The World Bank approved USD 1.1 billion in financing on Saturday to bolster Bangladesh’s food security and emergency response capabilities, aiming to mitigate the impact of volatile global fertilizer and fuel markets.

This substantial package is divided into two distinct initiatives.

The USD 300 million Emergency Support for Food Security Project is designed to provide time-bound financing for the import of essential fertilizers required for the upcoming Aman and Boro rice seasons, spanning from July 2026 through April 2027.

According to the World Bank, this project will facilitate the import of 600,000 metric tons of fertilizer, with half consisting of urea, ultimately supporting 1,400,000 hectares of rice cultivation managed by smallholder farmers.

Jean Pesme, World Bank Division Director for Bangladesh and Bhutan, explained the necessity of the funding, stating, “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.”

He added, “The World Bank has stepped up with immediate support to help Bangladesh mitigate this impact to ensure fertilizer supply for rice production, protect households, jobs and livelihoods and continue with essential services.”

The significance of these agricultural cycles was further emphasized by Souleymane Coulibaly, World Bank Lead Economist and Task Team Leader for the project, who noted, “Bangladesh’s food security depends on Aman and Boro rice seasons, which together account for about 90% of the country’s total rice production.

Further, about half the population is employed in agriculture sector. So, any disruption in fertilizer supply would not only threaten food security, it would deepen poverty and cost jobs.”

In addition to the food security initiative, the World Bank approved the USD 713 million Contingent Emergency Response Project.

This component is designed to support quick-disbursing emergency expenditures, including livelihood assistance and cash transfers for affected households, as well as aid for micro, small and medium enterprises to help preserve jobs and stabilize incomes during times of crisis.

This project will also secure funding for essential fuel and energy supplies to maintain critical services such as medicine, food distribution, medical equipment, and water. The project is set to disburse funds by June 30, 2026.

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