PDB seeks Tk9,750cr to clear power dues ahead of Boro season

Highlights:

• PDB seeks Tk9,750 crore in subsidies to clear power dues.
• Unpaid bills threaten uninterrupted electricity for Boro irrigation.
• Boro produces over half of Bangladesh's total rice output.
• Nearly 29% of irrigation pumps depend on electricity.
• El Niño may increase drought risks and irrigation demand.
• Government is expanding fertiliser imports and dealership networks.

The Bangladesh Power Development Board (BPDB) has requested the finance ministry to urgently release Tk9,750 crore in outstanding subsidies. The funds are needed to clear mounting dues to power producers and guarantee an uninterrupted electricity supply for irrigation during the critical upcoming Boro crop season.

Infographic: TBS

Nearly 29% of the country's irrigation pumps rely on electricity. Maintaining a stable power supply is crucial for Boro, Bangladesh's primary rice-producing season, which accounts for over half of total national output and requires intensive irrigation. In parallel, the government is overhauling fertiliser dealership networks to safeguard food security.

A Power Division official confirmed that a formal letter was dispatched to the finance ministry on 15 September via the Power Division, prioritising prompt clearance of power producer bills ahead of the Boro and summer months.

The official said the Bangladesh Power Development Board, commonly known as PDB, sent a letter to the finance ministry through the Power Division on 15 September requesting the urgent release of the outstanding subsidy.

According to PDB data, subsidy-related dues to independent power producers stood at Tk4,662.88 crore as of August. Outstanding payments to rental power plants stood at Tk1.19 crore, while dues for electricity imported from India and Nepal, including power from Adani Power's Jharkhand plant, stood at Tk456.82 crore.

The PDB also has Tk3,122.58 crore in subsidy-related dues to RPCL-NORINCO International Power Limited for the period from 30 September 2025 to May 2026, while another Tk1,508.99 crore is owed to the Coal Power Generation Company Bangladesh Limited for the period from August 2024 to May 2026.

The PDB said in its letter that releasing the subsidy would enable it to make payments to private power producers, rental plants, imported-power suppliers and state-owned coal-fired power plants on time, helping maintain power generation and supply.

The Board also said adequate stocks of liquid fuel and coal need to be maintained at power plants in the national interest, making timely settlement of power purchase bills essential.

Boro accounts for more than half of rice output
According to Bangladesh Bureau of Statistics data, the country produced over 4.06 crore tonnes of rice from the Aus, Aman and Boro seasons combined in the fiscal 2024-25. Boro accounted for over 2.13 crore tonnes, or 52.47% of total rice production.

Boro was cultivated on over 1.20 crore acres that fiscal year. Timely irrigation and fertiliser application are crucial for maintaining yields, while adequate irrigation is also required for Rabi crops such as wheat, maize and mustard.

Officials said Boro cultivation could expand further in the coming season, potentially requiring irrigation for nearly four months across a large area.

According to the Bangladesh Agricultural Development Corporation's latest irrigation survey for FY24, the country had 17.2 lakh irrigation pumps, of which 4.92 lakh were powered by electricity. These pumps irrigated 25.3 lakh hectares of farmland.

Another 12.3 lakh irrigation pumps were diesel-powered, while about 3,000 were powered by solar energy.

The Power Division, however, puts the number of electricity-powered irrigation pumps at about 4.98 lakh, a slightly higher figure than the BADC survey.

Agriculture accounts for 2.2% to 2.5% of total electricity consumption, according to the Power Division.

The government has said it plans to bring all irrigation pumps under solar power within five years. It has also waived duties on imports of equipment for expanding solar power in the current fiscal year, with plans to increase the number of solar-powered irrigation pumps before the next Boro season.

El Niño could add pressure on irrigation
The anticipated strengthening of El Niño could add to irrigation requirements during the Boro season.

The World Meteorological Organization said on 3 September that El Niño was firmly established and expected to intensify into a very strong event in the coming months, with the phenomenon likely to persist into early 2027.

It also warned that a very strong El Niño can significantly alter rainfall and temperature patterns and increase the risk of drought and extreme heat.

