Aman Crop Output: Farmers left vulnerable as fertiliser supply falters

Staff Reporter :

Farmers across Bangladesh are increasingly anxious about potential disruptions in the fertiliser supply chain ahead of the critical Aman paddy cultivation season, citing inaction from key government agencies and widespread allegations of corruption.

Despite government assurances, stakeholders say the distribution network remains vulnerable to mismanagement, depriving farmers of fertiliser at fair prices while enabling dishonest traders to reap excessive profits. The issue is particularly acute with urea fertiliser, a vital input for paddy cultivation.

Experts and farmers have called for transparency and accountability from government bodies, including the Bangladesh Chemical Industries Corporation (BCIC), the Bangladesh Shipping Corporation, and associated contractors. They warn that unless systemic flaws in the procurement and distribution processes are addressed, agricultural productivity could suffer significantly.

Several reports highlight deep-rooted corruption within the fertiliser import and distribution system.

Summit Associate, one of the companies involved in BCIC’s fertiliser operations, faces serious allegations of malpractice. According to sources, the firm smuggled 15 truckloads of fertiliser from the Tejgaon buffer stock, violating contract terms by subcontracting transportation without approval.

These subcontractors reportedly diverted fertiliser to unauthorised locations.
Interocean, another contractor, is accused of manipulating warehouse allocations in exchange for bribes and offloading subsidised fertiliser into the open market.

Although official records suggest the company holds 22,993.65 metric tons in stock, actual figures are believed to be far lower. While some BCIC officials are reportedly aware of these irregularities, many have remained silent.

Currently, four companies manage BCIC’s fertiliser operations: Bangla Traders Ltd., Taiba Saifullah GL, Summit Associate, and Interocean. Of these, only Bangla Traders and Taiba Saifullah GL have fulfilled their delivery obligations on schedule.

In response to mounting concerns, the interim government has initiated steps to import urea fertiliser through international tenders, particularly from Middle Eastern countries such as Saudi Arabia, the UAE, and Qatar under Government-to-Government (G2G) agreements. However, past delays and irregularities during the recent Boro season have raised scepticism about the effectiveness of these efforts.

BCIC recently floated a tender to import 30,000 metric tons of urea. Normally, the all-inclusive cost per metric ton – covering logistics, transport, and profit margin-hovers around $50-52. However, current bids have come in $6-8 lower, prompting experts to warn of a potential “price war” that may compromise quality, safety, and timely delivery.

Though superficially cost-effective, these lower bids have raised concerns over possible undercutting driven by corruption or inefficiency. There are also fears that the artificially depressed prices could result in smuggling and further destabilise the fertiliser market.

Experts stress that addressing fertiliser supply chain issues is essential for ensuring food security. “Without transparency in fertiliser imports and strict oversight of distribution, both agricultural output and the livelihoods of farmers are at risk,” one agricultural economist said.

One notable incident reported by Novo Transport involves the theft of 7,140 bags of fertiliser. “We have recovered 3,015 bags so far and lodged a police complaint to retrieve the rest,” said Sarwar Hossain Sourav, the company’s owner.

BCIC Deputy General Manager Saiful Alam declined to comment, while BCIC Chairman Md. Nuruzzaman stated: “I’m not aware of the matter. I will look into it. If someone is found guilty, they will be punished.”

In a separate incident, 47 metric tons of fertiliser were reportedly lost from the MV Seven Gas-4 vessel due to a leak. While the actual market value is around Tk 1.3 million, the shipping agent, MM Shipping, claimed Tk 12 million in damages-raising further concerns of inflated compensation claims. Summit Associate reportedly owes BCIC over 20,000 metric tons of fertiliser across three separate shipments.

Unless corrective measures are swiftly implemented to address corruption, mismanagement, and opaque procurement practices, farmers may once again be left vulnerable. The repercussions could be severe – not only for agricultural yields but also for the nation’s broader food security and economic stability.