Rabat – Bangladesh is set to import 40,000 tonnes of diammonium phosphate fertilizer also known as DAP from Moroccan phosphate giant OCP Group.
Bangladeshi outlet the Daily Star reported that the government approved the import of the Moroccan fertilizer in a meeting on Wednesday.
The news outlet emphasized that the import price will be $21 higher than the “per tonne price” set previously.
The development is due to the global context marked by the ongoing Russia-Ukraine war and lingering supply chain issues following the COVID-19 crisis.
Bangladeshi officials emphasized that the diammonium phosphate fertilizer will cost the country $1775 per tonne.
Previously the fertilizer’s cost for a tonne was set at $874 per tonne.
In 2021, however, the average cost of a tonne of diammonium phosphate was estimated at $616 per tonne.
Several countries expressed interest in Morocco’s fertilizer products amid the Ukraine-Russia conflict which has disrupted traditional supplies from Eastern Europe.
Recently, Peru announced its country’s plan to purchase Moroccan fertilizers.
“There have been talks with the governments of Morocco, Venezuela, and Bolivia. Once the Emergency Decree is approved, the purchase will proceed. The logistical coordination for the transfer is already being made so that it reaches the farmers quickly,” Peru’s Minister of Agrarian Development Oscar Zea said.
Morocco has around 75% of the world’s reserves of phosphate rock, a vital mineral used to make phosphate-based fertilizers.
The high demand for Morocco’s fertilizers is set to positively impact OCP’s revenues.
The group has shared substantial numbers with regard to its revenues for the first quarter of 2022.
In a recent press release, OCP announced that it reached a MAD 25.3 billion in revenue in the first three months.
The $2.5 billion in revenue represents a 77% increase compared to the same period in 2021.
OCP attributed the positive performance to the growing international demand for phosphate.
“The Russian-Ukrainian conflict intensified the tense situation in terms of supply/demand balance in the phosphate market and led to a further rise in prices, which was also supported by the increase in raw material costs, in particular ammonia,” OCP Group said in a statement.
OCP plans to increase its production volume by 10% in 2022 to meet the demand in a high-growth market.
