Dhaka [Bangladesh], June 27 (ANI): The World Bank approved USD 1.1 billion for two projects to help Bangladesh mitigate the price and supply volatility in the global fertiliser and fuel markets, sustain food security, and enable rapid response.

'Rising food, fertiliser, and fuel prices stemming from the Middle East Conflict, along with tighter fiscal space, have deeply impacted Bangladesh's economy, hitting smallholder farmers as well as 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 this impact to ensure fertiliser supply for rice production, protect households, jobs and livelihoods and continue with essential services,' she added.

The Emergency Support for Food Security Project (USD 300 million) will provide time-bound financing to help Bangladesh import fertilisers critical for the Aman and Boro seasons in July-October 2026 and October 2026-April 2027, respectively.

The country imports more than 85 per cent of its fertiliser requirements. The project will finance imports of 600,000 metric tonnes of critical fertilisers, half of which would be Urea, covering 1,400,000 hectares of rice production cultivated by smallholder farmers.

'Bangladesh's food security depends on Aman and Boro rice seasons, which together account for about 90 per cent of the country's total rice production. Further, about half the population is employed in the agriculture sector. So, any disruption in fertiliser supply would not only threaten food security, it would deepen poverty and cost jobs,' said Souleymane Coulibaly, World Bank Lead Economist and Task Team Leader for the project.

The Contingent Emergency Response Project at USD 713 million will support quick-disbursing emergency expenditures, including cash transfers and livelihood assistance for affected households and micro, small, and medium enterprises, helping stabilise incomes and preserve jobs during crises. It will also finance fuel and energy supplies to continue essential services, including food, medicines and medical equipment, energy, and water.

The project will be disbursed by June 30, 2026.

'This project will provide Bangladesh immediate access to funds through the World Bank's crisis preparedness and response toolkit by repurposing unutilised financing from existing projects, directing resources where they are most needed and protecting people, businesses, and jobs from the impact of shocks,' said Lesley Jeanne Yu Cordero, World Bank Lead Disaster Risk Management Specialist and Task Team Leader for the project. (ANI)