Urea left to decay outdoors as warehouse project stalls for six years

Just beyond Bhairab Bridge lies Noapara, an industrial and commercial center in Jashore, where sacks of urea fertilizer worth crores of taka have been left under the open sky for over a month.

The transport contractor left the fertiliser there because the importer, Bangladesh Chemical Industries Corporation (BCIC), is unable to accept delivery due to a lack of warehouse space.

Although the BCIC has a project in hand to build new fertiliser warehouses in 34 districts, the project has not seen any progress for six years.

Despite the project’s impending deadline, not a single warehouse has been constructed, and no funds for their construction have been spent in the last two financial years.

Transport contractor Rafiqul Islam said 100 tonnes of fertiliser were imported on 16 June for several districts, including Jashore. “Ideally, this fertiliser should be stored in warehouses and gradually distributed to neighbouring districts.”

BCIC sources said that other than Noapara, transport contractors collect imported urea from ports and store them in the open in Nagarbari in Pabna, Baghabari in Sirajganj, and Santahar in Bogura.

The corporation distributes fertilisers from these locations to 32 warehouses across the country, they said.

However, the storage capacity of these warehouses is only 3.71 lakh tonnes, while the country’s demand is 27 lakh tonnes, they said. As a result, 7-8 lakh tonnes of fertiliser remain exposed to the elements for long periods, leading to quality degradation.

Warehouse projects stalled for 6 years

A report by the Implementation Monitoring and Evaluation Division (IMED) released in June said that due to land acquisition delays, political interference, and BCIC’s negligence, the main construction work of BCIC’s warehouse projects could not get underway even though six years have gone by.

Besides, frequent changes of project managers, tender issues, and delayed fund disbursements has caused delay, said the report.

The IMED report further said BCIC decided to build these warehouses at a cost of Tk2,482 crore in 2018 to ensure timely delivery of urea fertiliser to farmers.

The report said the new warehouses will allow an additional 8 lakh tonnes of fertiliser to be stored. This will save the government Tk600 crore annually, and ensure a quick supply to farmers when needed.

The IMED has also called for a completion of the warehouse project by 2025.

Project Director Manjurul Haque said delays in land acquisition have been behind the project’s slow progress. Land in Patuakhali, Kushtia, and Madaripur is yet to be acquired.

Urgent need for warehouse

According to BCIC data, the annual demand for urea in Bangladesh is 27 lakh tonnes, while five domestic factories produce only 6.5 lakh tonnes.

The remaining amount is imported, but the country’s existing 32 warehouses can store no more than 3.71 lakh tonnes.

This shortage forces fertiliser to be stored in heaps, leading to delays for farmers, increased costs, and deteriorated quality due to exposure, said sources involved.

Md Jalal Uddin, director general of the Soil Resource Development Institute, said exposure to open air causes ammonia volatilisation, reducing the nitrogen content and effectiveness of urea as a fertiliser.

He noted that this not only diminishes quality but also reduces weight, with a potential loss of 15%-20%.

To address the issue, other ministries such as agriculture, food, and commerce are also building warehouses nationwide.

These include storage facilities for perishable goods. For instance, the Bangladesh Agricultural Development Corporation (BADC) is spending Tk351 crore on maintaining and rehabilitating existing fertiliser warehouses.