The government has raised the commission dealers earn on fertiliser sales. For urea, triple super phosphate (TSP), diammonium phosphate (DAP) and muriate of potash (MOP), the dealer's margin rises from two taka to three taka a kilogram. The price farmers pay for these fertilisers is unchanged.

The new dealer-level prices were set in an order issued by the Finance Division on Tuesday, following a letter from the Ministry of Agriculture on Monday. The change takes effect on 1 July 2027.

Shahnaz Akter, agricultural economist in the ministry's fertiliser management and monitoring branch, said the dealer commission had not been raised since 2009. Dealers had been pressing for an increase for years, arguing mainly that the cost of transporting, loading and unloading fertiliser had gone up.

Under the new structure the dealer-level price of urea falls from Tk25 to Tk24 a kilogram, while the farmer continues to pay Tk27. DAP falls from Tk19 to Tk18 at dealer level against Tk21 for the farmer; TSP from Tk25 to Tk24 against Tk27; and MOP from Tk18 to Tk17 against Tk20.

In each of the four fertilisers, then, the dealer-level price has been cut by one taka a kilogram. Because the farmer's price is unchanged, the dealer's earnings rise by a taka on every kilogram sold.

Ministry officials say the increase reflects the rise in transport and handling costs over recent years. They add that keeping supply steady in the market and ensuring fertiliser is sold to farmers at the fixed price matter just as much.

Dealer appointment, storage, transport and distribution in the fertiliser system have long drawn complaints — particularly that fertiliser is sold above the fixed price during a shortage, and that shortages are sometimes manufactured.

Source: Samakal (staff correspondent)