Bangladesh's agricultural growth has dropped significantly in the outgoing fiscal year (FY2024-25), falling to just 1.79 per cent compared to 3.3 per cent in FY2023-24.
Experts warn that this notable slowdown in agriculture-the country's largest employment-generating sector-could have a ripple effect on the broader economy.
In response, the government has increased budgetary allocations for the sector in the upcoming fiscal year (FY2025-26) in a bid to revive momentum.
A combined total of Tk 390 billion has been earmarked for the ministries of Agriculture, Livestock and Fisheries, and Food-excluding subsidies and incentives-representing 5.01 per cent of the total national budget.
Last year, the sector received Tk 380 billion, or 4.8 per cent of the overall budget.
Agricultural economist Professor Golam Hafeez Kennedy said that floods during the July-September period last year severely damaged Aman, Aus, and other seasonal crops, which may have contributed to the weakened performance.
He also pointed out that the prices of several crops-including potatoes and onions-remained notably low this year.
"Beyond natural disasters and price crashes, a slowdown in trade, sloth value addition might also be responsible for the sluggish growth," he said.
"What's concerning is that the decline in agriculture hasn't been offset by significantly higher growth in the service or manufacturing sectors."
Manufacturing did see a nominal improvement, posting a growth rate of 4.34 per cent in FY2024-25, up from 3.51 per cent in the previous year.
However, the service sector saw a drop, slipping to 4.5 per cent from 5.5 per cent in FY2023-24.
The country's GDP growth declined to 3.79 per cent in FY'25 from 4.22 per cent in FY'24.
An official from the Agriculture ministry said that improved data quality also played a role this year.
"The agricultural data is free from political influence, reflecting a more accurate picture," he said.
He said that the cost of subsidies and incentives was reduced to Tk 170 billion in FY25, down from Tk 250 billion the previous year.
An additional Tk 173 billion has been allocated for subsidies for FY'26, with increased funding for the promotion of modern agricultural practices.
"We expect the sector to rebound and post notable growth in the coming year," the official said.
Meanwhile, Bangladesh Agricultural Economists Association (BAEA) president Md Ahsanuzzaman Lintu, said we have to significantly increase the budget for research and development (R&D) to address the country's changing climate.
"Crop, fisheries, and livestock production are facing mounting challenges due to global climate change," he said, adding that spending on R&D for all sectors remains below 1.0 per cent of the total national budget.
"This minimal allocation is far from sufficient to ensure sustainable agriculture," he warned.
He also said the struggles faced by the agro-processing industry, citing inadequate financing, high freight costs, complex taxation, and a lack of focused research.
"Increased value addition in agriculture could strengthen the farm sector and significantly contribute to manufacturing as well," he said.
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