SUKANTA HALDER

In order 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.”