Share for the broader agricultural sector, including crop, fisheries, livestock, farm subsidy and incentives, has been reduced to 5.73 per cent in term of total outlay of the next budget (FY'24) from 6.19 per cent in the proposed budget for FY'23.
A total of Tk 437 billion has been allocated for the sector in FY'24 out of Tk 7.6 trillion from Tk 421 billion in FY'23 out of 6.8 trillion.
The drop is colossal considering the real expenditure on the broader agriculture as per the revised budget FY'23 which is a record Tk 543 billion.
The proposal for incentives and subsidies for the agriculture sector was Tk165.52 billion in FY'23 but real expenditure has been counted as above Tk 276 billion thus fueling the outlay, according to the finance ministry.
Rocketing trend of global fertiliser prices, diesel and electricity costs, farm inputs, raising funds for research to maintain high growth of production of crops, meat, milk, fish, and poultry items forced the government to increase the expenditure.
A Tk251 billion has been allocated for agriculture ministry in FY'24 when it was Tk 338 billion as per revised FY'23.
Growing global fertiliser costs, a hike in domestic diesel, electricity prices mainly contributed to the record subsidy and incentive expenditure, said Additional Secretary of the Agriculture Ministry Rabindra Sri Barua.
Asked, he said the government has a target to rationalise the subsidy and incentives to minimise pressure on the reserve as well as to give farmers all logical supports to keep and maintain sound growth of production of key produce.
He also said prices of fertilsier have been showing a downtrend which could help cut costs in the upcoming financial year.
"But the government ensures that farmers will get all inputs at affordable prices," he said.
Farm economist Prof Golam Hafeez Kennedy said apart from the subsidies or incentives, allocation for annual development programme (ADP) is crucial for better understanding for the government's motifs about farm sector.
He said: "ADP allocation for the agriculture ministry is Tk 42.9 billion which is hardly 1.6 per cent of the total allocation for FY'24; it was 42.5 billion or 1.7 per cent of the total outlay in the FY'23."
During the last one year, the BDT has lost its value by 25 per cent against the US dollar which should take in accounts, he said.
"So, a squeeze in ADP means the government is not giving much priority on research and development (R&D) when the sector needs high focus in a changing climatic condition when farmers need stress tolerant crop varieties, they need modern methods to cope with climate odds", he said.
Farm economist Prof Gazi M A Jalil said R&D budget should be increased notably to achieve desired outcome from agriculture, fisheries and livestock.
It is key to maintain firm growth of food production locally, he said.
He said the government has raised fertilser price which will affect the farmers at the outset of the Aman season.
The agriculture ministry will have to ensure it that the prices will not increase further as a surge in input prices firstly affect farmers and secondly the limited income consumers, he said.
Allocation for fisheries and livestock is 0.56 per cent of the total outlay which is almost same like that of FY'23, he added.
To boost production of meat, fish, milk and egg, allocation for R&D of fisheries and livestock should also be increased and it should be spent properly.
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