficiency, and can ultimately lower yields. For many rural families, every additional cost or delay in planting and irrigation quickly leads to lower incomes and food insecurity. With the Boro season approaching and staple crops at stake, the crisis shows the vulnerability of Bangladesh’s food system to global conflicts, supply chain disruptions, and energy shocks. Without urgent action to stabilize fertilizer and energy supply chains, the crisis risks leaving long‑lasting damage to agricultural productivity, rural livelihoods, and national food security.

Verification Note: The information in this report has been compiled from multiple credible sources and cross-checked for consistency. Data and reports have been used to corroborate events where possible. While every effort has been made to ensure accuracy, access limitations may prevent independent verification of all details.

afiya.ayshi@istr.global |  + posts

Afiya Ibnath Ayshi is a Security and Strategic Reporting Fellow at Bangladesh Defence Journal. She covers defence, foreign affairs, and humanitarian issues, focusing on how regional and global developments influence Bangladesh’s security and diplomacy. A graduate in English from the University of Dhaka, she brings a research-based and balanced approach to her work.

Popular

Latest