Manjur Morshed Tuhin (Patuakhali) 

According to government records, there is demand, allocation and lifting of fertilizers. In some places, information on fertilizer stocks at government warehouses and dealer levels is also available. But after visiting the field level in every upazila, including Bauphal, Galachipa, Kalapara and Rangabali of Patuakhali, farmers are having to buy the same fertilizer at prices Tk 200 to Tk 750 higher per bag than the fixed price. 

In some places, fertilizer is not available at the designated sales centers. In most ward-level areas, no warehouses or sales centers of retail sellers can be found, although their ward-based warehouses and sales centers are listed in the official records. Allegations of selling under the license of a dealer from one ward in the market of another ward, multiple fertilizer sales centers operating side by side in the same market, and selling fertilizer at prices higher than the fixed price have raised serious questions about fertilizer distribution management in Patuakhali.

Farmers allege that taking advantage of weak supervision of the government fertilizer distribution system, a section of dealers and retailers are holding fertilizer and creating shortages. Again, some are selling fertilizer in convenient markets outside their designated areas. Whether there is negligence in monitoring or collusion of concerned officials in these irregularities also deserves investigation. However, to determine the truth of the allegations, dealer-wise allocation, lifting, stock and sales records need to be verified.

According to information from the District Agriculture Department, there are 80 BCSIC government dealers, 2 BADC dealers and 680 retail fertilizer sellers in Patuakhali. The government maximum retail price of a 50-kg bag is Tk 1,350 for urea fertilizer, Tk 1,050 for DAP, Tk 1,050 for TSP and Tk 1,000 for MOP. However, according to information obtained from farmers at the field level, allegations have been found that urea is being sold at Tk 1,400 to Tk 1,500, DAP at Tk 1,600 to Tk 1,800 and MOP at Tk 1,100 to Tk 1,200.

The biggest question has arisen over DAP fertilizer. In August, the demand for DAP fertilizer in Patuakhali district was 1,233 metric tons. Against this, the allocation was 846 metric tons and lifting was 660 metric tons. That means there is a shortage in allocation and lifting compared to demand. But alongside this shortage, there are also allegations of DAP being sold at higher prices in some places. Therefore, the question has arisen: from where are these fertilizers available in the market beyond the government allocation?

There is no picture of a shortage at the district level in the case of urea either. In August, the demand for urea fertilizer in the district was 3,662 metric tons. The allocation was 3,680 metric tons and lifting was 3,946 metric tons. The demand for TSP was 741 metric tons, against which the allocation was 705 and lifting was 663 metric tons. The demand for MOP was 640 metric tons, against which the allocation was 549 and lifting was 331 metric tons.

That means although there are records of allocation and lifting on paper, major inconsistencies have emerged in delivering fertilizer to marginal farmers at the fixed price. To investigate the reasons behind this inconsistency, it is necessary to match the sales registers, stock registers and allocation records at the field level.

On September 17, during a field visit to Hajirhat Bazar in Ward No. 9 of Adabaria Union under Bauphal Upazila, it was seen that fertilizer was being sold at several shops within a short distance of the market. Locals claimed that fertilizer is sold at about eight shops in the market. Among them, three shops are associated with ‘Johan Shafa Enterprise’, the establishment of government fertilizer dealer Md. Shafiqul Islam of Adabaria Union. There is a dealer's warehouse and a separate sales center there. As the dealer was not present, a person named Md. Hasan was seen operating the business.

There are also allegations that dealers from Ward Nos. 1, 3 and 7 or persons associated with them are selling fertilizer at Hajirhat Bazar in Ward No. 9. The issue also emerged in the statements of local traders.

Trader Apu Munshi said, “This is my shop. I have the dealer’s license of Hanif Bhai of Ward No. 1. Since the market is in Ward No. 9, I sell his licensed fertilizer here.”

Another trader, Abul Bashar, said, “My brother is the dealer of Ward No. 3. Since there is a market here, we are selling here. Everyone else is selling, so I am also doing some business.”

Trader Mosharraf Hossain said, “I am a retail seller from Ward No. 3. The shopkeeper next to me is from Ward No. 7.”

If these statements are true, questions arise as to how the conditions of designated sales centers and authorized areas are being implemented. At the same time, it is necessary to verify the approval of so many sales centers within a short distance in one market, the allocation of each of them and the legality of their sales.

Farmer Nazmul Hawladar, who came to Hajirhat Bazar to buy fertilizer, said, “I bought urea for Tk 1,400, China DAP for Tk 1,800 and MOP for Tk 1,050.” That means, according to the price he paid, he had to pay Tk 50 more for urea and Tk 750 more for DAP than the government price.

Farmer Md. Ibrahim Khan said, “I bought urea for Tk 1,400 and DAP for Tk 1,400. The retailers said they sell at higher prices because they have to buy from the big dealer at a higher cost.”

