Agriculture is a cornerstone of Bangladesh's economy, contributing around 12 per cent of its GDP and providing employment to nearly 40 per cent of the population. This sector is essential for food security and economic stability, given that rice, wheat, jute, and vegetables are staple crops that not only meet domestic demand but also generate export revenue. Bangladesh has seen considerable growth in food production, largely due to small-scale farming, which feeds millions domestically and supports the livelihoods of rural communities. Additionally, agricultural exports, including tea, fish, and tropical fruits, play an important role in diversifying the country's economy, helping to reduce poverty and improve rural incomes. However, climate change, resource constraints, and infrastructure gaps threaten its productivity, making government investment and climate-resilient practices crucial for sustainable growth. Bangladesh's agriculture sector faces numerous challenges threatening production and food security. Key issues include climate vulnerability, insufficient infrastructure, limited access to markets, and financial constraints.
Most farming households in Bangladesh are marginal or smallholder farmers who hold less than 1.5 acres of land. According to a recent report published by IFPRI, marginal and smallholder farmers constitute about 83 per cent of the farming community and operate on about half of the cultivable land. Moreover, the study highlighted that land is crucial for agricultural production, yet 56 per cent of rural households are landless. Furthermore, arable land in Bangladesh has declined at a rate of about 0.3 per cent per year, severely constraining overall food production.
Bangladesh faces increasing weather irregularities, including more frequent droughts, floods, and storms, which affect crop yields and soil fertility. Climate projections suggest these challenges will only intensify, demanding urgent adaptation and resilience strategies in the sector. Barisal, once dubbed the granary of Bangladesh, is now lagging in terms of rice crop productivity, which can be attributed to frequent cyclones and increased salinity due to sea-level rise. According to the Bangladesh Integrated Household Survey (BIHS) 2018-19 data, a nationally representative rural survey conducted by the International Food Policy Research Institute (IFPRI), rice yields per hectare in Barisal are about 36 and 33 per cent lower than in Rangpur and Khulna, respectively. Moreover, the recent price hikes of potatoes can also be attributed to erratic weather conditions.
Reduced subsidies in the national budget have left farmers struggling to afford essential inputs like fertilisers and seeds. Despite recent budget increases, subsidy allocations are still insufficient to meet rising production costs, causing strain on farmers and reducing the competitiveness of domestic agriculture. Farmers also require subsidy support for fuel, as most irrigation pumps in Bangladesh are powered by diesel or electricity.
The long-term trend in rice production shows a seasonal shift in importance from the wet, rainy season to the dry winter season, as Boro rice has emerged as the most important rice crop in Bangladesh. More than half of the total rice production comes from Boro rice, while the rest comes mostly from Aman rice, with a meagre percentage from Aus rice. This phenomenon can be explained by climate change. Due to heavy, erratic rainfall, floods, and cyclones, a significant portion of Aus and Aman rice is destroyed annually. In contrast, Boro, being a dry-season crop, remains relatively unaffected by adverse climatic shocks. To ensure the sustainability of Boro rice production, it is crucial to provide farmers with proper irrigation systems, as Boro rice is almost entirely irrigated and cannot survive on rainfall alone. The government needs to ensure sufficient electricity supply to support irrigation for Boro rice fields.
The sector is hindered by inadequate storage facilities and a fragmented supply chain, leading to high rates of crop spoilage. Poor transportation infrastructure also limits farmers' ability to efficiently distribute their produce, restricting access to larger markets and lowering potential profits. Significant price gaps exist between growers and final consumers. Research on the agrifood system in Bangladesh indicates that these price gaps can be attributed to the existence of syndicates and inefficiencies in market mechanisms. Policymakers must formulate effective strategies to address this dual problem, ensuring growers receive fair prices while consumers gain relief from high food price inflation.
Urban expansion is decreasing the availability of arable land, intensifying land-use competition. As rural populations migrate to urban centres, the agricultural workforce shrinks, posing risks to food production as demand continues to grow. Research shows surplus agricultural labour in the western region of the country, whereas districts in the east face labour shortages. Based on basic supply-demand rules, agricultural labourers in the western region receive lower wages compared to other regions. Initiatives should be undertaken to improve mobility and address the wage gap.
On the international stage, Bangladeshi agricultural products face strong competition from neighbouring countries like India and Vietnam, which offer lower prices and higher-quality produce due to more advanced technology and infrastructure. Products made from jackfruit, currently in abundant supply in Bangladesh, present lucrative export opportunities. Ensuring the quality and safety of agricultural commodities is crucial for penetrating international markets effectively. The Bangladesh Standards and Testing Institution (BSTI) can play a pivotal role in this regard.
Addressing these issues requires increased investment in infrastructure, expanded access to financial resources for farmers, and a strategic approach to climate resilience. Particularly, significant investments are needed to improve storage facilities across the country. A Public-Private Partnership (PPP) model could be explored to achieve this transformation. Collaborating with private sector stakeholders, especially in areas of technological innovation and logistics, could modernise Bangladesh's agriculture and improve both productivity and sustainability. Increased investment in research and development of newer, high-yielding crop varieties is also vital. While the Government of Bangladesh allocates substantial funds for farmer subsidies, these programmes should be carefully assessed to ensure efficiency and effectiveness.
The writer is a Research Analyst at the International Food Policy Research Institute (IFPRI). He can be reached at [email protected]
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