Economy
Farmers suffer as dealers charging higher fertilizer prices
Abdul Jalil, a farmer in Jamalpur, started looking for Muriate of Potash (MoP) fertiliser last week, but he found none in the nearby shops. When he managed to find it, the seller charged him Tk1,500 for a 50kg sack, which is actually priced at Tk750.
Farmers across the country said they have already been confronting a crisis of urea fertiliser, and the scarcity of MoP has worsened the situation.
Farmers in various districts, including Rangpur, Bogura, Dinajpur, Rajshahi, Jamalpur, Barishal, and Barguna, said the government recently fixed the price of a 50kg bag of urea at Tk1,100, but the sellers are charging them Tk1,300-1,400.
Sources at the agriculture ministry said there is no shortage of fertilisers in the country, but unscrupulous dealers have created an artificial scarcity to manipulate prices.
The dealers currently get Tk100 commission from a 50kg sack, and they have been demanding that it be increased to Tk200, citing the recent increase in the cost of living caused by the fuel price hike.
Mobile courts fined 383 dealers across the country Tk57 lakh on 30 August for irregularities in their operation. The highest number of dealers were fined in Jashore. The process of cancelling the licences of two dealers in Bogura and Rangpur is also going on.
Currently, there are over 5,500 fertiliser dealers across the country.
According to the agriculture ministry, the fertiliser shortage is most severe in Jamalpur, where Jamuna Fertiliser Company Ltd is located. The factory has not been in operation for over three months due to a shortage of gas. There are 257 dealers in the district, who buy fertilisers from Jamuna Fertiliser.
The dealers in Barguna and Barishal were also told to collect fertiliser from Chattogram, but they did not do it, causing a crisis.
Earlier, three factories were closed down due to a lack of gas, but now all the factories, except Jamuna, are operational, according to Bangladesh Chemical Industries Corporation (BCIC) officials.
Kazi Mohammad Saiful Islam, joint secretary and director (commercial) of BCIC, told, “There is no shortage of urea. Fertiliser is also being imported. We are providing fertiliser on demand everywhere.”
According to the sources at the agriculture ministry, BCIC and Bangladesh Fertiliser Association, there are many dealers who are not collecting fertiliser even after depositing money. Wherever the authorities concerned are aware of a crisis, they are resolving it through the intervention of the deputy commissioners. But the crisis has spread across the country in such a way that it cannot be alleviated easily.
Balai Krishna Hazra, additional secretary of the Agriculture Ministry’s Fertiliser Management and Materials Wing, told , “We have no shortage of fertilisers. Dealers who are causing trouble are being brought under the law. The licences of some of the dealers are also being cancelled.”
A senior official of the Ministry of Agriculture said on condition of anonymity that a vested quarter is trying to create instability by creating a fertiliser crisis ahead of the election.
Last Wednesday, the secretary of the Ministry of Agriculture held a meeting with deputy commissioners across the country to remedy the fertiliser crisis.
At the meeting, Agriculture Secretary Md Sayedul Islam gave instructions to field-level officials to prevent fertiliser price manipulation, artificial scarcity, and the sale of fertiliser without receipts.
He also instructed the officials to display a price list, ensure the supply of fertilisers to retailers, and visit the dealers’ warehouses to confirm the arrival of fertilisers.
The agriculture secretary further asked the officials concerned to operate mobile courts to prevent irregularities. Besides, instructions were given to the BCIC chairman to allow the delivery of fertilisers from the BCIC immediately after the agriculture ministry allocates it.
According to the Ministry of Agriculture, currently, there are 6.41 lakh tonnes of urea in stock against a demand of 3.5 lakh tonnes for the months of September and October.
There are also 4.15 lakh tonnes of TSP fertiliser against a demand of 96,000 tonnes, 9.04 lakh tonnes of DAP fertiliser against a demand of 2.19 lakh tonnes, and 2.46 lakh tonnes of MoP fertiliser against a demand of 1.21 lakh tonnes.
President of Bangladesh Fertiliser Association (BFA) Kamrul Ashraf Khan Poton told, “It is true that there have been some problems all over the country. We are also trying to normalise the situation with the government. Alongside the government, we are also monitoring the situation across the country.”
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association (DBA) have expressed gratitude towards Prime Minister Sheikh Hasina for her directive to list government companies in the capital market, a move hailed as timely and positive.
The directive was issued during the recent meeting of the Executive Committee of the National Economic Council (Ecnec) last Thursday.
Dr. Hafiz Muhammad Hasan Babu, Chairman of DSE, described the directive as a significant step towards enhancing the dynamics of the capital market. He emphasized that besides invigorating the capital market, this move would also attract foreign investment and promote sustainable development.
Despite previous efforts, government institutions had not been listed in the stock exchange, according to a notification issued by the DSE. The Prime Minister’s directive is seen as a pivotal step towards revitalizing and expanding the economy.
Dr. Babu further remarked, “The listing of reputable companies in the capital market, as directed by the Prime Minister, will greatly benefit the country’s economy. It will also enhance investor confidence.”
Similarly, the DBA released a notification applauding the Prime Minister’s directive, terming it as positive and timely for the capital market.
Saiful Islam, President of DBA, expressed optimism about the directive’s potential to accelerate the country’s capital market and overall economy. He pledged support to relevant government departments and regulatory bodies in implementing the directive, ensuring its positive impact on the economy, including the capital market.
India has expressed interest in financing Bangladesh’s Teesta project, announced Foreign Minister Hasan Mahmud. Speaking to reporters after a meeting with Indian Foreign Secretary Vinay Mohan Kwatra, Mahmud stressed the importance of aligning the project with Bangladesh’s needs. He confirmed discussions on the Teesta issue during the meeting. Mahmud also affirmed Prime Minister Sheikh Hasina’s upcoming visit to New Delhi, indicating that the finalization of the date would depend on the formation of the new Indian government following ongoing elections.
Meanwhile, the IMF has approved a $1.15 billion staff-level loan for Bangladesh in its third tranche. Mahmud noted the ongoing elections in India and the subsequent formation of the new government as factors influencing the scheduling of PM Hasina’s visit.
When asked about the sequence of visits to India and China, Mahmud suggested Delhi’s geographical proximity to Bangladesh. Diplomatic sources suggest PM Hasina’s visit to India is planned for early July, following India’s elections.
Pre-election surveys indicate strong prospects for Indian Prime Minister Narendra Modi’s re-election. Modi previously congratulated PM Hasina on her electoral victory in January, expressing optimism about strengthening ties between the two nations.
The last bilateral engagement between the prime ministers occurred during the G-20 Leaders Summit in September 2023. Modi is expected to invite South Asian and BIMSTEC leaders to his swearing-in ceremony, fostering regional cooperation.
Addressing border killings, Mahmud emphasized the government’s commitment to ending such incidents and promoting the use of non-lethal weapons by border forces. Discussions also covered enhancing physical and people-to-people connectivity, including cooperation with India to import hydropower from Nepal and Bhutan through India. Mahmud highlighted the need to further ease visa restrictions to strengthen people-to-people relations.
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