Fertiliser shortage drives up prices for farmers in peak season
With heavy reliance on irrigation, the Boro rice season begins in November-December with seedbed preparation, followed by planting in January-February and harvesting in April-May
Farmers are feeling the pinch as fertiliser prices climb amid shortages, just as the Boro season kicks off – a critical period that reaps over 2 crore tonnes of rice, ensuring food security for the year.
With heavy reliance on irrigation, the Boro rice season begins in November-December with seedbed preparation, followed by planting in January-February and harvesting in April-May.
TBS correspondents in Lakshmipur, Naogaon, Bagura, Gaibandha, Khulna, and Rajshahi report that farmers are now paying an extra Tk2-11 per kg for both urea and non-urea fertilisers.
Fertiliser dealers told TBS that price increases are typical at the start of the Boro season due to rising demand, but this year, stock levels are low. However, agricultural officials said "there is no actual shortage" and suggested that some dealers are inflating prices through hoarding and syndication.
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According to the Department of Agricultural Extension, alongside rice, the seasonal production of onion, potato, mustard, wheat and large-scale vegetables ensures year-round supply. So, December-March is considered the peak season for crop and vegetable production.
Agriculture Secretary Mohammad Emdad Ullah Mian told TBS that they have received complaints of overpricing and strict actions are being taken with the help of the local administration. However, managing this issue at the retail level is challenging.
He added that while there is no actual fertiliser shortage, delays in supply may cause unnecessary panic. If any overpricing is reported, immediate action will be taken against the perpetrators.
However, the secretary's claim of "no shortage" contradicts the data, which clearly indicates a shortage.
Current stock of urea and non-urea fertilisers
The Bangladesh Agricultural Development Corporation (BADC), under the Ministry of Agriculture, is the primary supplier of non-urea fertilisers – TSP, DAP, and MOP. Additionally, private importers contribute to the supply of non-urea fertilisers.
An analysis of the available data of non-urea fertilisers, provided by the Ministry of Agriculture (as of 10 December), shows that the demand for non-urea fertilisers from December to March is 3.61 lakh tonnes for TSP, 7.44 lakh tonnes for DAP, and 4.13 lakh tonnes for MOP.
However, the total stock available in BADC warehouses and in transit includes only 1.02 lakh tonnes of TSP, 1.39 lakh tonnes of DAP, and 2.29 lakh tonnes of MOP.
Private importers will supply part of the demand, especially, 25.68% of the TSP demand, 30.43% of the DAP demand, and 18.37% of the MOP demand.
While the BADC remains the largest supplier, it has been unable to build up enough stock to fully meet the demand.
A senior BADC official, on condition of anonymity, told TBS that the import pipeline does not have enough to meet the entire peak season demand.
The Bangladesh Chemical Industries Corporation (BCIC), under the Ministry of Industries, supplies urea both through local production and imports. However, a shortage of urea fertiliser has been ongoing since the beginning of this fiscal year due to a dollar crisis and political upheaval.
The annual urea demand is 32 lakh tonnes, with 27 lakh tonnes being usable, while 5 lakh tonnes are kept as safety reserves. Of this, the demand for urea between December and March alone is 14.5 lakh tonnes, with demand for December exceeding 3.15 lakh tonnes, according to BCIC data.
The BCIC has 7.25 lakh tonnes of urea in stock, which includes the 5 lakh tonnes of reserve and the 1.5 lakh tonnes to be imported for December. In January, 2.1 lakh tonnes will be imported, 1.5 lakh tonnes in February, and 30,000 tonnes in March.
Stakeholders said any delays in fertiliser imports could worsen the crisis.
Why the crisis?
The struggle for urea fertiliser began at the start of the fiscal year as imports have been hindered by various factors, including the political and dollar crises.
Additionally, most of the country's five urea factories were shut down due to a gas crisis, leading the BCIC to provide less fertiliser than required in July, August, and November.
BCIC Chairman Md Saidur Rahman told TBS, "Fertiliser imports have now resumed fully since the dollar crisis eased slightly, and future consignments will arrive on time."
From July to the first week of December, 5.15 lakh tonnes of urea fertiliser were imported, and 5.4 lakh tonnes were produced locally, he said.
Former agriculture secretary Anwar Farooq told TBS that there is enough fertiliser for December. However, if imported fertiliser does not arrive on time, there could be a crisis in January and February, which would negatively impact production. The government must focus on quickly building fertiliser reserves.
What do farmers and dealers say?
The government provides subsidies for urea and non-urea fertilisers and has set their prices but there have been reports of fertilisers being sold at higher rates across the country.
Some dealers and sellers have been brought under the law for these price violations. On 29 November, a mobile court in Boda upazila, Panchagarh sentenced a middleman to six months in prison and fined a dealer Tk2 lakh for illegally hoarding and selling fertilisers at inflated prices.
Anwar Hossain, a dealer and manager at Akhter Traders in Chawkbazar, Cumilla city, said all fertilisers except TSP are in good supply. However, TSP is being sold at Tk29 per kg instead of the fixed price of Tk27 due to high transportation costs.
Md Abdul Majed, a sub-dealer in Bashikpur Bazar, Lakshmipur sadar upazila, said fertiliser prices tend to rise suddenly during the start of Boro season due to supply crises. "I have to pay dealers an additional Tk150-200 per bag of urea and non-urea fertilisers, which leads to higher retail prices for farmers," he said.
Abul Barakat, a vegetable farmer from Char Mansa village in Lakshmipur sadar upazila, said he purchased urea this week for Tk35 per kg and DAP for Tk40. Some vendors are also selling DAP and TSP at Tk50 per kg.
Farmers claimed dealers are selling fertilisers to retailers at inflated prices instead of directly to farmers, forcing them to buy at higher retail prices.
Lakshmipur retailer Majed, however, said dealers are not providing enough fertiliser in the market due to a shortage.
When asked, Lakshmipur Department of Agricultural Extension Deputy Director Shamsuddin Firoz said, "There is no shortage of fertiliser. We will take appropriate action if we receive any complaints regarding the sale of fertiliser at inflated prices."
