BANGLADESH FERTILIZER SECTOR

This report analyzes current and potential problems of Bangladesh"s fertilizer sector and recommends projects and studies to solve them. To meet the challenge of the projected rapid increase in fertilizer use and reduce the burden of government and donor subsidies, the system"s capabilities must be better utilized through improved planning, organization, coordination, monitoring, communication, and information development and exchange. Agricultural research and extension are fragmented, resulting in duplicated efforts and inadequate financial, manpower, and facility resources. Besides geographic and climatic factors, fertilizer supply and use are affected by: (1) shortage and irregular availability of fertilizer; (2) lack of coordination on all levels; (3) low incentives for farmer usage; (4) poor communication systems; and (5) shortage or export of skilled extension, technical, and management personnel. Also, as fertilizer use increases, there will be additional needs for port, transportation, handling, storage, and communications facilities. Recommendations for solving current problems include conducting an organizational study of the entire fertilizer sector and of the Bangladesh Agricultural Development Corp.; developing 5-year supply and demand plans; implementing management training programs; and studying incentives for fertilizer wholesalers, retailers, and farmers. Recommendations for solving potential problems include indepth studies of: government subsidies; building rather than leasing future warehouses; fertilizer use; future P205 supply strategy; private sector fertilizer wholesaling, handling, and packaging; as well as development of a transportation and warehousing model, and standard fertilizer specifications. A demographic and geographic Bangladesh data list as well as a direct fertilizer subsidy worksheet are appended.