New Delhi, May 25 (IANS) Bangladesh is facing rising concerns over food security and inflation as continued disruptions in the Strait of Hormuz threaten both global fuel and fertiliser supply chains, a report has said, warning of a potential knock-on impact on agriculture and rural incomes.

A report published in The Financial Daily highlighted that while immediate attention in the country remains focused on surging fuel costs, a more significant risk is emerging from tightening fertiliser availability, which is critical for crop production in a largely agriculture-dependent economy.

Nearly 30–35 per cent of global fertiliser trade moves through the Strait of Hormuz, alongside about one-fifth of global oil shipments, making the route a key artery for both energy and agricultural inputs, it said.

It further showed that any prolonged disruption is expected to push up fertiliser prices further, with urea already witnessing sharp gains in global spot markets, raising concerns for import-dependent countries such as Bangladesh.

Moreover, higher input costs, combined with elevated diesel and LNG prices, could directly impact irrigation, crop yields and overall farm productivity in the upcoming agricultural cycles, including the crucial Aman rice season.

Some regional economies have already begun adjusting procurement strategies, with reports of countries expanding food stockpiles and seeking alternative fertiliser sources amid growing uncertainty in Middle Eastern supply routes.

Bangladesh — which imports a significant share of its fertiliser requirements and relies heavily on LNG-linked production chains — is particularly exposed to such external shocks, according to the report.

Rising production costs are also expected to feed into higher food prices, adding pressure on household budgets at a time when inflationary concerns are already elevated, it added.

The report cautioned that if disruptions persist, fertiliser markets could remain volatile for an extended period, forcing governments to rely more on spot markets and expensive emergency procurement.

“The energy crisis may dominate headlines today. But the deeper threat approaching Bangladesh appears increasingly likely to come from food insecurity,” it said.

–IANS

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