Ammonia Crisis Shuts Down Production at Country’s Lone DAP Fertilizer Plant

Production at the country’s only state-owned Di-Ammonium Phosphate (DAP) Fertilizer Company Limited has been suspended due to an acute shortage of ammonia, a vital raw material. Located in the Rangadia area of Anwara Upazila, the plant halted all operations at approximately 8:00 pm on Saturday (April 18) after its remaining ammonia reserves were exhausted.

The DAP factory does not produce its own ammonia. Instead, it relies on supplies from two neighboring giants Chittagong Urea Fertilizer Company Limited (CUFL). Karnaphuli Fertilizer Company Limited (KAFCO)

However, both CUFL and KAFCO have been shut down since March 4 following a government directive to divert gas supplies amid a nationwide energy crisis. While the DAP plant managed to sustain production for nearly six weeks using stored reserves, the lack of fresh inflow finally forced a total shutdown this weekend.

Operated by the Bangladesh Chemical Industries Corporation (BCIC) under the Ministry of Industries, the DAP plant is critical to national food security. It was established in 2006 to provide nitrogen and phosphorus-rich compound fertilizers necessary for balanced soil health.

The facility consists of two units—DAP-1 and DAP-2—with a combined daily production capacity of 1,600 metric tons. The current suspension raises concerns regarding the availability of fertilizer for the upcoming farming seasons if the gas crisis persists.

Mohammad Mainul Haque, Managing Director of DAP Fertilizer Company Limited, confirmed the suspension. "We haven't received a fresh supply of ammonia since the gas shutdown on March 4," Haque stated. "We utilized our buffer stocks to keep the machines running as long as possible. Unfortunately, with the stock now at zero, we have no choice but to wait. Production will resume immediately once the ammonia supply is restored."