Fertiliser production cheaper than imports: analysis

The government should increase fertiliser production instead of relying on imports to cater to growing demand in the agriculture sector, analysts said yesterday.
Fertiliser should be produced locally as it is cheaper than imports—due to low production costs, said Mohammad Tamim, a professor of Bangladesh University of Engineering and Technology (BUET).
He spoke at a discussion on the fertiliser sector organised by the Policy Research Institute at its office in the capital.
The government should supply gas to fertiliser factories instead of power plants—to boost fertiliser production, Tamim said, adding the power plants should depend on furnace oil.
“We have enough gas to supply to the agriculture sector for 30 years even though the same is not adequate for the power sector. The power sector should switch to alternate sources like coal,” he added.
AKM Abdul Quader, professor of BUET, said fertiliser consumption in Bangladesh since its introduction in 1951 has steadily increased as the country modernised agriculture to accomplish food security.
The total consumption of fertiliser increased from 3.02 million tonnes in 1995-96 to 3.82 million tonnes in 2010-11, Quader added.
Urea constituted about 67 percent of all the fertiliser used in 2010-11, while zinc sulphate and gypsum were only 3.75 percent of the total consumption, he said.
Now there is hardly any crop that does not use fertiliser, he said.
“The suspension of gas to the fertiliser factories will likely destroy the sector with a domino effect onto our efforts for self-sufficiency in food production,” he said.
The suspension of natural gas use in the fertiliser factories will reduce the machinery's working capacity and increase maintenance costs, he added.
The international fertiliser market has been volatile over the past four years, which makes domestic production preferable, he said.
In Bangladesh, fertiliser boosts rice production by around 47-50 percent, with 26 and 35 percent enhancement of Boro and Aman harvests respectively, said Abdul Latif Shah, chief scientific officer of Bangladesh Rice Research Institute.
The application of the Integrated Nutrient Management (INM) concept can partially reduce dependency on mineral fertiliser for intensively cultivated production systems, he said.
INM is a combination of both organic and inorganic fertiliser. It helps improve soil fertility with minimum use of chemicals, and help get a higher yield than from the sole use of chemical fertilisers.
In 1994-95, the six urea fertiliser production factories produced 2 million tonnes of urea per year, which almost met the country's domestic fertiliser demand.
However, in 2010-11, the domestic urea production fell to 1 million tonne against a 3 million tonne demand, and the supply gap was  met with $700 million worth of imports, said Takashi Itoh, project director of Asian Project Division of Toyo Engineering Corporation.
“If a similar supply gap occurs in future, it will be a serious blow to the economy of Bangladesh,” he said.
Itoh suggested Bangladesh should install new urea fertiliser production facility adapted to harness recent energy saving technologies.
The government should develop its marketing and distribution system to supply fertiliser to the farmers at right time and right place, said Quazi Shahabuddin, professional fellow of Bangladesh Institute of Development Studies.
The use of chemical fertiliser directly into the soil should be reduced in favour of spray-based liquid variety like in most developed countries, as it reduces waste, said Shamsul Alam, member of Planning Commission.
Chemical fertiliser is also harmful for soil and has a negative impact on the environment, Alam said.
He disagreed with the suggestion that fertiliser imports be reduced.
The demand of fertiliser will increase in the future and the government should develop long-term strategy for the sector, said Ahsan H Mansur, executive director of PRI.
The government should stop supplying gas to households and commercial transport sector to divert it to the agriculture sector, he added.