Morocco suspends exports to Bangladesh, Dhaka says food security at risk

Morocco has reportedly suspended its fertilizer exports to Bangladesh due to unpaid debts from the Asian country. Faced with this situation, Bangladeshi authorities are working to release the necessary funds and restore the supply of fertilizer, which is crucial for the country’s food security.

Bangladeshi officials revealed that several suppliers, including China, Saudi Arabia, Canada and Morocco, are facing a total debt of $80 million, including shipping charges.

To resolve the deadlock, Agriculture Advisor Lt Gen (retd) Md Jahangir Alam Chowdhury last week sought the intervention of Financial Advisor Dr Salehuddin Ahmed to take steps to settle the debts.

Despite these challenges, the Ministry of Agriculture is hopeful that current stocks of triple superphosphate (TSP) and diammonium phosphate (DAP) will be enough to meet domestic demand until November 2024. However, Bangladeshi agricultural authorities anticipate a potential crisis from December 2024 if shortages persist.
According to a letter from the agricultural adviser, such a shortage of fertilizers could seriously disrupt agricultural production and cause unrest throughout the country.

For the financial year 2024-25, the demand for urea, TSP, DAP and MoP is estimated at 2.7 million, 0.75 million, 1.5 million and 0.95 million tonnes respectively. The Bangladesh Agricultural Development Corporation (BADC) plays a pivotal role in importing non-urea fertilizers, mainly through letters of credit opened by state-owned banks under government-guaranteed contracts.