AGRICULTURAL INPUTS PROJECT III

PROJECT SEEKS TO INCREASE ACCESS OF FARMERS TO FERTILIZER AT THE POINT OF PURCHASE WHILE PROVIDING DEALERS WITH GREATER INCENTIVE FOR ENCOURAGING FERTILIZER SALES AND USE. AID-FINANCED FERTILIZER WILL MAINTAIN AN ADEQUATE SUPPLY -- A BASIC PRE-CONDITION TO THE AVAILABILITY OF FERTILIZER. PROJECT COMPONENTS INCLUDE A PILOT TEST OF RESTRUCTURING THE BANGLADESH AGR DEVELOPMENT CORP (BADC) FERTILIZER DISTRIBUTION SYSTEM THROUGH: 1. PROVIDING DISCOUNTS TO FERTILIZER DEALERS WHO PURCHASE IN QUANTITY. 2. PERMITTING FARMERS TO BUY UP TO A STATED AMOUNT OF FERTILIZER DIRECTLY FROM BADC WAREHOUSES. 3. ALLOWING FARMERS TO BUY FROM ANY DEALER WHETHER OR NOT IN THE FARMER"S OWN THANA(DISTRICT) OR UNION. 4. OPTIMIZING THE NUMBER OF DEALERS AT UNION LEVEL, INCLUDING SIMPLIFYING THE DEALER APPLICATION PROCESS. 5. PERMITTING DEALERS TO SELL AT LOCAL MARKETS WITHIN THE UNION AND DISTANCE CATEGORY IN WHICH THE DEALER IS RESIDENT. 6. PERMITTING DEALERS TO BUY FERTILIZER FROM NEAREST BADC THANA WAREHOUSE EVEN IF IT IS NOT LOCATED IN THE SAME THANA (DISTRICT) WHERE THE DEALER IS LOCATED. PROJECT SHOULD RESULT IN MORE CONVENIENT PURCHASE LOCATIONS, MORE FLEXIBLE DEARLER MARK-UPS, A GUARANTEED MINIMUM SUPPLY OF FERTILIZER FOR SALE TO ALL FARMERS, REDUCTION OF SUBSIDIES AND EXPERIMENTATION WITH UNRESTRICTED DEALERSHIPS. BADC WILL IMPLEMENT THE SYSTEM CHANGES ABOVE, WILL IMPORT FERTILIZER, REVIEW BIDS AND MAKE AWARDS, WILL ARRANGE FOR IN-COUNTRY TRANSPORT, STORAGE AND COORDINATE WITH OTHER GOVT AGENCIES AND OTHER DONORS. BENEFICIARIES WILL BE SMALL FARMERS AND SECONDARILY BDG WITH GREATER FOOD CROP PRODUCTION. USAID PROVIDES FERTILIZER, TRAINING, EQUIPMENT AND MATERIALS, EVALUATION SURVEYS, CONTINGENCY. HOST COUNTRY PROVIDES IN-KIND CONTRIBUTIONS.