Bangladesh, a South Asian country located on the Bay of Bengal, has been facing a major food crisis for years now. The country’s reliance on agriculture as the main source of income for a majority of its population has made it vulnerable to the effects of climate change, natural disasters, and other environmental factors that threaten the country’s crop yields. In order to address this issue, Bangladesh has been focusing on ensuring “fertilizer security” as a key strategy to tackle the crisis. In this op-ed, we explore the importance of this approach and the efforts underway to achieve it.
Around the world, there is a growing crisis in energy and food production. None of the global supply systems can be considered in a normal state. Amidst this challenging situation, it is essential to maintain the supply of fertilizers as they are directly related to food production. Fertilizers are crucial for modern agriculture’s crop production systems, and they play a significant role in increasing yields. In fact, the success of Bangladesh’s agricultural production system is largely dependent on inorganic fertilizers, which are responsible for 50 percent of the total production. However, the price of fertilizers has increased in Bangladesh, and the government has had to increase the prices of all kinds of fertilizers, including urea, DAP, TSP and MOP.
The price of urea fertilizer, which is most widely used in agriculture, has increased to 26 takas from the previous price of 21 takas in August 2020. In addition, the price of DAP fertilizer has increased to 21 takas per kilogram; TSP is now selling at 27 takas per kilogram while MOP fertilizer is priced at 20 takas per kilogram. Agriculture Minister has announced that the government has no other option but to increase the fertilizer prices due to the economic condition of the country, the price of the dollar, the price of fertilizer in the international market, and huge subsidies. The price of fertilizers has been increasing in the international market for the last three years, and this has led the government to provide huge subsidies for this sector. The government is currently providing subsidies of about 46,000 crore takas, and an increase in the price of fertilizers will impact the overall cost of production in the agricultural sector.
Furthermore, farmers in Bangladesh have been using more fertilizer than required, especially urea, which damages the land and crops. Thus, it is essential to maintain a moderate use of fertilizers to reduce production costs and increase food production. In recent years, the government has been providing incentives to farmers in other ways, including cash incentives such as seeds, diesel, and electricity, to help reduce the burden on farmers who are having a hard time paying for the increasing cost of fertilizers.
The government has been taking various initiatives to address the fertilizer crisis, increase domestic production, and reduce dependence on imports. One of its key initiatives was the privatization of the fertilizer industry, allowing private companies to import and distribute fertilizers, resulting in greater competition and improved efficiency. To make fertilizers more affordable and accessible, the government began providing large-scale subsidies and credit facilities to farmers. Through these initiatives, Bangladesh has achieved self-sufficiency in urea production, and production of other types of fertilizers has also increased in the country. In addition, the government has focused on increasing the use of organic fertilizers to reduce dependence on chemical fertilizers, which have been contributing to negative environmental impacts.
Despite these achievements, Bangladesh is still faced with challenges in the fertilizer industry. Almost all its fertilizer requirements are imported from abroad, and the government is forced to buy fertilizers at higher prices due to the increase in the price of fertilizers in the international market. The ongoing Russia-Ukraine war and the increase in oil prices have also impacted the price of fertilizers, causing their prices to surge. Nevertheless, the government remains committed to achieving self-sufficiency in fertilizer production and promoting the country’s agricultural sector’s development.
To achieve this goal, the government must continue to invest in expanding fertilizer factories and developing the Bangladesh Chemical Industries Corporation (BCIC) to oversee the development of the fertilizer industry and promote domestic production. The government must also develop advanced and modern machinery for agriculture, diversify crops, and switch to high-yielding and hybrid varieties, among others. These initiatives will not only reduce the dependence on imports but also improve the country’s food security, increase food production, and reduce harmful environmental impacts.
In conclusion, the Sheikh Hasina government’s initiatives and policies to achieve self-sufficiency in fertilizer production in Bangladesh are crucial for the growth and development of the country’s agricultural sector. These initiatives have ensured the availability and accessibility of fertilizers, reduced dependence on imports, and promoted the use of organic fertilizers to reduce negative environmental impacts. Nevertheless, the government needs to continue its efforts to maintain stability in the agricultural sector by keeping an eye on the market and price of agricultural products.
