Ensuring fool proof fertiliser distribution
Saturday, 8 March 2008
Syed Jamaluddin
THE target for production of boro crop is logically higher this year in view of substantial food shortage caused by floods and cyclone. But news of fertiliser crisis is being received from different parts of the country. If it is not possible to control this situation, it may not be possible to achieve the production target. Boro is more dependent on the supply of inputs compared to Aman. In order to compensate the loss of Aman, the farmers have shown enthusiasm to cultivate boro in larger areas. The demand for fertiliser has, therefore, increased. The government has also taken the initiative for increasing the availability of fertiliser. There is considerable procurement from KAFCO. Import of fertiliser to meet the shortfall is also satisfactory. It is unfortunate that even after all these efforts, farmers are not getting adequate supply of fertiliser. It also happened last year.
Farmers are supposed to get fertiliser at reduced prices but this is not happening. There are cases of sale of adulterated fertiliser. There are doubts that the farmers may not have been able to collect standard seeds. Newspapers are reporting about fertiliser shortage.
There is no alternative to use of balanced fertiliser in increasing boro production. Farmers should be made aware of this implication. Adulteration will spread if smuggling can not be controlled. Management of distribution is now the key problem.
Smuggling outside Bangladesh and faulty distribution are making the fertiliser distribution complex. The lack of coordination among the government agencies is also adding to the problem. Efforts to make the distribution normal through production and import is not producing the desired effect at the field level. In this high season of boro-crop, the farmers are not getting adequate supply of fertiliser. They are buying fertiliser from the black market.
Current boro season is the only hope after two floods and one devastating cyclone. This year everybody is looking for bumper boro crop. But farmers are frustrated for not getting adequate supply. Fertiliser distribution deserves top priority.
This time boro will be cultivated in 4.5 million (45 lakh) hectares. This is 50,000 hectares more than previous year. Boro season needs 1.5 million (15 lakh) tons of fertiliser. This amount of fertiliser has to be distributed among the farmers properly in order to create the maximum impact.
The government is giving subsidy at the rate of Taka 20 per kg. Annual subsidy comes to Tk. 40 billion (4000 crore). 5000 dealers and 11,000 agents are engaged in distribution yet the farmers are not getting the desired help. Domination of middlemen engaged in the trade is mainly responsible for crisis in distribution. Prices of fertiliser are much higher in India and Myanmar. Therefore, smuggling of fertiliser has become attractive. Corrupt dealers are smuggling fertiliser.
Instead of fertiliser reaching the farmers, fertiliser is going on the other side of the border. It is said that production and import are normal but distribution is facing problem. In some districts the supply is half or one third. Boro cultivation is likely to be hampered seriously for want of fertiliser. Farmers are buying fertiliser at a high price. They are moving from one place to another in search of fertiliser.
The government has been spending a large amount of money to subsidise farming activities. This is for motivating the farmers for higher production, boosting agricultural productivity, alleviating poverty and hardship. But the situation is different on the ground level. Farmers have been complaining for some years in succession that they see no benefit arising from operation of the subsidies in the form of agri-inputs at reasonable prices. They do not get sufficient quantity of fertiliser at fair prices after long hours of queuing up in the shops of the dealers. The same applies to diesel to run irrigation pumps. The situation in respect of pesticides and seeds is no better.
The inputs are available in black market and can be obtained at cut throat prices. Under these conditions, the farmers are losing incentives for production. Gap between targeted production and actual yields will lead to large-scale imports. This development is due to man-made factor, which has been making farming more inefficient. The government is providing subsidy to fertiliser and fuel oils. This is specially meant to help the farmers for maintaining agricultural productivity on the high side. But fertiliser and diesel are smuggled out to India and Myanmar where the price of these commodities is substantially higher. It has not been possible to control smuggling effectively. Smuggling is going on even now. The law enforcing agencies do not appear to be fully successful in applying their strength to control smuggling. If it is not possible to control smuggling, it is necessary to find out other means. Prices of these inputs may be increased to make them unattractive for smuggling. Farmers may be compensated through some other mechanism. This has to be worked out. Something has to be done to resolve the issue; otherwise, our purpose of subsidising the farmers will be defeated.
Different Bangladeshi goods including fertiliser are reportedly being smuggled to neighbouring India and Myanmar through the bordering areas of the Chittagong Hill Tracts (CHT) and Teknaf. At the same time, the Indian goods are also being smuggled into the bazars of hilly region and Cox's Bazar which are flooded with smuggled goods. Smuggling in the border areas is quite common.
Meanwhile, the BDR personnel have been advised to remain alert so that no local products including fertiliser can be trafficked to the neighbouring countries through border routes. With rise in the price of fertiliser in India and Myanmar, smugglers' syndicates became very active and trafficked the very essential item of cultivation to Myanmar and the Indian states of Mizoram and Tripura. Higher prices in India and Myanmar will surely lure the smugglers to carry out their activations.
Besides fertiliser, other Bangladeshi goods are also being trafficked. These are cement, garments, dry fish, pulse and other goods. On the other hand, different Indian goods like imitation items for use by women, cosmetics, stationery goods, sari, steel products etc., are arriving in Bangladesh territory through the bordering areas of the country. The case of fertiliser is different from other items because fertiliser is vitally important for raising agriculture production and meeting the food shortage. There should be no scope for compromise on the matter of proper distribution of fertiliser among the farmers. Prevention of smuggling of fertiliser must be at the centre of policy making and implementation. We have to be successful in stopping smuggling of fertiliser outside Bangladesh.
