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The government has approved a new fertiliser distribution and dealer appointment policy aiming to dismantle fertiliser dealer syndicates and reach farmers with fertilisers at government-fixed prices to boost agricultural production.

- Fertiliser distribution to become under one umbrella
- New step to come into effect in January
- Farmers to get all types of fertilisers at a single shop
- No retail-level sub-dealers to be allowed
- Three dealers in each union, security deposit to double

The policy titled ‘Integrated Policy on Fertiliser Dealership and Distribution 2025’ got the final approval on Tuesday at a meeting of the National Coordination and Advisory Committee on Fertiliser Issues with agriculture adviser retired Lieutenant General Md Jahangir Alam Chowdhury in the chair.

The agriculture ministry formulated the new policy, which will replace the relevant policy of 2009 and will come into effect on January 1, 2026.

The policy will also bring fertiliser distribution and management under a single umbrella as there will no longer be separate dealers for the Bangladesh Chemical Industries Corporation or the Bangladesh Agricultural Development Corporation.

Under the policy, all dealers will be recognised as government fertiliser dealers where farmers will be able to get fertilisers directly from government’s dealers at fixed prices, reducing manipulation and the influence of middlemen.

It is also expected to prevent corruption and high prices in distribution of the government subsidised fertilisers to farmers.

Currently, there are about 5,600 dealers under the Bangladesh Chemical Industries Corporation and 5,200 dealers under Bangladesh Agricultural Development Corporation nationwide.

Allegations of irregularities are rife that multiple members of a same family hold dealership licences.

Due to the syndicatation in the distribution of the essential agricultural inputs, farmers have to buy fertilisers at high prices from the retail shops that ultimately  negatively impact the production.

Contacted, agriculture ministry joint secretary Md Khorshed Alam told ¶¶Òõ¾«Æ· on Thursday that the policy was made farmer-friendly to reach the fertilisers to farmers at the government-fixed prices -- breaking the existing dealer syndicates.

‘Despite the availability of sufficient fertilisers in the country, high prices are charged for the inputs due to collusion between retailers and dealers, preventing farmers from buying them at government-fixed rates,’ he said.

He asserted that there would be no scope for such malpractice under the new policy.

‘Farmers can buy all types of fertiliser at one shop, while no one except government-appointed dealers will be allowed to sell the inputs,’ he said.

‘We are bringing the entire system under one integrated policy, where dealers will be directly accountable to us and the farmers will get fertilisers at the fixed dealer rate, ensuring transparency,’ he added.

According to the policy, now the Bangladesh Chemical Industries Corporation appointed 5,600 dealers to sell both urea and non-urea fertilisers, while the Bangladesh Agricultural Development Corporation has 5,200 dealers selling only non-urea fertilisers.

But under the new policy, all dealers will come directly under the agriculture ministry and will be allowed to sell all types of fertiliser, eliminating separate agency-based dealership structures.

According to the new system, each union will have three government-registered fertiliser dealers, with one designated sales centre in each of the nine wards in a union.

Sub-dealers currently selling fertilisers at the retail level will no longer be allowed to operate once new dealerships are appointed.

The new policy also stipulates that each dealer must operate three sales centres, including one main warehouse and two additional outlets in convenient ward locations.

Dealers must display fertiliser names, prices, and subsidy amounts of the government on signboards at every outlet, as per the rules.

Applications for dealer licences will be processed online, with strict eligibility rules — no government officials, elected representatives, convicted criminals, or multiple members of the same family can hold licences.

Applications for new dealerships will be invited nationwide, and the applicants must apply through the Upazila Agriculture Office, after which the District Fertiliser and Seed Monitoring Committee will screen and forward eligible names to the ministry for final approval.

Dealer licences must be renewed annually between July 1 and July 31 on a fee of Tk 1,000. A late renewal until August 16 will cost Tk 1,500.

The security deposit requirement has been raised from Tk 2,00,000 to Tk 4,00,000 under the new policy, while the BCIC and BADC dealership divisions will be

abolished, bringing all fertiliser distribution under a single umbrella.

Welcoming the new policy, agricultural economist Jahangir Alam Khan said, ‘It is a good initiative, but it remains to be seen how well it works.’

The same dealer, he said, will have all types of fertiliser, and there will be dealers in every ward, so farmers will easily get fertilisers. ‘If the government can do this honestly, it will be good,’ he added

‘Prices increase when fertilisers distributed to farmers change many hands and if this can be stopped through the new policy it will benefit the farmers,’ he added.

Dealers, however, have expressed concern that while their costs will rise due to increased deposits and the requirement to run multiple outlets, the government has not raised their commission rate, keeping Tk 2 per kilogram of fertiliser sold.

Fertiliser association representatives warned that this situation could create instability in fertiliser sales across the country.

‘Dealers will have to operate three shops and a warehouse and the cost will be increased, but the government kept the same Tk 2 commission per kg of fertiliser. This could create unrest in fertiliser sales,’ said a fertiliser dealer.

Ministry officials said that the reforms must be implemented under the interim government, arguing that future political governments would avoid such politically sensitive measures.

But stakeholders warn that pushing through the policy during the peak Boro season — the backbone of national food security — could put fertiliser supply stability at risk.

Representatives of the Bangladesh Fertiliser Association at Tuesday’s meeting, however, raised concerns over higher costs for dealers against no increase in the commission for dealers.

The committee members agreed to send a proposal to the finance ministry to seek a raise in commissions. It is estimated that doubling dealer commissions would cost the government an additional Tk 1,160 crore annually.

Bangladesh first introduced dealership appointment under the BCIC in 1995 with 5,000 dealers, and 800 more dealers were appointed between 1996 and 2000.

In 2007–08, the Bangladesh Agricultural Development Corporation appointed 5,200 dealers. Since then, fertiliser distribution has largely remained in the hands of these same groups, despite widespread complaints of irregularities.