New policy for streamlining dealers' appointment, fertiliser distribution

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S M Jahangir
The government adopted Wednesday a new policy for streamlining the process of appointing dealers and distributing fertiliser, abolishing the existing sales representatives under authorised dealers.
Some other fresh provisions, including allowing local retailers to purchase fertiliser from the authorised dealers for selling it to farmers, have also been incorporated in the new policy.
The government through a circular announced the new 'Fertiliser Dealership Appointment and Fertiliser Distribution Policy 2009', which will come into force from October 1, 2009, official sources said.
According to the officials, the new policy aims to make sure an uninterrupted supply of fertliser to local farmers for boosting the country's agricultural output.
"The main objective of adopting the new policy is to make the supply of the fertliser, especially urea, easily available for farmers," a senior agriculture ministry official told the FE.
In view of this, the government has brought about some changes in the existing fertiliser distribution policy.
One of the important features of the new policy is to abolish the provision of appointing sales representatives under authorised dealers introduced by the past caretaker government.
Following some disruptions in the fertiliser supply, the interim administration allowed appointment of three sales representatives under each of the authorised dealers across the country to ensure the farmers' access to the agri-input.
As a result, some 15,327 new representatives joined the existing 5,109 union-level authorised dealers, official sources said.
Under the new policy, each of the 'union parisad' will have an authorised dealer, they said, adding that the authorities have also been allowed to appoint more-than-one dealers, if necessary, in any union.
Besides, the existing dealers will get the opportunity to renew their licences under the new policy, said an official.
According to the new policy, any individual, having warehouse facility of at least 50 tonnes and a minimum bank solvency of Tk 500,000, qualifies to be a dealer.
In place of the previous sales representatives, the new policy has allowed local retailers/sellers to purchase fertiliser from the authorised dealers for selling it to the farmers, he said.
Such provision has been made for ensuring farmers' greater access to the prime agri input, officials said.
The new policy has also empowered the upazila-level committees on fertiliser affairs to select the retailers and issue cards in favour of them.
Besides, the district upazila and union-level committees will be overseeing the entire supply and distribution arrangements of fertiliser at their respective areas.
Production, import and supply of urea have gone entirely under official arrangement, sources said, adding the country's annual demand for urea is estimated at 2.8 million tonnes.
The private sector, on the other hand, is largely involved with the import and marketing of non-urea fertiliser like TSP, SSP, DAP and organic fertiliser.