Market-based reforms implemented in the agricultural input management system are often claimed to be one of the success stories in Bangladesh. Based on the findings of 154 surveys and 16 in-depth interviews with the stakeholders during 2003-2004, the paper found that although there have been some notable achievements, the reforms have not achieved their expected outcomes and more importantly, in cases where they have been achieved, their sustainability is in question. The paper discusses the underlying reasons for the success and the problems of the reforms and also offers some policy recommendations to resolve the gap between the expected and the achieved outcomes. In the context of increasing donor pressure for adopting market-based reforms, the findings are likely to have important implications for both the donors and other countries in South Asia.