(The writer is an economist
as well as a columnist)
THE target for production of boro crop is logically higher this year in view of substantial food shortage caused by floods and cyclone. But news of fertiliser crisis is being received from different parts of the country. If it is not possible to control this situation, it may not be possible to achieve the production target. Boro is more dependent on the supply of inputs compared to Aman. In order to compensate the loss of Aman, the farmers have shown enthusiasm to cultivate boro in larger areas. The demand for fertiliser has, therefore, increased. The government has also taken the initiative for increasing the availability of fertiliser. There is considerable procurement from KAFCO. Import of fertiliser to meet the shortfall is also satisfactory. It is unfortunate that even after all these efforts, farmers are not getting adequate supply of fertiliser. It also happened last year.
Farmers are supposed to get fertiliser at reduced prices but this is not happening. There are cases of sale of adulterated fertiliser. There are doubts that the farmers may not have been able to collect standard seeds. Newspapers are reporting about fertiliser shortage.
There is no alternative to use of balanced fertiliser in increasing boro production. Farmers should be made aware of this implication. Adulteration will spread if smuggling can not be controlled. Management of distribution is now the key problem.
Smuggling outside Bangladesh and faulty distribution are making the fertiliser distribution complex. The lack of coordination among the government agencies is also adding to the problem. Efforts to make the distribution normal through production and import is not producing the desired effect at the field level. In this high season of boro-crop, the farmers are not getting adequate supply of fertiliser. They are buying fertiliser from the black market.
Current boro season is the only hope after two floods and one devastating cyclone. This year everybody is looking for bumper boro crop. But farmers are frustrated for not getting adequate supply. Fertiliser distribution deserves top priority.
This time boro will be cultivated in 4.5 million (45 lakh) hectares. This is 50,000 hectares more than previous year. Boro season needs 1.5 million (15 lakh) tons of fertiliser. This amount of fertiliser has to be distributed among the farmers properly in order to create the maximum impact.
The government is giving subsidy at the rate of Taka 20 per kg. Annual subsidy comes to Tk. 40 billion (4000 crore). 5000 dealers and 11,000 agents are engaged in distribution yet the farmers are not getting the desired help. Domination of middlemen engaged in the trade is mainly responsible for crisis in distribution. Prices of fertiliser are much higher in India and Myanmar. Therefore, smuggling of fertiliser has become attractive. Corrupt dealers are smuggling fertiliser.
Instead of fertiliser reaching the farmers, fertiliser is going on the other side of the border. It is said that production and import are normal but distribution is facing problem. In some districts the supply is half or one third. Boro cultivation is likely to be hampered seriously for want of fertiliser. Farmers are buying fertiliser at a high price. They are moving from one place to another in search of fertiliser.
The government has been spending a large amount of money to subsidise farming activities. This is for motivating the farmers for higher production, boosting agricultural productivity, alleviating poverty and hardship. But the situation is different on the ground level. Farmers have been complaining for some years in succession that they see no benefit arising from operation of the subsidies in the form of agri-inputs at reasonable prices. They do not get sufficient quantity of fertiliser at fair prices after long hours of queuing up in the shops of the dealers. The same applies to diesel to run irrigation pumps. The situation in respect of pesticides and seeds is no better.
The inputs are available in black market and can be obtained at cut throat prices. Under these conditions, the farmers are losing incentives for production. Gap between targeted production and actual yields will lead to large-scale imports. This development is due to man-made factor, which has been making farming more inefficient. The government is providing subsidy to fertiliser and fuel oils. This is specially meant to help the farmers for maintaining agricultural productivity on the high side. But fertiliser and diesel are smuggled out to India and Myanmar where the price of these commodities is substantially higher. It has not been possible to control smuggling effectively. Smuggling is going on even now. The law enforcing agencies do not appear to be fully successful in applying their strength to control smuggling. If it is not possible to control smuggling, it is necessary to find out other means. Prices of these inputs may be increased to make them unattractive for smuggling. Farmers may be compensated through some other mechanism. This has to be worked out. Something has to be done to resolve the issue; otherwise, our purpose of subsidising the farmers will be defeated.
Different Bangladeshi goods including fertiliser are reportedly being smuggled to neighbouring India and Myanmar through the bordering areas of the Chittagong Hill Tracts (CHT) and Teknaf. At the same time, the Indian goods are also being smuggled into the bazars of hilly region and Cox's Bazar which are flooded with smuggled goods. Smuggling in the border areas is quite common.
Meanwhile, the BDR personnel have been advised to remain alert so that no local products including fertiliser can be trafficked to the neighbouring countries through border routes. With rise in the price of fertiliser in India and Myanmar, smugglers' syndicates became very active and trafficked the very essential item of cultivation to Myanmar and the Indian states of Mizoram and Tripura. Higher prices in India and Myanmar will surely lure the smugglers to carry out their activations.
Besides fertiliser, other Bangladeshi goods are also being trafficked. These are cement, garments, dry fish, pulse and other goods. On the other hand, different Indian goods like imitation items for use by women, cosmetics, stationery goods, sari, steel products etc., are arriving in Bangladesh territory through the bordering areas of the country. The case of fertiliser is different from other items because fertiliser is vitally important for raising agriculture production and meeting the food shortage. There should be no scope for compromise on the matter of proper distribution of fertiliser among the farmers. Prevention of smuggling of fertiliser must be at the centre of policy making and implementation. We have to be successful in stopping smuggling of fertiliser outside Bangladesh.
(The writer is an economist
as well as a columnist)