By Asma Parvin :

Uncertainty has emerged over the import of non-urea fertilisers by the private sector, as the Ministry of Agriculture has sought fresh price offers from importers instead of awarding contracts to the lowest bidders under the existing open tender process.

Importers allege that the ministry delayed the process after tenders were submitted on August 18 and subsequently issued a notice seeking new “price offers” on September 2. They claim the move has stalled the opening of letters of credit (LCs), raising concerns that prolonged delays could make it difficult to procure the required fertiliser amid volatility in international prices and shipping costs.

The importers fear that failure to make a quick decision could disrupt fertiliser supplies and ultimately affect agricultural production in the country.

The government initiated the private-sector import programme to ensure adequate fertiliser supplies for agricultural production. On August 3, the Ministry of Agriculture invited tenders for the import of 670,000 metric tonnes of diammonium phosphate (DAP), 420,000 metric tonnes of muriate of potash (MOP) and 270,000 metric tonnes of triple super phosphate (TSP).

According to the tender notice, an importer could submit only one proposal for each type of fertiliser. The proposal was required to specify prices on a country-by-country basis, while bids containing multiple prices against the same producing country were liable to be rejected.

A total of 47 leading importers participated in the tender process, submitting their bids on August 18.

Documents reviewed in connection with the tender show that 10 companies participated in the TSP tender. Importers allege that six bids were liable for rejection for listing multiple countries in violation of the tender conditions. The companies named include Faiyaz Trading Corporation, Desh Trading Corporation, NRK Holding, Bulk Trade International and Noapara Traders.

For DAP, 22 companies submitted bids, of which 14 were allegedly liable for rejection for violating the tender conditions. Among the companies named are NRK Holding, Desh Trading Corporation, Bulk Trade International, Mugdho Traders, Akn Enterprise, Sun Shining Limited, OF Enterprise, Maunata Trade International, Fariha Trading, Faiyaz Trade International, Noapara Traders and Faiyaz Trading Corporation.

Similarly, 15 companies participated in the MOP tender, with five allegedly liable for rejection for listing multiple countries. These included Bulk Trade International Ltd, NRK Holding, Bulk Trade International, Desh Trading Corporation and Mugdho Traders.

Importers claim that despite the tender conditions and the presence of eligible lowest bidders, the contracts have not yet been awarded. Instead, a notice signed by Deputy Secretary Md Maksudur Rahman of the Ministry of Agriculture on September 2 sought fresh price offers.

Several importers described the move as inconsistent with the principles of an open tender process and alleged that it could further delay the procurement process.

Some businessmen have also alleged that the fresh price-offer process could provide undue advantage to a particular party. They have raised questions about the role of Bangladesh Fertiliser Association President Mosharraf Hossain and alleged an informal understanding involving senior officials of the ministry. These allegations, however, could not be independently verified.

Importers also alleged that the move may be linked to outstanding payments from a previous fertiliser procurement process involving Mosharraf Hossain. The claims remain allegations and require verification from the concerned authorities.

An importer who participated in the tender told this newspaper on condition of anonymity that the bidders had quoted their lowest possible prices after analysing international market conditions.

“We submitted the lowest rates in the open tender based on international market prices. Asking for fresh price offers now means keeping the entire process hanging. We cannot open LCs because we have not received work orders. Fertiliser prices and shipping costs are rising continuously in the international market. If the process is delayed further, it may no longer be possible to import fertiliser at the quoted prices,” the importer said.

Another businessman, also speaking on condition of anonymity, said international fertiliser prices and freight charges change frequently.

“If the import process is delayed even for a few more days because of personal or group interests, supply could be disrupted due to dollar and logistics constraints. If fertiliser does not arrive on time, millions of farmers could face difficulties during the upcoming Rabi and Boro seasons,” he said.

Experts say the government needs to finalise the import process quickly to avoid disruptions caused by fluctuations in the global market. They warn that delays in importing the planned 1.36 million tonnes of fertiliser could put pressure on the domestic supply chain and affect farmers during the upcoming agricultural seasons.

The Ministry of Agriculture and other parties named in the allegations would need to provide their responses before the claims can be independently established.