Farmers in several districts are struggling to obtain fertilizer at government-fixed prices as Bangladesh prepares to overhaul its distribution network by appointing thousands of new dealers.
The deadline for applications under the revised dealership system is September 10. Each applicant seeking a wholesale dealership must deposit Tk5 lakh as a security deposit.
The government says the new system will bring fertilizer closer to farmers and reduce the distance they need to travel to collect it. But even before the new network is established, shortages have triggered protests, road blockades and break-ins at dealers’ warehouses.
Stakeholders blame several factors, including changes to the dealer network, restrictions on inter-district fertilizer movement, delayed imports and alleged attempts by vested interests to disrupt the new policy.
The Bangladesh Chemical Industries Corporation (BCIC) currently has around 5,600 wholesale dealers. Under the proposed system, each union will have a wholesale dealer, while retail dealers will operate at the ward level.
The Bangladesh Agricultural Development Corporation (BADC), meanwhile, has around 5,000 wholesale and retail dealers.
Bangladesh Fertilizer Association Chairman Md Mosharraf Hossain told Dhaka Tribune that increasing the number of dealers had reduced the profit margins of existing dealers, while seasonal traders taking advantage of shortages were benefiting.
He also blamed restrictions on moving fertilizer between districts.
“Earlier, fertilizer could be transported from one district to another when necessary. But now, because of the restrictions, problems are emerging in areas where demand is higher,” he said.
As a result, fertilizer may be available in one area while farmers struggle to obtain it in another.
In Kurigram’s Roumari upazila, farmers in Bandaber Union recently broke into a dealer’s warehouse following delays in distribution and took away at least 150 sacks, according to warehouse manager Saiful Islam.
On the same day, farmers in Bhurungamari blocked a road to protest inadequate supplies. The upazila agriculture officer was reportedly confined for some time. The incident came around 15 days after another warehouse in the upazila was broken into and fertilizer taken away.
Farmers in several areas have also complained of being forced to pay more than government-fixed prices and waiting for hours without receiving the required quantity.
Stocks under pressure
The government maintains that Bangladesh has sufficient fertilizer stocks. However, Agriculture Ministry documents indicate supplies could come under pressure in the coming months, particularly DAP.
According to a BADC stock statement submitted to the ministry on Sunday, total fertilizer stocks stood at around 332,000 tons. After distributing 100,000 tons in September, stocks could fall to around 232,000 tons.
BADC had around 141,000 tons of DAP as of September 3, according to a summary prepared for the Cabinet Committee on Government Purchase. Projected demand for October is around 150,000 tons, meaning stocks could fall to approximately 41,000 tons after September distribution.
A vessel carrying 30,000 tons of DAP from Morocco has departed. If it arrives on schedule, stocks would rise to around 71,000 tons. Two additional consignments are reportedly being processed.
Officials say imported fertilizer can take 40-45 days or more to enter the distribution network, while private-sector imports typically take 80-90 days to reach farmers.
The government plans to import 500,000 tons of DAP, 200,000 tons of TSP and 250,000 tons of MOP.
Private-sector fertilizer tenders were generally initiated in April or May in previous years, with work orders issued by June. This year, the process moved into August. Importers allege that final approvals and work orders are still pending, preventing them from opening letters of credit.
Several Agriculture Ministry officials have blamed procurement delays for putting additional pressure on supplies. They also allege that similar delays occurred during the interim government’s tenure. The allegations could not be independently verified, and comments from the former officials named were not immediately available.
Agriculture Secretary Md Salim Khan said an organized group may be attempting to obstruct the new distribution system.
“The situation across the country is somewhat planned,” he told Dhaka Tribune, adding that a monitoring committee of two joint secretaries and two deputy secretaries had been formed.
“We have already removed four or five people. A group is working to disrupt the implementation of the new policy,” he said.
The government may have fertilizer in its warehouses, but stock figures alone do not solve the problem farmers face: getting fertilizer to the right place, at the right time and at the government-fixed price.