Bangladesh will import 400,000 tons of diammonium phosphate (DAP) fertilizer per year from the Kingdom of Saudi Arabia (KSA) for the next two years.
A press release from the agriculture ministry on Tuesday said an agreement in this regard was signed between the Saudi state-owned company Ma’aden and Bangladesh Agricultural Development Corporation (BADC) in Riyadh on December 15.
A representative of Ma’aden, one of the fastest-growing mining companies in the world, and BADC Chairman M Ruhul Amin signed the agreement on their respective sides.
Agriculture Secretary Dr Mohammad Emdad Ullah Mian also was present.
Under the agreement, the company will supply 400,000 tons of DAP yearly and it will continue till 2026.
The Saudi company has agreed to supply the DAP fertilizer at least $2 less than the average market price of $745 per ton.
The new concession will add with $4 reduction of DAP price according to a previous agreement with Saudi Arabia making the total cut of price up to $6 per ton, saving nearly Tk28.8 crore annually from Saudi fertilizer import.
The Saudi company has agreed to impart training to Bangladeshi farmers on the optimum use of fertilizer and construct a fertilizer storehouse in Bangladesh.