Reza Mahmud :
Fertiliser crisis has emerged across the country during the Aman season which created threats of the food security, experts and stakeholders said.
Sources said, delaying of tender invitations by the Bangladesh Chemical Industries Corporation (BCIC) for importing necessary fertilizers has created the crisis.
Farmers from different districts expressed anxiety saying they are struggling to collect necessary fertilsizers.
Fertilizers dealers also said they have not sufficient amount of fertiliser in their stock to provide the farmers.
When contacted, Bangladesh Fertilizer Association Vice-Chairman Shah Jalal Hossain told The New Nation on Tuesday, “In every year, the BCIC invites tender from traders for importing fertilizers by April. But this year, the BCIC invited the tender in this August.
On the other hand, the Bangladesh Agricultural Development Corporation (BADC) also has not sufficient amount of fertilisers in their silos.”
The business leader said these things created the current crisis of fertiliser.
He, however, said, the demands of the fertilisers will be increased soon after many low-lying cultivable lands emerged from the monsoon water.
Dealers said, in particular, the triple superphosphate (TSP) fertiliser produced by BCIC is not available in required amounts.
There are also shortages of diammonium phosphate (DAP) and muriate of potash (MOP). If this fertiliser crisis is not resolved, Aman production is likely to decrease, which may affect the overall economy and food security of the country.
Even without this, due to floods, Aman production in the 2024-25 fiscal year has already been lower compared to 2023-24, which has affected the market. This has increased food inflation. Around 51 percent of food inflation is driven by rice. In such a situation, if fertiliser scarcity arises, Aman production will naturally decline further. To normalise the situation, increased imports would then be necessary, putting pressure on the dollar and on foreign reserves.
In other words, if the fertiliser shortage persists, its impact will be felt not only on food but also on the entire economy.
According to media reports, farmers allege that traders and dealers have created an artificial fertiliser shortage.
Due to this artificial crisis, fertiliser prices have risen by Tk 5-6 per kg. In some places, fertiliser is being sold at Tk 100-150 more per sack. However, denying the allegations of overpricing, dealers claim that the fertiliser allocated to them is far less than actual demand. As demand is higher during the Aman season, the shortage has intensified.
The country’s annual fertiliser demand is 6 million tonnes, of which, urea is 2.7 million tonnes (relatively stable) and non-urea fertilisers-TSP, DAP, and MOP-face the most shortages. Currently, government stock stands at 0.819 million tonnes (compared to 1.1 million tonnes last year).
As per the government’s fixed price, urea and TSP fertiliser should be sold at Tk 27 per kg at the farmer level, MOP at Tk 20, and DAP at Tk 21 per kg. On the other hand, depending on soil fertility, soil type, and crop variety, per acre farmland may require 130-140 kg of urea, 50-60 kg of TSP, and 40-50 kg of MOP.
The causes of the fertiliser crisis include delays and lack of transparency in imports, higher purchase prices, the influence of middlemen, policy complications, and non-competitive import approvals. Syndicate-driven market control and manipulation by politically backed dealer networks also play a role. The agriculture ministry, however, claims there is no fertiliser shortage in the country. Yet, while the government-fixed price of a 50 kg sack of DAP fertiliser is Tk 1,050, it is being sold in the market at Tk 1,400-1,700. The government insists there will be no problem until November, but in reality, local-level shortages and inflated prices prove that market manipulation is occurring.
November to March is the fertiliser peak season. If the crisis is not resolved within this period, agricultural production costs will increase, and the prices of paddy and other food grains will rise. This will harm both farmers and consumers. Therefore, to address the fertiliser shortage, transparent imports through international price competition, removing political influence from dealership distribution, ensuring oversight by an independent regulatory authority, and opening the sector to free competition with private participation are essential.
