Farmers, consumers hit hard in 2024

Adverse weather patterns throughout the outgoing 2024, coupled with skyrocketing fertiliser and input prices, have put farmers in a dire situation.
Consumers are also bearing the brunt of these challenges as the soaring US dollar exchange rate drives up import and production costs, reaching food inflation officially above 13.8 per cent, experts and insiders have said.
Experts predict that this trend is likely to persist in 2025 as the dollar exchange rate continues to surge while real wage is rising nominally.
The country's northern and northwestern regions experienced a severe drought from March to June, which significantly impacted the production of mango, litchi and other summer fruits.
The production costs for Aus and Boro rice rose sharply, with farmers having to spend 30-50 per cent more on irrigation due to the prolonged dry spell.
"In contrast, July and August brought devastating floods to 15 districts, damaging crops on approximately 0.45 million hectares of land. This dual impact of drought and floods has been a recurring trend over the past five years, severely limiting farmers' income," said farm economist Prof Golam Hafeez Kennedy.
He says that recurring cyclones in the Bay of Bengal have further worsened the situation, causing significant damage for crops in the coastal region.
Prof Kennedy put emphasis on adequate compensation to farmers, as agriculture remains a low-return sector.
Bangladesh Jatiyatabadi Krishak Dal president and agriculturalist Hasan Zafir Tuhin said that fertiliser prices have increased by 20-40 per cent, despite no official price hike by the government.
He has accused unscrupulous dealers and sub-dealers of inflating prices on the pretext of low supply.
Tuhin pointed out that the prices of seeds, irrigation, pesticides and ploughing have increased by 10-15 per cent.
He says potato farmers are forced to buy seed potatoes at Tk 130-140 a kg, compared to Tk 90 last year.
The rising production costs threaten to shrink farmers' profit margins and also may harm consumers, he said.
Poultry, fisheries, and livestock farmers have similarly suffered throughout the year as feed electricity and other input costs rose sharply.
Md Moziball Hoque, a value chain expert, said the surging dollar exchange rate has significantly increased import costs throughout the year.
Despite global wheat prices declining by 12-15 per cent in 2024 compared to that of 2023, Bangladeshi consumers have not benefited due to the rising dollar rate and inadequate market monitoring.
The dollar exchange rate rose from Tk 110 in January to Tk 129 by December, driving up the prices of all imported products.
Mr Hoque said there is urgent need for stricter market monitoring to prevent further price hikes.
Rezaul Karim Chowdhury, climate negotiation expert and founder of Coast Trust, has urged the government to strengthen its mechanisms for assessing and addressing loss and damage caused by extreme weather events linked to global climate change.
He mentioned the UN's loss and damage fund adopted at COP28, which was further expanded at COP29 in Azerbaijan in November, as a potential source of financial relief.
SM Nazer Hossain, vice-president of the Consumers Association of Bangladesh, stressed the importance of government intervention in monitoring and controlling market prices.
He said that rice, edible oil, and other essential commodities have seen unregulated price hikes, calling for stricter check.
Mr Hossain also said that over 42 million people were left in poverty by the previous regime.
There is an urgent need for targeted programmes, including rationing systems, to support the most vulnerable populations, he said.
Experts, however, say following the combined impact of climate shocks, rocketing prices, and weak market monitoring, the country needs immediate and coordinated policy measures to protect both farmers and consumers in 2025.

[email protected]