Govt unifies fertiliser distribution with new dealer policy

• Government launches unified fertiliser dealer policy
• Dealers mandated retail centres, sub-dealers scrapped
• Industry warns rising costs threaten sustainability
• Policy aims curb black marketing, boost access

To improve fertiliser distribution and ensure farmers receive timely access, the interim government has introduced the Integrated Fertiliser Dealer Appointment and Distribution Policy-2025, effective since November 16.

The move comes after farmers repeatedly complained about paying higher than government-set rates for fertilisers, which are crucial for rice cultivation, particularly during the Boro season.

Bangladesh used over 50 lakh tonnes of chemical fertiliser in the 2024-25 fiscal year, according to official data.

Under the new policy, all dealers will be considered government-appointed, with no distinction between Bangladesh Chemical Industries Corporation (BCIC) dealers and Bangladesh Agricultural Development Corporation (BADC) dealers.

DEALER UNITS AND RETAIL CENTRES

The policy specifies that in unions and municipalities, one dealer unit will be formed for every three wards, with a maximum of three dealers per union or municipality—one per unit.

Existing BCIC and BADC dealers will have their responsibilities redistributed, and vacant units will be filled by new appointments.

In city corporation areas, dealers may be appointed if there is significant cultivable land, with the number of dealers based on land area and crop density, following recommendations from the Department of Agricultural Extension (DAE) and approval from the Central Management Committee on Fertiliser Dealers.

Each union-level dealer must establish one retail sales centre in each of their three designated wards. Municipal dealers will establish up to three retail centres, and city corporation dealers will establish the required number of centres at convenient locations, as approved by relevant authorities.

The policy also eliminates sub-dealers and retail sellers. Existing sub-dealers may continue operations under the old rules until 31 March 2026, after which fertiliser sales will only be through designated sales centres.

Within 15 days of the gazette, upazila or district Fertiliser and Seed Monitoring Committees will determine dealer units and operational areas, assigning responsibilities accordingly. The policy also prohibits multiple family members from holding fertiliser dealerships.

INDUSTRY CONCERNS

Riaz Uddin Ahmed, executive secretary of the Bangladesh Fertilizer Association, expressed concerns about the policy's sustainability.

"Currently, dealers receive Tk 2 per kg as commission, which also covers carrying costs. This rate was set in 2008," he said. "Since then, costs for transport and other expenses have risen above Tk 4 per kg."

He added, "Under the new policy, a union dealer will need to establish two more storage centres, further increasing costs. Without addressing this, the policy may not be sustainable."

Ahmed also warned that merely increasing the number of dealers per union will not control prices. "Prices will rise unless supply at the district level is increased," he said.

Khorshed Alam, joint secretary of the fertiliser management and monitoring branch at the Ministry of Agriculture, said, "Under the new policy, all fertiliser dealers are brought under one umbrella. The same dealer will now handle both urea and non-urea fertilisers."

He added, "Previously, there was an unwritten competition between BCIC and BADC dealers, which caused management problems. Dealer units were also not clearly defined. If this policy is implemented, it will be a revolutionary development for Bangladesh."

The policy's main goals, he said, are to deliver fertiliser directly to farmers' doorsteps and prevent black marketing or price manipulation.

Mohammad Emdad Ullah Mian, secretary at the Ministry of Agriculture, said the government aims to create a farmer-friendly fertiliser management system. "A syndicate often manipulates distribution for their benefit. Almost 65 percent of the Ministry's budget is spent on fertiliser. If the government spends so much money, people should benefit properly," he said.

He added that the government has identified around 2,000 problematic dealers and aims to allocate fertiliser based on land size, potentially saving Tk 3,000 to Tk 4,000 crore annually.

Jahangir Alam Khan, a renowned agricultural economist, said, "Bringing the overall supervision of fertiliser dealer appointments and distribution under the Ministry of Agriculture is a significant and timely step.

"While the policy framework is timely, the government must ensure consistent availability of fertiliser to truly benefit farmers and boost agricultural productivity."