Fertiliser dealers demand higher commission, halt to new recruitment

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.

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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.

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.

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 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.

According to the BFA, the High Court has since issued a 60-day rule for the issues to be settled legally. The association alleged, however, that district fertiliser and seed monitoring committees are still appointing new dealers in various districts despite the court's rule.

The BFA added that the Ministry of Agriculture has yet to take any initiative to discuss the disputed provisions with it. Mosharraf cautioned that the authorities concerned would be held responsible for any untoward incident arising from the situation.