FERTILIZER DISTRIBUTION IMPROVEMENT

THIS SECOND REGULAR EVALUATION COVERS THE PERIOD 3/79-4/80 AND WAS PREPARED BY USAID STAFF FROM PROJECT FILES, RECORDS OF THE BANGLADESH AGRICULTURAL CORPORATION (BADC, THE PROJECT"S EXECUTOR), AND SPECIAL EVALUATIONS. USAID WILL PROPOSE A TWO YEAR EXTENSION TO FURTHER CONSOLIDATE THIS SUCCESSFUL PRPJECT"S ACHIEVEMENTS. IN-COUNTRY FERTILIZER STOCK LEVELS WERE INCREASED IN "79 TO PROVIDE A FIVE MONTH SUPPLY. THE EXTENDED NATIONAL MARKETING SYSTEM REDUCED RESTRICTIONS ON PRIVATE DEALERS PROVIDING FARMERS WITH 130% INCREASED ACCESS TO LOWER PRICED FERTILIZER. INDIGENOUS FARMERS PURCHASED 93% OF THE IMPORTED DIAMMONIUM PHOSPHATE (DAP) FERTILIZER. THE AUTHORS RECOMMEND THAT THE BADC PROMOTE THE PURCHASE OF DAP WHICH COSTS 10-15% LESS TO IMPORT THAN TRIPLE SUPER PHOSPHATE FERTILIZER. USAID ALSO FINANCED WHEAT SEED IMPORTS OF WHICH 6,275 TONS WERE SOLD AND PLANTED. THIS UNANTICIPATED INPUT RESULTED IN 100,000 TONS OF LOCAL WHEAT PRODUCTION. A "BAG-ON-SHIP" EXPERIMENT FOUND THAT MECHANICAL BAGGING WOULD REDUCE IMPORTATION COSTS BY 15-20%. RESISTANCE HAS LESSENED TOWARDS A MAJOR SHIFT IN CONTROL OF FERTILIZER DISTRIBUTION FROM THE PUBLIC TO THE PRIVATE SECTOR. ALTHOUGH RENTED AND PURCHASED STORAGE SPACE INCREASED THE BADC"S STORAGE CAPACITY, CONSTRUCTION REMAINED AT THE INPUT LEVEL. HOWEVER, A NATIONAL STORAGE PLAN WAS DEVELOPED AND 22 SITE PLANS WERE DESIGNED TO CONSTRUCT STORAGE WAREHOUSES. THE AUTHORS RECOMMEND THAT THE BADC DECIDE HOW MUCH ADDITIONAL STORAGE CONSTRUCTION USAID WILL FUND BEFORE COMPLETION OF THE PLAN IN JULY 1980. AN ANALYSIS OF DATA COLLECTED FROM 1053 FARMS INDICATED THAT GREATER USE OF FERTILIZER WOULD INCREASE SMALL FARM CROP YIELDS EVEN IN A SEVERLY BAD AGRICULTURAL YEAR. THE EVALUATION CONCLUDED THAT PROJECT ASSISTANCE IN THE FERTILIZER SUBSECTOR OF AGRICULTURE IS A VIABLE CONCEPT IN BANGLADESH AND MAY BE EQUALLY APPLICABLE IN OTHER DEVELOPING COUNTRIES.