Katalyst II: Market Development in the Fertilizer Sector of Bangladesh

The Katalyst II project (2011-2012) is a continuation of the first Katalyst project. It is implemented under the Ministry of Commerce of the Government of Bangladesh (GoB) by Swisscontact and the German Agency for Technical Cooperation (GIZ) International Services. 

The project is jointly funded by the following: Swiss Agency for Development and Cooperation (SDC); the United Kingdom Department for International Development (DFID); the Canadian International Development Agency (CIDA); and Embassies of the Kingdom of the Netherlands.

Katalyst II follows a pro-poor, market development approach in promoting economic growth. Strengthening and supporting the development of the systems that underpin agricultural development are emphasized. IFDC is providing services and expertise to improve market development in the Bangladesh fertilizer sector, with an emphasis on advancing private sector participation in the market. Another project focus is on fertilizer policy framework and the removal of investment barriers.

Crop agriculture, particularly grain production, is the major driving force of the Bangladesh economy. Rice is the country’s staple food and accounts for about 77 percent of the total cropped area. Some areas have had success with crop diversification to maize and vegetable production. Also, maize has been particularly important as a livestock feed.

But despite its crucial role in the Bangladesh economy, the agricultural sector is underperforming; actual yields remain at 50 percent of their potential. Soil nutrient levels of phosphorus and potassium as well as secondary nutrients and micronutrients are being depleted. Improved soil nutrient management, supported by irrigation and quality seed, is a key component of the GoB’s strategy to improve yields on a sustainable basis.

To achieve sustainable crop yield growth through soil health and fertility management, Katalyst II is working to: promote correct fertilizer management practices; ensure the availability of all fertilizers at the farm level for balanced fertilizer application; and facilitate a market-friendly regulatory framework. IFDC is helping to increase the yields of rice, maize, jute, vegetable and potato crops through educational efforts focused on the effective, efficient and correct use of fertilizer and other agro-inputs.

Katalyst II is strengthening the Bangladesh Fertilizer Association (BFA) by helping to establish a market information system within the association. IFDC is also assisting BFA by designing a preliminary plan for yearly fertilizer demand projections in each of Bangladesh’s upazilas (government districts). A yearly demand projection is important to BFA so that member agro-dealers order the appropriate fertilizers in the appropriate amounts.

Updated May 2012

 

Katalyst Information

Articles

KATALYST Develops Private Sector Markets in Bangladesh (Taken from IFDC Report Volume 35, No.3)