Govt raises fertiliser dealer commission

The finance ministry has raised the dealer-level commission on urea, triple superphosphate (TSP), diammonium phosphate (DAP), and muriate of potash (MOP), while keeping the price paid by farmers unchanged.

The order, issued by the Finance Division, follows a letter from the Ministry of Agriculture dated September 14, and the enhanced commission based on the newly fixed dealer-level prices will take effect from July 1, 2027.

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Shahnaz Akhter, agriculture economist for fertiliser management and monitoring at the Ministry of Agriculture, said previously, dealers earned a commission of Tk 2 per kilogramme on fertiliser sales; this has now been raised to Tk 3.

Dealers had long been demanding this increase, citing rising loading and unloading costs as their primary justification. Dealer commission has not been increased since 2009, Shahnaz added.

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 unchanged at Tk 27 per kg.

Similarly, the dealer-level price of DAP has been lowered from Tk 19 to Tk 18 per kg, with the farmer-level price staying at Tk 21 per kg.

For TSP, the dealer-level price has been cut from Tk 25 to Tk 24 per kg, keeping the farmer-level price steady at Tk 27 per kg.

For MOP, the dealer-level price has come down from Tk 18 to Tk 17 per kg, with farmers continuing to pay Tk 20 per kg.

However, a report prepared by the Special Branch of the police claimed that alleged collusion among dealers and retailers to hike fertiliser prices by “creating an artificial shortage” through hoarding and supply control is causing discontent among farmers.

The report was sent to the Home Ministry on September 8 for further action, along with 15 recommendations aimed at addressing the issues identified.

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