Bangladesh Orders 40,000 Tons of Moroccan DAP from OCP
Bangladesh Continues Phosphate Fertilizer Purchases from Moroccan OCP Group
On October 7, in Dhaka, the Ministerial Committee for Public Procurement (CCGP) approved the acquisition of 40,000 tons of diammonium phosphate (DAP) from OCP Nutricrops, the fertilizer division of the Moroccan public group OCP.
The contract is priced at $866 per ton, approximately 8,010 dirhams. This marks the lowest rate recorded among the ten approved DAP lots by the committee since August 12.
A 320 Million Dirham Order
The order was submitted by the Bangladeshi Ministry of Agriculture during the 48th meeting of the CCGP. The total cost is 4.28 billion takas, which is about $34.64 million or nearly 320 million dirhams.
This operation is being carried out through direct purchasing procedures outlined in the government-to-government agreement established between OCP Nutricrops and the Bangladesh Agricultural Development Corporation (BADC).
With this new delivery, Bangladeshi authorities aim to maintain a sufficient supply of fertilizers for the agricultural sector, particularly amid ongoing challenges regarding the availability and cost of fertilizers for agricultural production.
OCP Reaches 590,000 Tons Ordered Since August
This latest order brings the total volume of phosphate fertilizers purchased from OCP Nutricrops by the CCGP to 590,000 tons since August 12.
These purchases, approved over seven meetings, represent a total value of 59.56 billion takas, approximately $481.6 million, and nearly 4.46 billion dirhams.
DAP is the main component of these orders, with 400,000 tons spread across ten lots of 40,000 tons, cumulatively valued at around $354.1 million. The rest consists of triple superphosphate (TSP), with 190,000 tons spread over six lots, valued at approximately $127.5 million.
The various approvals occurred between August 12 and October 7, with volume changes corresponding to each committee meeting.
Moroccan DAP Price Dips 3%
The price of DAP supplied by OCP Nutricrops has been on a downward trend since late August. The rate of $866 per ton determined on October 7 reflects a decrease of approximately 3.1% from the peak of $894 reached during orders approved on August 24 and September 2.
The price was $891.67 per ton on August 12, subsequently dropping to $889.33 on September 9, followed by $885 on September 16, and $877 on October 1.
TSP also recorded a gradual decline, with prices falling from $678 per ton for one of the lots approved on August 24 to $667.67 for two lots on October 1. In June, one lot of Moroccan TSP was approved at $726.33 per ton.
Price Disparity with Private Importer Purchases
The pricing attained by OCP Nutricrops starkly contrasts with that set for private imports. On September 16, the CCGP authorized nineteen private importers to acquire 500,000 tons of DAP at a rate of $938 per ton.
These supplies could potentially come from several countries including Morocco, Russia, Jordan, Tunisia, and Saudi Arabia. Thus, the price for these imports exceeded the OCP Nutricrops rate by $53 per ton on the same day for its two DAP lots.
Strengthened OCP-Bangladesh Partnership
These orders fall under the renewed agreement between OCP Nutricrops and the BADC. The two partners have cooperated since 2008 to supply the Bangladeshi market with phosphate fertilizers.
The agreement sets the stage for the possibility of delivering up to 1.3 million tons of phosphate fertilizers for 2026 and 2027, including a maximum of 750,000 tons of TSP.
The orders approved since August 12 already represent at least 45% of this potential volume. Before the commencement of the 2026-2027 budget year on July 1, the Bangladeshi committee also validated three lots of Moroccan TSP in June, totaling 90,000 tons at prices ranging from $688 to $726.33 per ton.
This new transaction further underscores the pivotal role that Moroccan phosphate fertilizers play in Bangladesh’s agricultural supplies, highlighted by a series of recent DAP and TSP orders.
