Bangladesh’s fertiliser dealers have demanded that their sales commission be doubled to 200 taka per bag and given the government 48 hours to halt appointments under a new dealership policy they say could disrupt the distribution system.
The Bangladesh Fertilizer Association (BFA) issued the ultimatum at a press conference in Dhaka on Monday, escalating a dispute with the Agriculture Ministry over the Integrated Policy on Fertiliser Dealer Appointment and Fertiliser Distribution-2026.
BFA Chairman Md Mosharraf Hossain said dealers had been seeking a meaningful commission increase for 18 years as fuel, transport and other operating costs rose.
In 2008, transport costs and sales commission together stood at 100 taka per bag, leaving dealers with around 25-30 taka after expenses, he said.
Dealers are now losing around 50-55 taka on each bag, Mosharraf claimed.
The government has announced a 50 taka increase per bag, but the new rate will not take effect until July 1, 2027. Mosharraf said that increase would only allow dealers to break even.
The BFA is therefore seeking another 100 taka increase, taking the commission to 200 taka per bag.
“Dealers will gradually lose interest in this business if the commission is not increased,” Mosharraf said.
The dispute also centres on the government’s new dealer appointment system.
The Agriculture Ministry issued the policy on Aug. 27, followed by a circular on appointments for what it described as urgent state requirements.
The BFA argues that provisions in the policy and appointment circular are unclear and could lead to “confusion, discrimination, administrative complications and unwanted instability” in fertiliser distribution.
The association filed a writ petition on Sept. 2. Mosharraf said the court subsequently issued a 60-day rule concerning the disputed provisions.
District fertiliser and seed monitoring committees have nevertheless continued dealer appointment procedures, while the ministry has not held discussions with the association to clarify the contested provisions, he said.
The BFA demanded that the process be suspended within 48 hours.
Mosharraf also referred to allegations circulating on social media that political considerations were influencing dealer appointments. The association presented no evidence at the press conference to substantiate the claims.
The BFA said around 5,600 dealers were appointed by the Bangladesh Chemical Industries Corporation in 1995 after providing security deposits of 200,000 taka each. A further 5,200 dealers were brought into fertiliser distribution through the Bangladesh Agricultural Development Corporation in 2009.
Mosharraf also criticised the 2026 policy for excluding BFA representatives from fertiliser-related consultations and committees at the upazila, district and national levels, where the association had previously participated.
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