The World Bank has approved $1.1 billion for two projects aimed at helping Bangladesh mitigate price and supply volatility in the global fertilizer and fuel markets, strengthen food security, and enhance its capacity to respond rapidly to emergencies.
“Rising food, fertilizer, and fuel prices stemming from the Middle East conflict, along with tighter fiscal space, have deeply impacted Bangladesh’s economy, hitting smallholder farmers and poor and vulnerable people the hardest,” said Jean Pesme, World Bank Division Director for Bangladesh and Bhutan.
“The World Bank has stepped up with immediate support to help Bangladesh mitigate these impacts, ensure an adequate fertilizer supply for rice production, protect households, jobs, and livelihoods, and maintain essential services,” he added.
The Emergency Support for Food Security Project ($300 million) will provide time-bound financing to help Bangladesh import fertilizers critical for the Aman and Boro rice-growing seasons, scheduled for July–October 2026 and October 2026–April 2027, respectively, according to a World Bank release.
Bangladesh imports more than 85% of its fertilizer requirements. The project will finance the import of 600,000 metric tons of essential fertilizers, half of which will be urea, covering approximately 1.4 million hectares of rice cultivation by smallholder farmers.
“Bangladesh’s food security depends on the Aman and Boro rice seasons, which together account for about 90% of the country’s total rice production. Moreover, about half of the population is employed in the agricultural sector. Any disruption in fertilizer supplies would not only threaten food security but also deepen poverty and result in job losses,” said Souleymane Coulibaly, World Bank Lead Economist and Task Team Leader for the project.
The Contingent Emergency Response Project ($713 million) will support quick-disbursing emergency expenditures, including cash transfers and livelihood assistance for affected households and micro, small, and medium-sized enterprises (MSMEs), helping stabilize incomes and preserve jobs during crises.
The project will also finance fuel and energy supplies to ensure the continued delivery of essential services, including food distribution, healthcare, energy, and water supply. The project is expected to disburse funds by June 30, 2026.
“This project will provide Bangladesh with immediate access to funds through the World Bank’s crisis preparedness and response toolkit by repurposing unutilized financing from existing projects. It will direct resources where they are needed most while protecting people, businesses, and jobs from the impacts of shocks,” said Lesley Jeanne Yu Cordero, World Bank Lead Disaster Risk Management Specialist and Task Team Leader for the project.