Meanwhile, Md. Enamul Haque Hasan, director of ‘Johan Shafa Enterprise’, said that they have one shop and two warehouses. Although DAP fertilizer has been allocated this month, it has not arrived yet. He said that nine sub-dealers of the union were given 40 bags of urea each this month. They did not take other fertilizers. He also claimed that he does not know whether the sub-dealers sell them at Tk 1,800 or Tk 1,900.

However, the availability of DAP in the same market creates an inconsistency with his statement. If DAP has not arrived with the concerned dealer this month, then it is necessary to find out whose allocation the DAP available in the market belongs to, where it came from and at what price it is being sold.

Enamul Haque Hasan further claimed that a type of organic fertilizer resembling DAP is being sold in the market, the bag price of which is around Tk 550, but it is being sold to farmers at Tk 25 to Tk 30 per kilogram. He claimed that these fertilizers are brought from the Savar area of Dhaka and that such fertilizers may also be found in the warehouses of some BCS government dealers. However, the independent truth of this claim needs to be verified. It is also a matter of examination whether any fertilizer or fertilizer-related product is being sold without the approval of the Agriculture Department.

Questions have also arisen over the field-level supervision of the Agriculture Department. Zobayer Hossain, the Sub-Assistant Agriculture Officer responsible for Adabaria Union, said that due to being engaged in other work under an office order, he could not go to Adabaria in the morning. He claimed that he did not see DAP there and told the reporter to go to the market and see for himself. But information about the sale of DAP was obtained from farmers and traders in the same market.

In this situation, it is important to disclose how many times the responsible field officials have inspected which sales centers, whether they have examined the stock registers and sales registers, and what measures they have taken against allegations of charging excessive prices.

Bauphal Upazila Agriculture Officer Md. Milon said that according to the 2009 policy of the Department of Agricultural Extension, there is no rule for a dealer from one ward to go to another ward and sell fertilizer. Following allegations of selling fertilizer at higher prices, among three dealers in Boga Union, one was fined Tk 10,000 and two were fined Tk 2,000 each, totaling Tk 14,000, very recently. The sales and stocks of dealers are regularly verified. One person is working against three blocks in Adabaria Union due to a shortage of Sub-Assistant Agriculture Officers. Action will be taken if fertilizer is sold at higher prices based on specific complaints.

Field information indicates that several factors are working together behind the increase in fertilizer prices. In the case of DAP, supply and lifting shortages, transportation costs, sales outside the designated area, multiple intermediaries, excessive profit and possible hoarding—all these issues need to be brought under investigation. However, before allegations of hoarding or syndication against any particular person or establishment are proven, the relevant documents and transactions need to be verified.

As cultivation of watermelon and various other crops is set to begin in the coastal areas of Patuakhali from October, demand for DAP fertilizer is likely to increase. Therefore, farmers fear that if dealer-wise stock and sales records are not strictly verified now, the shortage may become more severe.

Dr. Mohammad Amanul Islam, Deputy Director of the Department of Agricultural Extension, said, “If you can name any dealer or shop selling fertilizer at an excessive price, only then will we take action. We will be committed to taking any measure, including mobile courts, against any irregularities involving fertilizer. Retail sellers have been permitted after seeing their warehouses. They cannot sell anywhere they want. If fertilizer is sold at an excessive price and the law is violated, action will be taken according to the rules and law.”

If selling fertilizer at a price higher than the fixed price, selling outside the authorized sales center, unauthorized storage or marketing of fertilizer is proven, there is an opportunity to take administrative and legal action against the concerned dealers and sellers under the prevailing Fertilizer Management Act, Consumer Rights Protection Act and relevant government policies. These may include cancellation of dealership, fines, sealing of warehouses, seizure of goods and, depending on the circumstances and nature of the offense, filing of cases or other punitive measures. If negligence of duty, assistance in irregularities or activities outside the rules by government officials and employees is found, there is also an opportunity to take departmental and applicable legal action against them. However, in which case and under which section what punishment will be imposed will be determined on the basis of the nature of the offense and evidence during the investigation.

Now there is only one main question: even though there are records of fertilizer allocation, lifting and stock at the district level, why are farmers not getting fertilizer at the fixed price? If a dealer from one ward sells under a license in another ward, with whose permission? How are multiple fertilizer sales centers operating within a short distance in the same market? Where is the fertilizer lifted by the dealers going, how much is being kept in stock and at what price is it being sold to farmers? Are these accounts being regularly examined?

When extra money is taken from farmers’ pockets, it not only increases their production costs; ultimately, the pressure also falls on the market for agricultural products including paddy, rice and watermelon. If fertilizer supplied with government subsidy does not reach the actual farmers at the fixed price, then the effectiveness of the entire distribution system comes into question. Therefore, it is now necessary to match the allocation, lifting, warehouse-based stock, list of retail sellers, authorized sales centers and sales registers of every dealer in Patuakhali with the reality at the field level.