The appointment of dealers for fertilizer distribution in Bangladesh was managed under the Bangladesh Chemical Industries Corporation (BCIC) and the Bangladesh Agricultural Development Corporation (BADC) until now. Under the fertilizer dealer appointment and fertilizer distribution integrated policy 2009, the two agencies oversaw dealer recruitment across the country. Recently, the government has initiated a plan to bring this entire process under the Ministry of Agriculture. A related policy has been approved and is awaiting finalization. Alongside this, there are plans to nearly double the current number of fertilizer dealerships. Officials linked to the agriculture ministry say the move will help bring order and transparency to fertilizer distribution. However, concerns have been raised by associations representing existing fertilizer dealers, who warn that any disruption during the new dealer appointments could damage the fertilizer supply chain.
Ministry officials said that artificial shortages were created and dealer appointments were influenced politically under previous governments. To prevent irregularities and address supply disruptions, the National Coordination and Advisory Committee on Fertilizer has given the agriculture ministry full responsibility for fertilizer distribution and approved the new policy. The plan aims to ensure an uninterrupted fertilizer supply at the grassroots level through the appointment of new dealers. Nevertheless, dealers in several districts are opposing the new policy. The Bangladesh Fertilizer Association (BFA) has also launched a campaign against the new dealer appointments. Ministry sources, however, insist the decision is necessary to prevent malpractice in fertilizer distribution.
According to BCIC and BADC data, there are currently 7,150 fertilizer dealerships nationwide. Of these, 2,118 fall under BCIC and 5,022 under BADC. Each union is currently allotted one dealer.
Under the new policy, the number of existing dealers will be increased to around 13,500, though the ministry has not yet confirmed the final figure. The policy proposes appointing three dealers per union. Leaders of dealer associations say that increasing the number of dealers will dilute profits, making it difficult for current dealers to sustain their operations. They also point out that expanding infrastructure will raise costs, and if dealers cannot manage the added pressure, the fertilizer supply system could collapse.
The government has amended the “Fertilizer Dealer Appointment and Fertilizer Distribution Integrated Policy 2009” to break the network that created artificial fertilizer shortages. The revised policy has already been approved in a meeting of the National Coordination and Advisory Committee on Fertilizer. Ministry sources said that the text is currently being reviewed for minor wording or technical adjustments. Once verified, the amended policy will be officially published in the gazette. The new policy includes provisions to cancel the licenses of dealers involved in irregularities. Authority over dealership appointments, previously with BADC and BCIC, will now fall under the Ministry of Agriculture.
Agricultural economist Dr. Jahangir Alam told Bonik Barta, “The government’s initiative to increase the number of dealers is positive. However, its success depends on proper implementation. If this policy is implemented transparently, farmers are expected to benefit. More dealers will improve access for farmers. BCIC imports fertilizer, but its primary role is production, not import. Previously, BCIC produced 80 percent of our urea demand, but now that has dropped to 20 percent. If fertilizer import is needed, the Ministry of Agriculture will handle it, as it is responsible for the success or failure of agriculture. Transferring dealership authority from BCIC to the ministry is a good step.”
The new policy also prohibits multiple dealerships within a single family. A deputy secretary-level official at the agriculture ministry, speaking on condition of anonymity, told Bonik Barta, “Previously, political influence affected fertilizer dealership appointments. In rural areas, fertilizer distribution involves significant politics, and political party affiliates often benefited. Under the current interim government, there is no political involvement at the field level. The government wants to keep dealer appointments free from political influence. Those who apply and are deemed qualified by the verification committee will receive dealerships. This is why the appointments are being planned during this government’s tenure.”
Until now, BCIC dealers under the Ministry of Industries handled urea distribution, while BADC dealers managed non-urea fertilizers such as DAP, TSP, and MOP. This forced farmers to collect different types of fertilizers from separate locations. Under the new plan, both urea and non-urea fertilizers will be distributed through the same dealer, streamlining access for farmers.
Several officials in the Ministry of Agriculture say that if the new policy is implemented, fertilizer supply will become easier and more transparent. They expect irregularities and corruption to decline. They also note that having all dealer operations under a single department will simplify monitoring.
The main dealer organization is the Bangladesh Fertilizer Association (BFA). On July 24, the Ministry of Commerce dissolved the BFA committee and appointed an administrator. BFA challenged this decision in court. Md Waliur Rahman, the most recent chairman of BFA, who lost his position after the committee was dissolved, told Bonik Barta, “There was one dealer per union and one retail distributor per ward until now. Even then, various fertilizer crises occurred. Now, three dealers will be appointed per union. This will harm the dealers. There will no longer be retail distributors, which will make it even harder for farmers to access fertilizer. We want dealers to operate under the 2009 policy. We also call for action against those who engaged in irregularities. But why penalize those who run their business honestly and deliver fertilizer on time?”
He added, “There is a risk of irregularities in the new dealer appointments. There is doubt whether the government can distribute dealerships transparently. We also need to see why the government is appointing new dealers before the elections. They have dissolved the BFA committee. We have gone to court. We know how to manage fertilizer businesses ourselves. Why appoint an administrator here? We have not run away.”
Expressing a different view, AHM Saiful Islam, head of the Department of Agricultural Economics at Bangladesh Agricultural University (BAU), told Bonik Barta, “Increasing the number of dealers will increase competition. There will be no monopoly. If one dealer creates a shortage, others will have the opportunity to supply. However, maintaining the dealer appointment process correctly is somewhat difficult. If it is implemented transparently, farmers will benefit.”
This year, the country’s fertilizer demand is around 7 million tons. While the government maintains there is no shortage, complaints surfaced in several districts during the Aman season regarding insufficient supply. Farmers were able to purchase fertilizer only if they paid higher prices. Officials from the Department of Agricultural Extension (DAE) describe these shortages as “artificial.” However, multiple officials also noted that local political influence contributed to several incidents. Ministry investigations have revealed manipulations by dealers in various locations, and authorities have decided to take action against those involved in irregularities and misconduct.
Ahmed Faisal Imam, additional secretary and head of the Ministry of Agriculture’s Fertilizer Management and Supplies Division, told Bonik Barta, “There is no shortage of fertilizer in the country. However, in many areas, farmers have been forced to buy fertilizer at inflated prices. We are taking action against those involved, including through mobile courts. In some places, dealers have engaged in irregularities in fertilizer distribution. We have decided to cancel the dealerships of more than 2,000 dealers involved in such violations.”
Clarifying that political influence will not affect new dealer appointments, Secretary of Agriculture Dr. Mohammad Emdad Ullah Mian told Bonik Barta, “The policy has been approved but is not yet finalized. It may undergo minor additions, deletions, or revisions. Once it is approved in the official files, it will take effect from that point. We cannot say it is finalized yet, but we are nearing the end of the process. We are ensuring transparency in dealer appointments. Political influence will be extremely limited. To receive a dealership in any union, the applicant must be a resident there. All qualifications specified in the policy must be met. Local administration will verify and recommend candidates, and we will provide opportunities based on that. The process will be fully transparent.”
He added, “Government employees, those directly involved in politics, or those ineligible for elections (as per policy) cannot participate in this process. A single family cannot hold multiple dealerships. If multiple dealerships already exist in a family, they will be removed. Everything will be done according to the rules, which will ultimately benefit the farmers.”
On whether all dealer appointments could be completed before the elections, the agriculture secretary said, “This is an ongoing process. More than half of the appointments have already been made. Existing dealers who wish to remain will not be removed. Under the new policy, their licenses will be renewed. Those involved in irregularities will be excluded.”