The government is set to extend the 20 per cent power bill rebate facility to the owners of marginal fish farms, hatcheries, and livestock and poultry farms.
This important inclusion in the rebate beneficiary list, spearheaded by the Ministry of Fisheries and Livestock (MoFL), aims to drastically reduce production costs and boost profitability in the sector.
The MoFL has recently requested the finance ministry to take necessary steps regarding the issue.
Following the request, an inter-ministerial meeting would be held tomorrow (Wednesday) at the finance ministry where representatives from finance, agriculture, fisheries and livestock ministries, Power Division, Power Development Board, Bangladesh Rural Electrification Board and energy regulatory commission would participate.
Despite the MoFL having commenced operations separately from the Ministry of Agriculture (MoA) in 1986, it is still categorised as a sub-sector under agriculture in the National Budget and the Annual Development Programme (ADP).
This classification has historically complicated the extension of subsidies, the letter explained.
The Bangladesh Standard Industrial Classification (BSIC) places the Bangladesh Fisheries Development Corporation (BFDC) and the Bangladesh Agricultural Development Corporation (BADC) in the same category.
Currently, the MoA enjoys subsidised electricity rates under the 'irrigation pump' category, a benefit not fully mirrored for fisheries and livestock farmers.
The Finance Division's policy introduced a 15 per cent rebate on electricity used in agro-based industries, including milk processing, balanced feed production for poultry/cattle, and fish feed production.
On July 1, 2004, the rebate was increased to 20 per cent for electricity usage in agro-based industries, including the poultry sector.
The MoFL letter explained a significant hurdle that arose in 2016, when the Power Development Board (PDB) was informed that the 20 per cent rebate for the agriculture-based and poultry industries could not be sourced from the "agricultural subsidy" allocation.
However, recognising that the fisheries and livestock sector, while part of agriculture, operates under the separate budget of the MoFL, officials requested that the budget for this rebate should be considered separately to ensure implementation.
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