Fertiliser prices cut drastically in Bangladesh

Dhaka, Bangladesh | January 20, 2009 by D-8 Secretariat

The Bangladesh government cut down the fertiliser price to help farmers

The government today brought down the prices of non-urea fertilisers in a bid to help the farmers in the coming Boro season.

The price of TSP (triple super phosphate) came down from Tk 75-80 to Tk 40 per a kg, MoP (murate of potash) was reduced from Tk 69-70 to Tk 35 and DAP (diammonium phosphate) from Tk 87-90 to Tk 45, Agriculture Minister Matia Chowdhury said today after a meeting at the finance ministry.

With the new pricing, the government’s subsidy on non-urea fertiliser stands at 55 percent, which was 15 percent before, to reduce production cost of rice in Boro season.

This means over Tk 2,700 crore fresh subsidy would be needed — Tk 1520 crore to government institutions that import DAP, TSP and MOP and Tk 1236 crore to private importers.

On top of this, the government has already been forking out Tk 4,200 crore subsidy on urea — Tk 30 a kg — to keep prices at Tk 12 for farmers.

The demand for urea fertiliser this season is 12.10 lakh metric tonne (MT) while the demand for TSP is 3.75 lakh MT, MoP 2.50 lakh MT and DAP over 1 lakh MT.

D-8 has been urging its member to implement food security programs. The organization is scheduled to have its first Minister Meeting on Food Security that will discuss joint-investment on fertilizer to support food security program of D-8, among other things. Earlier in the 6th Summit in Kuala Lumpur, Malaysia, one of the result was that head of states of D-8 pledged their readiness to deal with the global challenges regarding with the skyrocketing food prices. Some identified potential cooperation that discussed among D-8 head of states and need to be followed for their implementation were:

* To develop some fertilizer and pesticide plants in D-8 countries, and apply Preferential Trade Agreement for exporting and importing the products to ease D-8 farmers to produce more food products and the supply;
* To develop cooperation on animal feed factory within D-8 countries; and apply Preferential Trade Agreement for exporting and importing the products;
* To establish a Seeds Bank in D-8 Countries for enough seeds stock whenever are needed for increasing more food products within the countries, as well as a ready stock whenever needed by farmers because of natural disasters, and other unfortunate situation;
* To establish D-8 Food Fund for helping the needy on the food within D-8 countries caused by current unfortunate situation in food crisis time;
* To set up an R&D and technological cooperation in the areas of agricultural development, especially to increase the productivity both in inland-farming and agro-based industry;
* To cooperate for diversifying agricultural products supply, including fishery; animal husbandry; and organic products;
* To establish capacity building, including education and training program; and
* To establish a public-private partnership, by involving more private sectors participation in the programs.

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