Important to keep farmers motivated
Tuesday, 10 January 2012
K Z Mustafa
A reasonable level price of rice has been one of the key factors to enable Bangladesh to become almost self-sufficient in food production. The price factor has encouraged farmers to produce more rice. The government imported only a nominal quantity of rice last year, mainly to boost the food stock. Which now is at a comfortable level, not requiring much additional import for the next few months, unless warranted by extra-ordinary circumstances like serious natural calamity.
However, a deep frustration among the farmers is noted this year because of a sudden fall in prices of rice and a rise in prices of agricultural inputs. Coarse rice was selling around Tk 40/kg last year. It is now available at Tk 24-28/kg (fall of 30-40%) in the rural areas. The urban people, factory workers and day labourers must be happy because of lower rice prices but the farmers fear bad times ahead of them. Not many people realise that the lower price of rice and higher prices of inputs may bring an economic disaster for Bangladesh. A bag of urea weighing 50 kg was available at Tk 595 last year. This has increased by more than 65% to Tk 980 now. The price of diesel increased from Tk 46 per litre to Tk 56 per litre. Higher income from agriculture and higher prices of essential goods pushed up the wages of the agricultural workers by 15-20% this year. The higher costs of inputs and higher labour costs may increase the cost of production of rice by 25-30% during boro and then aman crops.
Many farmers are afraid that they would lose heavily if the price of rice remains at the current level. It is common sense that nobody would like to lose money by producing anything whose cost of production is higher than its sale price.
For many farmers, particularly those who produce surplus rice for sale cultivation of rice has become a losing business and they are thinking of alternative uses of their land. Even if they cultivate their land for production of rice, most farmers would not be able to afford necessary quantities of fertilizers and water to the plants because of higher prices of urea and diesel. In addition, water for irrigation has become scarce due to the falling level of underground water.
Under such circumstances, it has become imperative to adopt and execute innovative policies to keep farmers motivated properly towards higher rice production.
A reasonable level price of rice has been one of the key factors to enable Bangladesh to become almost self-sufficient in food production. The price factor has encouraged farmers to produce more rice. The government imported only a nominal quantity of rice last year, mainly to boost the food stock. Which now is at a comfortable level, not requiring much additional import for the next few months, unless warranted by extra-ordinary circumstances like serious natural calamity.
However, a deep frustration among the farmers is noted this year because of a sudden fall in prices of rice and a rise in prices of agricultural inputs. Coarse rice was selling around Tk 40/kg last year. It is now available at Tk 24-28/kg (fall of 30-40%) in the rural areas. The urban people, factory workers and day labourers must be happy because of lower rice prices but the farmers fear bad times ahead of them. Not many people realise that the lower price of rice and higher prices of inputs may bring an economic disaster for Bangladesh. A bag of urea weighing 50 kg was available at Tk 595 last year. This has increased by more than 65% to Tk 980 now. The price of diesel increased from Tk 46 per litre to Tk 56 per litre. Higher income from agriculture and higher prices of essential goods pushed up the wages of the agricultural workers by 15-20% this year. The higher costs of inputs and higher labour costs may increase the cost of production of rice by 25-30% during boro and then aman crops.
Many farmers are afraid that they would lose heavily if the price of rice remains at the current level. It is common sense that nobody would like to lose money by producing anything whose cost of production is higher than its sale price.
For many farmers, particularly those who produce surplus rice for sale cultivation of rice has become a losing business and they are thinking of alternative uses of their land. Even if they cultivate their land for production of rice, most farmers would not be able to afford necessary quantities of fertilizers and water to the plants because of higher prices of urea and diesel. In addition, water for irrigation has become scarce due to the falling level of underground water.
Under such circumstances, it has become imperative to adopt and execute innovative policies to keep farmers motivated properly towards higher rice production.