Subsidised fertiliser being smuggled into Myanmar

Aman paddy has been cultivated on nearly 500 acres of land in Uttar Pukuria village of Rajapalong Union in Ukhiya, Cox’s Bazar. More than a hundred farmers in the village have complained that they are unable to obtain urea fertiliser, which they need after transplanting the rice seedlings.

Mohammad Tayyub, 45, a resident of the village, is one of these farmers. He said he went to a dealer in Ukhiya Bazar on 30 September to buy 30kg of fertiliser. After waiting in line for nearly seven hours, he received only 5kg. He is worried about how he will protect the crops on his seven kani of land (one kani equals 40 decimals) with this amount of fertiliser.

Like Tayyub, other farmers in the village are also worried about the fertiliser shortage. It has been learned after speaking to farmers that the shortage is not limited to Ukhiya; most areas of Cox’s Bazar, including Teknaf, Ramu, Eidgaon, Pekua and Chakaria, are also facing a fertiliser crisis. The crisis is worsening day by day as several syndicates smuggle fertiliser into Myanmar.

Speaking to officials of the Department of Agricultural Extension and fertiliser dealers, it was learnt that the government provides substantial subsidies on fertiliser sales to ensure that farmers receive fertiliser at affordable prices. Currently, the government-fixed price of a 50kg sack of urea fertiliser at the open market or dealer level is Tk 1,350 (Tk 27 per kg).

However, a sack of fertiliser sells for more than Tk 8,000 in Myanmar’s Rakhine State. As a result, several syndicates are smuggling fertiliser allocated to farmers into Myanmar in pursuit of higher profits. In exchange, consignments of drugs are brought into the country.

A research report recently published by the World Bank stated that nearly 80 per cent of the Agriculture Ministry's budget is spent on fertiliser subsidies. These subsidies have helped maintain agricultural production and price stability.

Speaking to traders involved in imports and exports through Teknaf Land Port, it was learnt that urea fertiliser and fuel oil are being smuggled from Bangladesh into Rakhine State by taking advantage of geographical proximity and the unstable internal situation in Myanmar. Smuggling syndicates involved in the trade bring yaba and crystal meth from Myanmar in exchange for fertiliser and fuel oil.

There is no urea fertiliser manufacturing plant in Rakhine State. Moreover, the unstable situation has disrupted the supply of fertiliser to the state, prompting local farmers to buy fertiliser smuggled from Bangladesh at higher prices.

According to information from the Border Guard Bangladesh (BGB) and the Coast Guard, between 1 June and 20 September this year, the BGB and Coast Guard seized 247,908kg of urea fertiliser in separate drives along the Teknaf, Ukhiya and Naikhongchhari borders and the Naf River. During this period, 127 people involved in smuggling were arrested.

Most recently, on 2 October, the BGB seized 81 sacks of urea fertiliser and smuggled goods worth Tk 700,000 during a drive along the Ghumdhum border in Naikhongchhari.

Lieutenant Colonel Md Foyezul Kabir, commanding officer of the Naikhongchhari 11 BGB, said surveillance along the border had been strengthened to prevent smuggling of fertiliser, fuel oil and other goods.

Locals said fertiliser and fuel oil were being smuggled through at least 23 border points, including Anjumanpara and Balukhali in Palongkhali, Ukhiya; Whykong, Kanjarpara and Ulubunia in Teknaf; Leda and Damdamiya in Hnila; and Ghumdhum in Naikhongchhari. In most cases, the people assisting in the smuggling are arrested, but the masterminds remain beyond the reach of law enforcement agencies.

Coast Guard media officer Lieutenant Commander Sabbir Alam said more than 70 smugglers had already been arrested, along with fertiliser-laden trawlers, during Coast Guard operations while they were attempting to smuggle fertiliser into Myanmar through coastal waters. Efforts were underway to bring the masterminds to justice as well.

M Gafur Uddin Chowdhury, chairman of Palongkhali Union Parishad in Ukhiya, said those involved in smuggling fertiliser and fuel were also bringing in consignments of yaba, ice and other drugs. There are no legitimate transactions in dollars or taka on the other side of the border (Myanmar), he added.

Shahjahan Chowdhury, a member of parliament from Cox’s Bazar-4 (Ukhiya-Teknaf) constituency, said several syndicates were involved in fertiliser smuggling. Although law enforcement agencies had seized large quantities of fertiliser and major consignments of yaba and arrested smugglers during raids, the masterminds remained beyond their reach. They must be identified and brought to justice, he said.

Gias Uddin, a farmer from Whykong Union in Teknaf, said, “I am going from one dealer to another in search of fertiliser, but I am not getting the amount I need. Yet fertiliser is being smuggled across the border almost every day.”

Abdul Gafur, a farmer from Kochubunia in Teknaf Sadar Union, said those with smaller plots of land somehow manage to get fertiliser, but farmers with larger plots are unable to obtain the amount they need. Dealers are selling fertiliser to many people who are not farmers. Later, these fertiliser stocks are handed over to smuggling syndicates.

Nawab Mia, a farmer from the Kachhapia area of Ramu, said he cultivated paddy on seven kani of land, but dealers turned him away, saying there was ‘no fertiliser available’. Left with no choice, he bought a small quantity of fertiliser from the market at double the price and spread it across his fields. Due to the continued shortage, Aman seedlings on one and a half kani of his land have turned yellow and are at risk of being destroyed.

Mohammad Kabir, president of the Ukhiya Upazila Fertiliser Dealers Association, said some unscrupulous traders were smuggling fertiliser allocated to farmers into Myanmar to make extra profits. As a result, fertiliser was not available in Ukhiya according to demand.

Regarding fertiliser smuggling, Bimal Kumar Pramanik, deputy director of the Department of Agricultural Extension, said several teams were monitoring markets to prevent smuggling. Special attention was being given to fertiliser sales in Teknaf and Ukhiya upazilas.

Dealers were submitting information on fertiliser sales to the Department of Agricultural Extension online after completing sales. Even so, action would be taken against the dealers concerned if allegations of illegal fertiliser sales were found to be true, he added.