Fertiliser dealers across Bangladesh want the government to double their sales commission from Tk 100 to Tk 200 per sack. They are also demanding an immediate freeze on appointing new distributors.
Operating costs, freight rates, and fuel prices currently force dealers to lose Tk 50 to Tk 55 on every sack they sell.
Speaking at a Dhaka press conference on Monday, Bangladesh Fertilizer Association chairman Md Mosharraf Hossain said distributors have sought an updated fee structure for 18 years. Allowances stayed flat while retail overheads surged across rural areas.
Rising Freight and Margin Squeeze
In 2008, the government set a transport and sales commission of Tk 100 per sack. Dealers netted Tk 25 to Tk 30 after paying for freight, loading, and handling.
Heavy transport inflation has wiped out those margins. Distributors now cover shipment shortfalls with their own working capital.
Last-mile stockists bear the brunt of the losses. To survive, rural dealers cut inventory, delay bulk purchases, and reduce deliveries to remote farming areas.
Delayed Relief and Breakeven Gaps
Authorities approved a Tk 50 increase per sack, but the change will not take effect until July 1, 2027. Hossain said that increment will merely bring dealers to breakeven.
Association leaders demand an immediate Tk 100 increase instead. Without it, licensed dealers warn they will shut down, endangering fertilizer supply during peak planting seasons.
Losses among licensed operators also push trade into the unregulated grey market. Bottlenecks will follow if compliant businesses exit.
Legal Challenge Against New Policy
Dealers have challenged the Integrated Policy on Fertiliser Dealer Appointment and Distribution-2026 over conflicting clauses. The association filed a High Court writ petition on September 2.
Following the petition, the court issued a 60-day rule directing authorities to resolve the issues. Hossain noted that district monitoring committees continue recruiting new dealers anyway.
Adding distributors during a margin crunch splits sales among more players. Turnover drops, making survival harder for everyone.
Supply Risks for Rural Distributors
The Ministry of Agriculture has not scheduled talks on dealer appointments or commission timelines. Hossain warned that inaction risks halting fertilizer deliveries across key agricultural districts.
Market operators now watch to see if court pressure forces the ministry to the table before the 60-day window closes.