Govt hikes fertiliser dealer commission

The government has raised the commission paid to dealers on urea, triple superphosphate (TSP), diammonium phosphate (DAP) and muriate of potash (MOP) by Tk 1 to Tk 3 per kilogramme, while keeping the prices paid by farmers unchanged.

The Finance Division issued the order following a letter from the Ministry of Agriculture dated September 14. The revised dealer-level prices will take effect from July 1, 2027.

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The move comes amid concerns over alleged hoarding and supply control by some dealers and retailers to create an artificial shortage of fertiliser and drive up prices, according to a Special Branch report.

Shahnaz Akhter, agriculture economist for fertiliser management and monitoring at the Ministry of Agriculture, said dealers previously received a commission of Tk 2 per kg, which has now been raised to Tk 3.

Dealers had long been demanding the increase, citing rising loading and unloading costs. Their commission had not been revised since 2009, Shahnaz said.

Under the revised rates, the dealer-level price of urea has been reduced from Tk 25 to Tk 24 per kg, while the farmer-level price remains Tk 27.

The dealer-level price of DAP has been cut from Tk 19 to Tk 18 per kg, with farmers continuing to pay Tk 21. The price of TSP for dealers has been reduced from Tk 25 to Tk 24, while the farmer-level price remains Tk 27. For MOP, the dealer-level price has fallen from Tk 18 to Tk 17, with farmers continuing to pay Tk 20.

Meanwhile, a Special Branch report alleged that collusion among dealers and retailers to create an artificial shortage through hoarding and supply control was causing discontent among farmers.

The report was sent to the Ministry of Home Affairs on September 8 with 15 recommendations to address the problems identified.

The recommendations include ensuring a transparent and competitive process free from political and local influence in appointing dealers, selecting dealers through a digital lottery based on merit, monitoring dealers’ fertiliser stocks and distribution online, and taking swift legal action, including cancellation of dealerships, when irregularities are found.