Bangladesh Fertiliser Dealers Demand Commission Doubled To Tk 200 Per Sack

🌾 The Bangladesh Fertilizer Association (BFA) has demanded that the sales commission per sack of fertiliser be doubled from Tk 100 to Tk 200 and that the recruitment of new fertiliser dealers be put on hold. Md Mosharraf Hossain, chairman of the association, made the demands at a press conference at its office in Dhaka today.

📊 He said dealers have been pressing for a higher commission for 18 years without result. Over that period, fuel prices, transport costs, and the prices of essentials have risen repeatedly, sharply increasing dealers' operating costs. In 2008, the combined transport cost and sales commission was Tk 100 per sack. After transport and other expenses, dealers were left with a net commission of roughly Tk 25 to Tk 30 per sack. Under the same arrangement now, Mosharraf claimed, dealers lose around Tk 50 to Tk 55 on every sack.

💰 Commission Economics: Dealers Losing Money

• 💰 Current commission + transport: Tk 100/sack
• 💰 Net commission in 2008: Tk 25-30/sack
• ⚠ Current net position: Loss of Tk 50-55/sack
• 💰 Govt recently raised: +Tk 50/sack (effective July 1, 2027)
• 💰 BFA demand: Tk 200/sack total commission
• 📜 Pressing for: 18 years without resolution

He acknowledged that the government has raised the commission by Tk 50 per sack, but noted that the increase will not take effect until July 1, 2027. Even then, it would only bring dealers to a "no profit, no loss" position. To ensure their survival, he said, the commission must be raised by a further Tk 100, to Tk 200 per sack.

⚠ Supply Disruption Warning

Mosharraf warned that without an increase, dealers may gradually lose interest in the trade, which could disrupt the supply of fertiliser to farmers. He urged the government to give long-established dealers a chance to stay in business. The supply disruption warning is strategically significant — if fertiliser dealers exit the trade because of unprofitable margins, the distribution of fertiliser to farmers would be disrupted, potentially affecting agricultural production and food security.

📜 Objection To 2026 Dealer Policy

The association also objected to the Integrated Policy on Fertiliser Dealer Appointment and Distribution-2026, alleging that several of its provisions are inconsistent, unconstitutional, and self-contradictory. It filed a writ petition on the matter on September 2. The objection to the new dealer policy — which the government introduced to reform fertiliser distribution — reflects the tension between the government's effort to expand dealer networks (adding a third dealer per union) and existing dealers' concerns about their economic viability.

🌏 Strategic Context: Fertiliser Distribution Reform

For Bangladesh's broader agricultural input management, the BFA's demands highlight the structural tension in the fertiliser distribution system. The government's decision to raise commission by Tk 50 (from Tk 2 to Tk 3 per kg) — effective July 2027 — was a positive step, but the 10-month delay before the increase takes effect means that dealers will continue losing money through the critical Rabi season (October-March) when fertiliser demand peaks. The BFA's demand for Tk 200 commission (double the current Tk 100) reflects the cumulative impact of 18 years of cost inflation without corresponding commission adjustment.

The coming months will reveal whether the government addresses the BFA's demands through an expedited commission increase, a revision of the 2026 dealer policy, or a negotiated settlement that balances dealer viability with the government's distribution reform objectives. For Bangladesh's farmers, the stakes are tangible: a functioning fertiliser distribution network is essential for maintaining agricultural productivity and food security.