High import payments lead to price hike of essentials

High import payments are causing appreciation of dollar against taka, resulting in further price surge of essentials in local market, while odd climatic condition is also posing threat to local agricultural production.
Taking these factors into account, the government should enact its policies to raise productivity through adopting sustainable farm methods, said speakers at a national dialogue - "Agricultural Production in an Odd Climatic Condition: Volatility in the Global Agricultural Commodity Market."
Bangladesh Agricultural Journalist Forum (BAJF) organised the programme at the Krishibid Institution of Bangladesh Convention Hall in the city on Sunday.
They also suggested reducing the huge gap between import and export of agricultural products by enhancing productivity, mechanising agriculture, and ensuring inputs like fertilisers and high-yielding multi-stress-tolerant crop varieties.
Agriculture Minister Dr Muhammad Abdur Razzaque said farm sector needs capacity building for using new generation technologies.
"Capacity of utilising budget is needed before enhancing allocation."
While talking on price volatility, he said: "Wheat price reached US$ 450 from $220 per tonne a year back, while potassium price has reached $1,200 from $300 a tonne."
Expenditure for edible oils fuelled up to $2.5 billion, as the country meets 90 per cent of their demand through import.
The government is handling the issue very seriously and there would be no shortage of food, Mr Razzaque noted.
"Rough weather is also a challenge. Still we are trying to enhance productivity in this climatic condition."
He added that 570 combined harvesters are being used in the haor region to complete harvest quickly, while 77 per cent harvest has been completed in Sunamganj.
Dr Mustafizur Rahman, distinguished fellow of the Centre for Policy Dialogue (CPD), said Bangladesh imports food-grains worth around $10 billion while exports only around $1.0 billion.
"Most of the commodity prices increased in international market, and Bangladesh is feeling the heat of paying a huge amount of dollar due to such trade gap."
Some 41 per cent of labour force is engaged in agriculture that is contributing around 13 per cent of GDP.
"New generation technology is needed to increase productivity to boost export," Dr Rahman opined.
To do this a radical change in budget allocation for agricultural research is needed, he added.
F H Ansarey, president of ACI Agribusiness, said, "A developed variety seed needs 10 years to reach farmers."
In this case he urged coordination among extension officials of both government and private sectors.
Mr Ansarey also focused on investment in food processing industry to reduce post-harvest losses.
He suggested building storage capacity based on public-private partnership (PPP).
Mashrur Arefin, managing director of the City Bank Ltd, said surge in global commodity prices is causing appreciation of dollar against BDT by notable margin.
The condition is still deteriorating, and the government should think seriously how it could make a balance between export and import.
Interest rates against loans have been increased to discourage taking loans. This has been done to take control over monetary inflation.
He also mentioned that the country witnessed 191 incidents of climate-induced disasters in the last few decades.
The government could jointly take initiatives with the banks and insurance companies to enact policies over the issue, he opined.
Fisheries and Livestock Minister S M Rezaul Karim, and Planning Minister M A Mannan also spoke in the dialogue, while Professor Jahangir Alam of Bangladesh Agriculture University presented the keynote.
Prof Dr M A Sattar Mandal, former vice chancellor of BAU, chaired the panel discussion, where FBCCI President Jashim Uddin, former executive chairman of Bangladesh Agricultural Research Council (BARC) Wais Kabir, former director general of Department of Agricultural Extension (DAE) Md Hamidur Rahman, and acting managing director of Green Delta Insurance Co Ltd Syed Moinuddin Ahmed also spoke, among others.

tonmoy.wardad@gmail.com