Fertilizer crisis demands permanent solution

Fifty years ago, our farmers could not have imagined that the relationship between fertilizers, dollars, and gas would become so interconnected. Back then, most farmers relied on organic fertilizers. However, today, the country's agriculture is heavily dependent on chemical fertilizers. Producing these fertilizers requires factories that operate using electricity generated from gas. Additionally, a substantial amount of fertilizer must be imported each year, which necessitates the use of dollars. Currently, the country is facing severe shortages of both dollars and gas, disrupting the production and import of fertilizers.

According to reports published on Tuesday, December 24, the fertilizer crisis is unlikely to be resolved in the near future. The Ministry of Agriculture has pointed to ongoing shortages of dollars and gas as the primary causes of the crisis. The total annual demand for various types of fertilizers in the country is approximately 6.5 million tons. Due to an insufficient and unstable gas supply, fertilizer factories can only meet about 15% of the demand. The remainder of the fertilizer is imported through government agencies such as BCIC and BADC, as well as private importers from various countries. However, due to the dollar shortage, the opening of letters of credit (LC) for fertilizer imports has been suspended for at least three months since June. As a result, it has become increasingly difficult to build sufficient stockpiles, leading to a nationwide fertilizer supply crisis. The Ministry of Agriculture recently informed the Ministry of Finance that several foreign companies have failed to supply fertilizers due to delays in payment for imports. In some cases, contracted shipments have even been canceled.

According to sources from the Ministry of Agriculture, due to delayed payments in the 2023-24 fiscal year, although letters of credit (LC) were opened, shipments of five lots of TSP and DAP fertilizers from Morocco, Saudi Arabia, and Tunisia were canceled. Additionally, the shipping schedules for subsequent lots were delayed. Similarly, China and Russia also failed to deliver fertilizers on time. If this situation persists, there is a significant risk that future fertilizer supplies will be delayed, which could disrupt agricultural production and threaten food security. To mitigate this risk, it is essential that fertilizer exporters receive timely payments.

Fertilizer is a critical component of agriculture. Given the current state of the country’s agricultural sector, increasing reliance on organic farming is no longer a viable option. Additionally, we are unable to boost our supply of dollars or gas. So, what is the solution? The ongoing fertilizer crisis will undoubtedly endanger our food security. To address this, there have been discussions about borrowing at high-interest rates as a temporary measure. However, what is the long-term solution?

The issue of fertilizer shortages has been raised for several years. The government has provided various subsidies to offer short-term solutions, operating under the assumption that the situation will be managed for now and addressed later. Yet, these solutions have never provided long-term relief. How longer can this approach continue? The question remains: will this problem persist year after year?

The fertile land that our ancestors depended on for generations, cultivating crops using organic fertilizers, is now in such a dire state that no crops can thrive without chemical fertilizers. This land will continue to nourish future generations—what will their fate be? As the use of fertilizers increases each day, a food crisis looms as we struggle to meet demand. The signs of how severe the consequences may be in the future are already becoming clear. Fertilizers have become intertwined with our very existence. Therefore, instead of relying on temporary fixes, we must focus on developing long-term strategies for fertilizer use and agricultural sustainability, for the well-being of our nation, our land, and future generations.