Agro-credit for farmers not available easily, timely: Study
Thursday, 30 October 2008
FE Report
A FAO/WFP joint mission on crop and food supply to Bangladesh has found that the agricultural credit for farmers to buy the best seeds, fertilisers and other inputs is not timely and easily available to many farmers and is very expensive in some areas.
"Credit accessibility should be at the door steps of the farmers at low interest rates preferably by private bankers without collateral," it said suggesting that some means must be found to address this problem effectively and provide farmer-centred credit on a sustainable basis.
The Mission identified an imbalance in the use of fertilisers by the farmers. "Urea being over-used and Phosphate and Potash being under-used, the imbalance needs to be addressed effectively for crops to receive the correct amount of nutrients at the right time and in the correct amounts," said the Mission Report prepared last August.
Given the international fertiliser market situation, state-to-state trade currently being promoted by the government seems to be a good initiative in the short run, the report prepared by the Food and Agriculture Organisation (FAO) and the World Food Programme (WFP) of the United Nations said. The Mission report also said sustainability and profitability of domestic production as well as liberalisation of distribution are issues for the medium term.
In its recommendation of Agriculture Policy, the Mission said more resources need to be invested in seeds to develop superior rice varieties for specific environments, including hybrids, salt-tolerant varieties high-value specialty rice varieties for export and possibly higher yielding types of floating rice. The possibility of using GMO techniques to develop salt, drought and submergence-tolerant varieties of rice and other crops needs to be properly investigated through public sector institutions and the appropriate policy implemented. Farmers should also be encouraged to use certified seed in order to produce higher yields from their very small plots. Seed quality inspection by the government needs to be improved, it added.
There is a lack of farmers' organisation, the report said adding that farmers, particularly marginal farmers and sharecroppers, are not organised into an effective economic lobby to look after their economic interests and so have to sell at the lowest prices at harvest.
Incentives aimed at increasing pulse crop production should be expanded, not only for nutritional reasons but also because pulse crops add nitrogen to the soil at no cost, it said as the country has a major shortage of pulses.
Gainful employment is needed by the rural poor and this labour could be directed towards infrastructure improvements including maintenance and repair of irrigation infrastructure, river bank protection works in their home areas and development of new lands in the south, the report suggested.
A FAO/WFP joint mission on crop and food supply to Bangladesh has found that the agricultural credit for farmers to buy the best seeds, fertilisers and other inputs is not timely and easily available to many farmers and is very expensive in some areas.
"Credit accessibility should be at the door steps of the farmers at low interest rates preferably by private bankers without collateral," it said suggesting that some means must be found to address this problem effectively and provide farmer-centred credit on a sustainable basis.
The Mission identified an imbalance in the use of fertilisers by the farmers. "Urea being over-used and Phosphate and Potash being under-used, the imbalance needs to be addressed effectively for crops to receive the correct amount of nutrients at the right time and in the correct amounts," said the Mission Report prepared last August.
Given the international fertiliser market situation, state-to-state trade currently being promoted by the government seems to be a good initiative in the short run, the report prepared by the Food and Agriculture Organisation (FAO) and the World Food Programme (WFP) of the United Nations said. The Mission report also said sustainability and profitability of domestic production as well as liberalisation of distribution are issues for the medium term.
In its recommendation of Agriculture Policy, the Mission said more resources need to be invested in seeds to develop superior rice varieties for specific environments, including hybrids, salt-tolerant varieties high-value specialty rice varieties for export and possibly higher yielding types of floating rice. The possibility of using GMO techniques to develop salt, drought and submergence-tolerant varieties of rice and other crops needs to be properly investigated through public sector institutions and the appropriate policy implemented. Farmers should also be encouraged to use certified seed in order to produce higher yields from their very small plots. Seed quality inspection by the government needs to be improved, it added.
There is a lack of farmers' organisation, the report said adding that farmers, particularly marginal farmers and sharecroppers, are not organised into an effective economic lobby to look after their economic interests and so have to sell at the lowest prices at harvest.
Incentives aimed at increasing pulse crop production should be expanded, not only for nutritional reasons but also because pulse crops add nitrogen to the soil at no cost, it said as the country has a major shortage of pulses.
Gainful employment is needed by the rural poor and this labour could be directed towards infrastructure improvements including maintenance and repair of irrigation infrastructure, river bank protection works in their home areas and development of new lands in the south, the report suggested.