Fertiliser dealers seek higher transport cost, sales commission
FE REPORT | Monday, 14 October 2024
An estimated 55,000 dealers under two state entities have sought increased transport costs and sales commission as they are struggling to turn the corner with growing living and other expenses.
The Bangladesh Fertiliser Association (BFA) in a letter recently requested the finance adviser, Dr Salehuddin Ahmed, to take necessary action regarding the issue.
They have demanded enhancements in shipping costs and sales commission to Tk 200 from existing Tk 100 per sack of fertiliser, according to sector insiders.
An official said the proposal was under review by the authorities concerned.
The government introduced fertiliser dealership arrangement in 1995 to ensure availability of fertilisers at farmer level in every union.
Since then, state-appointed dealers have been supplying fertilisers smoothly.
At present, the Bangladesh Chemical Industries Corporation (BCIC) has 5,600 affiliated dealers across the country and 09 sub-dealers or retailers, with each dealer having 50,400 retailers with more or less 10 in each union.
On the other hand, the Bangladesh Agricultural Development Corporation (BADC) has an estimated 4,000 dealers.
They have been providing fertilisers at farmer level with a good reputation.
In 2009, the government raised the amount to Tk 100 from Tk 60 taking into account transport costs, warehouse rent, interest on capital and profit, and other incidental expenses for taking supplies to self-storage from factories or buffer warehouses by fertiliser dealers.
According to the leaders of the association, transport costs, in particular, have increased manifold in the past 15 years.
During the period, reads the letter, the dealers have been selling fertilisers at the same sales commission against rising fuel oil prices. Even fertiliser prices have also been hiked.
Besides, dealers' investment and bank interest rates have increased substantially, but their sales commission has not increased proportionately.
However, BCIC and BADC dealers have been selling chemical substances to farmers despite undergoing financial losses. So, running a dealership business has become hard for such losses due to rising attendant and living costs.
If the dealers' demand is not addressed, according to the letter, it may not be possible to continue with the business due to financial losses.
BFA chairman (acting) Md Faizur Rahman could not be contacted for comment despite making several attempts over phone.