Bangladesh’s agricultural sector is facing a severe threat as the artificial fertilizer crisis deepens, raising concerns over the country’s food security and production targets. While government authorities insist that there is no shortage of fertilizer, farmers across the country are struggling to procure essential inputs at affordable prices, leaving them vulnerable during the critical Boro rice and onion production seasons.
Artificial Shortage and Market Manipulation: According to local agro experts, the crisis is largely artificial, driven by syndicates and unscrupulous traders manipulating the market for profit. Fertilizers are technically available, but only at inflated prices that many farmers cannot afford. This has sparked outrage among cultivators, especially onion growers in Kushtia and Rabi farmers in Shariatpur.
Noor Alam Dulal, Daily Industry correspondent from Kushtia, reported from Kumarkhali Upazila that onion cultivation, previously a profitable enterprise, is now under pressure due to fertilizer shortages and price manipulation. “Last year, onion prices were favorable. At the start of the season, onions sold at Tk 35-40 per kilogram. A few months ago, the price reached Tk 120-135 per kg. Currently, onions are selling at Tk 85-90 per kg,” he said. “The cost of producing one kilogram is Tk 22-25, so farmers are still making a profit. However, they face extreme difficulties procuring fertilizers at fair prices due to syndicates and dealer manipulation.”
Farmer Complaints: Inflated Prices and Limited Availability: On-site visits to Jaduboyra, Panti, Bagulat, Nandalalpur, and Chapra unions revealed that groups of 20-30 people, including farmers, workers, and students, were engaged in planting onion saplings. They described severe shortages of essential fertilizers such as non-urea TSP, MOP, and DAP, with prices inflated by Tk 5-10 per kilogram by unscrupulous traders.
Liakot Ali Sheikh of Bhaluka village in Panti Union explained, “Onion prices were good last year, so people opted to cultivate onions instead of other crops. But fertilizers are not available according to demand.” Touhidul Islam, a grower from Bhaluka Purbapara village, said, “I cultivate onions on two bighas. Dealers only sell 10-20 kg of fertilizer at the government price, forcing farmers to buy from sub-dealers at Tk 500-700 extra per sack.
Dealers and sub-dealers are syndicating and selling at excessive rates.”
Abu Badsha from Borichara village, cultivating 13 bighas, added, “The cost of land lease, cultivation, and maintenance is around Tk 40-50 thousand per bigha. While we still make profit from onion cultivation, fertilizers are being sold in limited quantities, and we are forced to pay more than market rates.”
Akkas Ali Molla of Lakshmipur village further stressed, “The shortage of fertilizers has persisted for years. The cost of cultivation keeps rising due to the high price of fertilizers. Farmers are in extreme crisis. Immediate government intervention is needed.”
Fertilizer Market Data and Official Responses: Local sources indicate that TSP fertilizer bags costing Tk 1,350 are being sold for Tk 1,850-2,000, DAP bags priced at Tk 1,050 are going for Tk 1,450-1,600, and MOP bags priced at Tk 1,000 are being sold for Tk 1,150-1,200 in sub-dealer and open markets.
Khandaker Abdul Gaffar, President of the Kushtia BCIC Fertilizer Dealers Association, acknowledged the farmers’ grievances, stating, “The government is not providing fertilizer according to demand. Despite contacting the ministry, supplies remain insufficient. Dealers cannot meet farmers’ demands, but no dealer is selling at excessive prices. Sub-dealers and a few unscrupulous traders are collecting fertilizers and selling at higher rates, and they must face legal action.”
Contrarily, Upazila Agriculture Officer Md. Raisul Islam rejected allegations of a shortage, noting, “There is no shortage of fertilizer. Farmers are standing in line to buy at fair prices. However, a few unscrupulous traders have sold fertilizers at higher rates. Raids have been conducted, and fines imposed.”
Upazila Executive Officer Farzana Akhtar assured, “Legal action will be taken if any syndicates are operating among dealers. Our administration is ensuring that farmers get fertilizers at government prices and as per their needs.”
Gas Shortage Exacerbates Urea Production: In addition to market manipulation, domestic urea production faces challenges due to acute gas shortages. The Bangladesh Chemical Industries Corporation (BCIC), which operates the country’s urea factories, reported that insufficient gas supply prevents factories from operating at full capacity.
BCIC requested the finance and energy ministries, Petrobangla, and other authorities to guarantee a minimum daily gas supply of 197 million cubic feet (mmcfd) to keep four out of five factories operational during the Boro planting season. Without adequate gas, urea production is projected to fall short, forcing the government to increase imports, thus raising subsidies for the agricultural sector.
