Govt to blacklist irregular fertiliser dealers
Staff Reporter :
The government plans to cancel licences and blacklist fertiliser dealers accused of irregularities such as open-market sales, hoarding, and creating artificial shortages, after a review found that nearly a quarter of all dealers were involved in such misconduct. A unified policy for new dealer appointments is now being finalised.
The decision came at a meeting of the National Coordination and Advisory Committee on Fertiliser on 30 September, chaired by Industry Adviser Adilur Rahman Khan. The meeting reviewed irregularities in distribution, assessed upcoming demand, and discussed a new integrated policy for appointing dealers.
According to official data, 2,665 out of 10,814 dealers appointed by the previous government engaged in irregularities-around 24.66% of the total.
Sources said, currently, fertilisers are distributed through two agencies-the Bangladesh Chemical Industries Corporation (BCIC) and the Bangladesh Agricultural Development Corporation (BADC)-which manage over 10,000 dealers. BCIC follows the 2009 Fertiliser Dealer Appointment and Distribution Policy, while BADC selects dealers from its seed distributors.
The government is now merging these systems under a single framework titled Integrated Policy for Fertiliser Dealer Appointment and Distribution 2025, already approved in principle by the Advisory Council Committee. A committee led by Additional Secretary (Fertiliser Management and Inputs) Ahmed Faisal Imam is finalising the draft.
“The policy has been approved and is undergoing linguistic refinement. It will be issued soon, and dealer appointments will follow accordingly,” Imam said. Dealers not involved in irregularities will retain licences but must submit a Tk5 lakh security deposit-up from Tk4 lakh for BCIC dealers and Tk1 lakh for BADC dealers.
BADC Chairman Md Ruhul Amin Khan confirmed that both agencies will follow a unified system once the policy takes effect.
The committee’s working paper revealed that 147 dealers were appointed in violation of policy and found guilty of irregularities, while 2,161 were appointed breaching policy guidelines. Nine lawfully appointed dealers repeatedly committed offences, and 348 others did so at least once. In contrast, 8,149 dealers were rule-compliant.
Officials said some dealers withdrew fertiliser from government godowns without distributing it to farmers, sold it in open markets, or hoarded stocks to inflate prices. Others traded under the names of deceased dealers or conducted unauthorised cross-district sales.
A senior official said the blacklisting and cancellation process will be completed before the next Boro season, ensuring time to appoint new dealers under the unified policy.
The committee also discussed revising dealer commissions, unchanged since 2008. Fertiliser prices were calculated with a Tk2 per kg commission, though transport and labour costs have since increased. Agriculture Secretary Imdad Ullah Mian termed the rate “unrealistic.”
Adviser Adilur Rahman Khan agreed the commission may be adjusted but said retail prices for farmers must remain unchanged. Imam noted that raising the commission by Tk2 per kg would cost the government Tk1,160 crore, and the Finance Division will review the proposal.
For FY2025-26, national fertiliser demand is estimated at 58 lakh tonnes, including 26 lakh tonnes of urea, 7.5 lakh of TSP, 14.85 lakh of DAP, and 9.5 lakh of MOP. If private importers fail to meet quotas, BADC will import the shortfall; if BADC or BCIC cannot meet targets, private importers will be allowed to fill the gap. The national fertiliser safety stock will be reduced from 12 lakh to 11 lakh tonnes.
Additionally, transporters carrying fertiliser from government godowns must register, and dealers must collect fertiliser personally or through certified company employees to ensure accountability and prevent misuse.