According to government officials, severe drought and record-breaking temperatures could occur during the crucial Boro season. This raises concerns that the demand for irrigation will increase further to sustain Boro yields. Consequently, ensuring an adequate supply of electricity and fuel – alongside fertilisers – has become crucial for maintaining agricultural production during the Boro season.

Govt moves to strengthen fertiliser distribution
Alongside electricity supply, the government has taken several steps to ensure adequate fertiliser distribution ahead of the Boro and Rabi seasons.

The agriculture ministry has invited applications for new fertiliser dealerships, with applications accepted until 3 September. Officials said the selection process is under way and is expected to be completed nationwide by next month.

State Minister for Local Government Mir Shahe Alam told parliament on 9 September that around 3,759 dealers appointed under the previous government had left their positions, leaving the corresponding dealer points vacant. The government plans to appoint 4,918 new dealers to fill the vacancies, according to government statements reported in parliament.

The government said fertiliser demand from October to February would be 35.87 lakh tonnes, against arrangements for 51.71 lakh tonnes, leaving a stated surplus of 15.84 lakh tonnes.
Boro cultivation mainly requires urea, muriate of potash, triple superphosphate and diammonium phosphate, with urea accounting for the largest requirement.

The Department of Agricultural Extension has begun collecting district-level demand for urea and other fertilisers, while the agriculture ministry has already approved October allocations for non-urea fertilisers.

A senior official of the agriculture ministry, speaking on condition of anonymity, said the government has started the process of importing a total of 20 lakh tonnes of fertiliser, including urea, MOP, TSP and DAP, ahead of the Boro season.

The agriculture ministry and other relevant agencies are working to bring the large volume of fertiliser into the country on time, the official said.

Meanwhile, at a meeting of the Cabinet Committee on Government Purchase held yesterday, the government approved the import of 35,000 tonnes of MOP, 40,000 tonnes of urea and 80,000 tonnes of DAP under the government procurement system.

The committee also approved imports by 20 private-sector companies of 5 lakh tonnes of DAP, by 14 companies of 2.2 lakh tonnes of MOP and by 10 companies of 2 lakh tonnes of TSP.

PM stresses uninterrupted farm production
Prime Minister Tarique Rahman visited the agriculture ministry on 13 September and held a meeting with ministry officials on agricultural production, food security and related issues.
According to a senior agriculture ministry official who spoke to TBS on condition of anonymity, the prime minister instructed officials to ensure adequate fertiliser and irrigation for uninterrupted rice production during the upcoming Boro season.

The official said the PM also instructed the industries and energy ministries to support the supply of fertiliser and irrigation, while asking the agriculture ministry to coordinate the overall effort and ensure that no area faces a fertiliser shortage.

Govt committee move and expert opinion
Mohammad Shahadat Hossain, chairman of the Parliamentary Standing Committee on the Ministry of Agriculture, told TBS that there are no problems with fertiliser procurement or stockpiles. However, there are some issues at the management and distribution stages.

The committee has also advised the power and energy divisions to ensure that irrigation is not disrupted during the Boro season. Initiatives have also been taken to bring irrigation pumps under solar power, and the committee has recommended that these initiatives be implemented quickly.

"We hope there will be no problems with fertiliser and irrigation during the upcoming Boro and Rabi seasons," he said.

Professor Asif Reza Anik of Gazipur Agricultural University told TBS that the upcoming Boro season is likely to be challenging due to weather conditions and management-related issues. 

The gap between the day's minimum and maximum temperatures has widened significantly, and such weather can cause the soil to crack, increasing demand for irrigation, he said.

At the same time, Prof Asif said, the fertiliser supply system has broken down in various parts of the country. "Therefore, steps must be taken well in advance to ensure adequate supplies of irrigation water and fertiliser during the upcoming Boro season."

He further said, "As fertiliser factories in the country have been unable to produce according to their targets due to the gas shortage, efforts must be made to ensure the timely procurement of the required fertiliser from global sources. At the same time, adequate supplies of electricity and fuel oil must be ensured for irrigation."