Muhammad Fouzul Kabir Khan, Energy and Mineral Resources Adviser, told The Daily Industry, “Current supply cannot meet BCIC’s requested level. Shortfalls in domestic production will be compensated with imports. Domestic gas demand is around 4,000 mmcfd, but imports can supply only 2,800-2,900 mmcfd, so industries, power plants, and fertilizer factories are all receiving less than required. However, food security will not be affected, as urea imports will meet demand.”
Production Targets and Capacity Constraints: CIC’s letter highlighted that the national urea production target is 18 lakh tonnes for the year. Due to gas shortages, only two factories, including Ghorashal, can operate fully, limiting output to around 11 lakh tonnes. Prolonged closures of more than half a year have caused machinery deterioration, reducing the original 31 lakh-tonne annual capacity to 20 lakh tonnes. Actual output under current supply constraints ranges from 8-11 lakh tonnes.
BCIC Chairman Md. Fazlur Rahman stated in a letter to a high-level committee, “Keeping four plants operational continuously requires 180.81 mmcfd daily. Adequate gas through increased LNG imports would boost urea production, save foreign currency, and create employment. We urge the government to ensure sufficient supply for domestic production rather than relying solely on imports.”
To offset LNG import costs, the Bangladesh Energy Regulatory Commission (BERC) increased the gas price for fertilizer plants from Tk16 to Tk29.25 per cubic metre. Still, BCIC noted that the authorized supply is 140 mmcfd, below the 197 mmcfd required for continuous operation.
Impact on Onion and Boro Rice Production: The shortage and high cost of fertilizers directly threaten key crops. In Kushtia, onion cultivation, targeting 4,920 hectares in 2025-26, is already affected, although seedlings have been planted on 3,690 hectares. Farmers express growing interest due to previous profitability, but fertilizer access remains a bottleneck.
In Shariatpur, Rabi crop growers fear production losses as urea availability is constrained. Petrobangla reported supplying 2,632 mmcfd nationwide on 3 January, with fertilizer plants receiving less than required. Of the total supply, 756 mmcfd went to power generation and 1,439 mmcfd to other sectors, leaving plants under-supplied by 86 mmcfd.
Recommendations by Experts: Agricultural economists and industry experts emphasize that transparency in fertilizer distribution is crucial. Prof. Dr. Md. Harun-Ur-Rashid, Department of Agricultural Economics, Dhaka University, told Daily Industry, “Artificial shortages and syndicate-driven price inflation create uncertainty for farmers. The government must strictly monitor distribution channels and penalize middlemen engaging in hoarding or overcharging.”
Akkas Ali Molla, a local farmer from Kushtia, stressed, “Immediate intervention is needed. Farmers are bearing excessive costs due to inflated fertilizer prices, which threaten cultivation and overall production.”
Energy adviser Muhammad Fouzul Kabir Khan added, “Domestic fertilizer plants cannot operate efficiently without adequate gas. Balancing imports and domestic supply is essential. While imports ensure short-term needs, domestic production must be prioritized to maintain long-term sustainability and reduce dependence on foreign suppliers.”
Government Response and Field Actions: Authorities have conducted raids and fines to curb overpricing. Upazila administration and mobile courts in Mymensingh, Kushtia, and Shariatpur have penalized violators, while legal frameworks are being reinforced to prevent syndicate operations. BCIC, in coordination with the Ministry of Agriculture, is working to ensure supply alignment with demand, though infrastructure and energy constraints remain.
Farzana Akhtar, Upazila Executive Officer, said, “We are closely monitoring dealers and sub-dealers. Legal measures will be taken against those who artificially inflate prices. Farmers must have access to fertilizers at government-approved rates.”
Looking Ahead: With Boro planting underway and onion cultivation gaining momentum, the fertilizer crisis presents a critical challenge for Bangladesh’s food security. Experts warn that if market manipulation continues and gas supply constraints persist, the country could face shortfalls in staple crops, pushing food prices higher and threatening livelihoods.
Prof. Dr. Harun-Ur-Rashid concluded, “Addressing both the artificial market constraints and energy supply issues is imperative. Government policy must ensure that fertilizers are accessible, affordable, and distributed transparently, or the agricultural sector will suffer long-term consequences.”
As the peak cultivation period continues, farmers, dealers, and authorities remain on high alert. While raids and legal measures provide short-term relief, structural solutions addressing market manipulation, supply chain transparency, and energy security are essential to avert a full-blown crisis.
