Fertiliser dealers’ commission raised, prices for farmers unchanged

The government has increased the commission for dealers of four types of fertiliser to encourage them to improve the distribution system. Under the new decision, dealers will receive a commission of Tk3 per kilogram on urea, DAP, TSP and MOP fertilisers. However, the retail prices of these fertilisers for farmers will remain unchanged.

The Finance Division of the Ministry of Finance recently issued a notification in this regard. It said the commission was being revised to maintain a steady supply of fertiliser for agricultural production, ensure smooth market management and make distribution activities at the dealer level more efficient. The new prices and commission structure will come into effect on July 1, 2027.

Under the new structure, the dealer-level price of urea has been reduced from Tk25 to Tk24 per kilogram. However, the fertiliser will continue to be sold to farmers at Tk27 per kilogram, as before. This means the difference between the dealer-level price and the retail price for farmers will be Tk3 per kilogram.

Similarly, the dealer-level price of DAP fertiliser has been reduced from Tk19 to Tk18 per kilogram, TSP from Tk25 to Tk24, and MOP from Tk18 to Tk17. At the farmer level, DAP will continue to sell for Tk21 per kilogram, TSP for Tk27 and MOP for Tk20. Thus, the dealer-level price of all four types of fertiliser has been reduced by Tk1 per kilogram.

Although the government has lowered fertiliser prices at the dealer level, the decision will not impose any additional financial burden on farmers. They will continue to purchase urea, DAP, TSP and MOP at the existing prices. At the same time, dealers will receive a Tk3-per-kilogram commission, representing the difference between the retail price for farmers and the newly fixed dealer-level price.

Maintaining a consistent supply of fertiliser is crucial for uninterrupted agricultural production. The government expects that the higher commission will encourage dealers to become more active in the distribution process and make it easier to ensure timely delivery of fertiliser to farmers.

The new structure, therefore, aims to make the fertiliser distribution system more efficient while keeping prices unchanged for farmers.