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Ashuganj fertiliser factory shut for 16 months over gas shortage, losing Tk 135cr monthly
Published : Thursday, 13 August, 2026 at 2:34 PM
Observer Online Report
The Ashuganj Fertilizer and Chemical Company Limited (AFCCL), one of the country’s major urea fertiliser producers, has remained shut for 16 months due to a gas shortage, incurring an estimated loss of Tk 135 crore every month, officials said.
The factory continues to bear salaries, bank loan interest, maintenance and other operating costs despite the suspension of production.
According to factory sources, around 47-48 million cubic feet of gas is required daily to operate at full capacity. However, prolonged inadequate gas supply has kept production suspended.
Mohammad Abu Kawsar, general secretary of the Ashuganj Fertilizer Factory Workers-Employees Union, said the factory has produced around 400,000-500,000 tonnes of urea annually since beginning production in 1983.
He said the factory still has the capacity to produce fertiliser and could resume production quickly if adequate gas supply is restored. Several attempts have been made to prepare the machinery for restarting operations, but production could not resume due to insufficient gas.
Kawsar also warned that prolonged idling could reduce the efficiency of machinery and leave skilled workers inactive, creating uncertainty among employees.
Mohammad Tajul Islam Bhuiyan, deputy general manager (administration) of the factory, said the company continues to pay salaries and allowances, loan interest, maintenance and other operating expenses despite the shutdown.
“Altogether, the factory is incurring a financial loss of around Tk 135 crore every month,” he said.
Those concerned said the prolonged shutdown could affect the country’s domestic urea supply and increase dependence on imports, putting additional pressure on foreign exchange reserves and potentially on farmers if international fertiliser prices rise.
They urged the authorities to ensure adequate and uninterrupted gas supply to bring the factory back into production.
SKS
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Editor : Iqbal Sobhan Chowdhury
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Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Advertisement: 41053012; 01793317829, 01550707291, E-mail: [email protected], [email protected] Online: email: [email protected] 41053014; 01550707297 Advertisement: 01550707296
