Bangladesh's Food Security Tied to Global Energy Markets

For Bangladesh, energy and food security are increasingly intertwined. A recent fertiliser shortage exposed vulnerabilities in the country's food system, which is heavily reliant on global energy markets through fertiliser, irrigation, transport, and biofuels.

The FAO Food Price Index reached 131.1 points in July 2026, its highest level in three years, due in part to rising energy prices and disruptions to energy and fertiliser markets. The World Bank projects fertiliser prices to rise by more than 30% in 2026 amid these market fluctuations.

One key factor is the use of natural gas as both an energy source and a feedstock for urea production. Higher gas costs raise fertiliser-production costs directly, and disruptions to gas supplies can reduce domestic production or force factories to suspend operations, leaving Bangladesh reliant on imports.

The country's annual fertiliser requirement is projected at about 6.77 million tonnes for FY2026-27, but state-owned factories produced only 1.106 million tonnes in FY2025-26 against demand of about 6.6 million tonnes, meeting just 17% of requirements with more than 80% supplied through imports.

To mitigate these risks, Bangladesh must ensure fertiliser security by diversifying import sources, procuring well ahead of peak planting periods, and maintaining strategically located reserves for critical seasons. This could blunt the consequences of any single disruption to global markets or energy supplies.