The skyrocketing input costs during this Boro season are expected to contribute to a further rise in rice production expenses, compounding the challenges for farmers already struggling with exorbitant costs.
Amid a lower fertiliser stock in government reserves, traders are charging an additional Tk 6-10 per kilogramme (kg) for both urea and non-urea fertilisers, resulting in a 30-40 per cent hike in production costs, according to farmers.
Irrigation costs have surged by up to 15 per cent, escalating to Tk 3,500-4,500 per bigha (33 decimals) depending on the region. Apart from these, costs for plowing, seeds, labour, and transportation have also increased, making it difficult for farmers to cultivate rice this year.
Hadisur Rahman, a farmer from Botlagari in Saidpur, Nilphamari, told the FE that they usually purchase fertilisers for the entire Boro season (cultivation to the tillering stage, from December to March) in December.
However, this year, sub-dealers in his village have raised prices by Tk 6 per kg for urea and Tk 7-10 per kg for DAP and MOP.
Despite paying higher prices, a number of farmers could not procure fertilisers either from local sellers or from the upazila headquarters. He said that one bigha of land requires approximately 70-80 kgs of fertiliser now, including both urea and non-urea, from planting to the tillering stage.
Md Sujauddowla, another farmer from Khansama in Dinajpur, said irrigation costs have surged by Tk 400-500 per bigha due to electricity crisis, which has forced most irrigation pump owners to switch to diesel-driven systems.
"I have started transplantation on two bighas of my land. The water cost will be Tk 8,500, compared to Tk 7200-7600 last year," he said.
Golam Sarowar, secretary of the Bangladesh Agricultural Farm Labour Federation (BAFLF), said fertiliser prices have hit a record high this year, with urea being sold at Tk 33 per kilogram, despite the government-fixed rate of Tk 27 per kilogram.
He stated that DAP is being retailed at Tk 31-32 per kilogram against the government rate of Tk 21, while MOP is priced at Tk 29-30 per kilogram compared to the official rate of Tk 20.
Sarowar attributed this situation to a lack of market monitoring by the agriculture and industry ministry, which has allowed traders to set prices arbitrarily.
He also pointed out a shortage of supply in the reported areas, urging the authorities to address immediately. He suggested that farmers should be provided with cash subsidies to help them cope with the soaring costs.
Apart from fertiliser, he said, the government should immediately review market prices of other inputs, including seeds, irrigation, plough, pesticide, which have also seen a 5.0-15 per cent hike, he said.
When asked, an official at the Bangladesh Chemical Industries Corporation (BCIC) told the FE that at present they have 0.72 million tonnes of urea in their stock, which should meet demand until January.
He added that an additional 0.4 million tonne will be imported between January and March. The official also mentioned that another 0.3-0.4 million tonne would be needed for rice and other Rabi crops and efforts are underway to finalise procurement deals from across the globe.
According to the agriculture ministry, there is a demand for 0.36 million tonnes of TSP, 0.74 million tonnes of DAP, and 0.413 million tonnes of MOP for the December-March period.
The Bangladesh Agricultural Development Corporation (BADC) is responsible for managing the supply channels for non-urea fertilisers. The BADC said that its warehouses and distribution channels currently hold stocks of 0.11 million tonnes of TSP, 0.14 million tonnes of DAP, and 0.23 million tonnes of MOP.
An official from BADC told The FE that the corporation, along with private sector importers, is actively working to bring in the required fertilisers within the necessary timeframe.
He also said that a significant issue arose, as the previous Awami League government failed to clear payments to some foreign suppliers, causing delays and complications in the fertiliser supply chain.
Dr Gazi M Jalil, a farm economist, said that the government should prioritise resolving the fertiliser issue considering the critical role of the Boro season in food production. He explained that the Boro season contributes over 55 per cent of the country's rice supply, making the market highly dependent on its production. And this season also grows all the potatoes and onions, he said.
Dr Jalil said that rice prices are already at record highs, as reflected in government inflation data, which shows a 14 per cent increase.
He warned that the surge in input costs could not only drive prices even higher but also impact production if the issue is not addressed by January.
The agriculture ministry has set a target to produce over 22 million tonnes of rice in this Boro season (FY 2025) against a production of 21 million tonnes in FY 2024.
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