OCP to supply 40,000 t of DAP to Bangladesh at $866/t in key government deal

Bangladesh has approved a Bangladesh DAP import of 40,000 tonnes from Morocco’s OCP Nutricrops at $866/t, the government’s purchase committee decided on October 7, according to the state news agency BSS as reported by The Business Standard.

The Cabinet Committee on Government Purchase, chaired by Finance Minister Amir Khosru Mahmud Chowdhury, cleared the deal at its 48th meeting. The Ministry of Agriculture proposed the purchase under a government-to-government arrangement, with the Bangladesh Agricultural Development Corporation (BADC) as buyer and direct procurement as the method.

The total cost is estimated at 4.28 billion taka (Tk 427.81 crore), or about $34.6M. Officials said the cargo will help keep fertilizer supplies adequate for farmers.

The price reflects a phosphate market still squeezed by feedstock. Sulfur above $1,000/t has pushed up production costs across the industry, and OCP itself reported H1 2026 EBITDA down 28.5% as sulfur costs tripled.

Bangladesh’s own DAP output has been vulnerable this year. The state-owned DAP Fertilizer Company in Chattogram halted production in April after gas shortages cut its ammonia supply from neighboring urea plants, Prothom Alo reported at the time.

Further government-to-government and tender purchases are likely as Bangladesh builds stocks ahead of the Boro rice season.

Source: The Business Standard