Bangladesh and Saudi Arabia Cooperation: Importing 400,000 Tons of DAP Annually.
According to a press release from the Bangladesh Ministry of Agriculture on December 25, Saudi state-owned company Ma'aden and the Bangladesh Agricultural Development Corporation (BADC) signed an agreement on December 15 in Riyadh.
In the next two years, Bangladesh will import 400,000 tons of Diammonium Phosphate (DAP) annually from Ma'aden, with the cooperation agreement running through 2026. According to the agreement, the supply price of DAP will be $2 per ton lower than the market average price of $745, with an additional discount of $4 per ton, expected to save Bangladesh about 288 million taka (approximately $27 million) annually.
Furthermore, Ma'aden has committed to providing Bangladesh's farmers with training on optimal fertilizer use and assisting in the construction of a modern fertilizer warehouse. This cooperation not only meets Bangladesh’s fertilizer demand but also lays a foundation for its food security.
Russia’s Fertilizer Exports Set a New Record in 2024
According to RAPU data, Russia produced 59.3 million tons of fertilizer in 2023. Fertilizer production in Russia is expected to reach 63 million tons in 2024, marking a 6%-7% year-on-year increase and setting a new historical record.
Exports are expected to reach 40 million tons, a significant increase compared to 2023. Exports to Asia, Africa, and Latin America are projected to grow by 60%, 18%, and 20%, respectively. This achievement is the result of a cumulative investment of 2 trillion rubles over the past nine years, primarily for upgrading and expanding production facilities.
At the same time, Russia’s domestic fertilizer supply is expected to reach 5.5 million tons, ensuring agricultural production. RAPU expects this growth trend to continue in 2025, further consolidating Russia’s position in the global fertilizer market.
Pakistan’s Fertilizer Imports Surge from July to November
According to data from the Pakistan Bureau of Statistics (PBS), Pakistan’s fertilizer imports totaled 628,418 tons from July to November 2024, a 57.31% increase compared to the same period last year, valued at $382 million.
In comparison, during the same period last year, imports were 462,043 tons, worth $243 million. This increase reflects the strong demand for fertilizers in Pakistan’s agriculture.
At the same time, pesticide imports decreased by 35%, while imports of plastic materials and pharmaceuticals grew by 2.46% and 17.8%, respectively. This trend indicates that Pakistan is significantly increasing its investment in key agricultural chemicals to boost agricultural productivity.
Indonesia Seeks to Import Phosphate Raw Materials from Egypt
As a populous Southeast Asian nation committed to food security, Indonesia is seeking to import phosphate from Egypt to ensure its fertilizer supply. Indonesian President Prabowo stated that a bilateral trade agreement could lower tariffs, making Egyptian phosphate easier to enter the Indonesian market, thus boosting Indonesia’s fertilizer production.
In 2023, Indonesia imported 486,600 tons of fertilizer from Egypt, valued at $59.3 million, with Egypt being Indonesia’s fourth-largest fertilizer supplier. At the same time, palm oil is Indonesia’s main export product to Egypt.
This cooperation is expected to further develop trade between the two countries and help Indonesia achieve its food security goals.
Vietnam to Impose 5% VAT on Fertilizers: Boosting Domestic Fertilizer Competitiveness.
Recently, the General Secretary of the National Assembly in Vietnam issued a vote seeking opinions on several aspects of a legal draft, including the imposition of VAT on fertilizers. Under the newly passed law, a 5% VAT will be levied on fertilizers starting from July 1, 2025.
This policy aims to reduce the production costs of domestic fertilizers, improve the competitiveness of the domestic fertilizer market, and suppress the share of imported fertilizers.
While fertilizer prices may rise in the short term, in the long term, the domestic fertilizer market is expected to stabilize. The Vietnamese government stated that this policy will also help with national budget management and ensure fertilizer prices remain reasonable through market regulation mechanisms.
Summary
The global fertilizer market is undergoing profound changes, with regional cooperation, policy adjustments, and supply-demand shifts having a far-reaching impact on the market.
Bangladesh's long-term agreement with Saudi Arabia ensures agricultural supply, while Russia’s record-breaking production enhances its export position. Pakistan’s demand surge underscores the importance of agricultural chemicals. Meanwhile, Indonesia’s cooperation with Egypt offers more possibilities for food security, and Vietnam’s VAT policy strengthens the competitiveness of domestic fertilizers.
These developments indicate that the global fertilizer market is moving toward diversification and regionalization, with countries actively taking measures to respond to future challenges and opportunities.
Attention: The above information is for commercial reference only due to the diversity of information collected, and Kelewell is not responsible for the authenticity of the data.
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