Bangladesh fertilizer subsidies favor biggest landholders, World Bank finds

Bangladesh’s largest fifth of landholders receive half of fertilizer subsidies, while the smallest 40% receive just 13%, according to a World Bank report examined by The Daily Star.

Benefits increase with fertilizer purchases, favoring larger farms even though 92% of farms operate on less than 2.5 acres. The bank recommended gradually replacing price controls with market pricing and directing support to small and marginal farmers through electronic vouchers.

It cautioned that abrupt price increases could force farmers short of cash to cut fertilizer use, threatening yields and food prices. Farm size alone is an incomplete measure of poverty, the report said.

The bank urged authorities to consider household welfare, cultivated area, and input needs when targeting assistance. It also recommended securing supplies, maintaining buffer stocks, and ensuring timely distribution while reforms proceed.