Production cost of Boro rice to increase significantly

Yasir Wardad Farmers' production cost will increase by around Tk 26.40 billion in the upcoming Boro rice season due to price increase of urea fertiliser and diesel by the government, farmers and officials said. Md Nuruzzaman, owner of five 'done' (30 decimals per 'done') of land in Ramnagar Union in Nilphamari district, meets his demand for irrigation by shallow tube-wells. Talking to the FE over phone, he said it cost him nearly Tk 1450 per 'done' of land in the last Boro season. "The cost was Tk 1200 to Tk 1250 in 2010 and was Tk 800 three years back," he said. "The shallow-pump owners told us that we would have to pay additional Tk 300 to 350 per farmer in the coming Boro season for irrigation as the price of diesel increased by Tk 10 per litre from that of last season," he said. Md Nuruzzaman, while talking on the urea price hike by Tk 8.0 per kg, said, it will cost him additional Tk 300 per 'done' of land as the requirement for a 'done' is 35 to 37 kg. Bangladesh Agricultural Development Corporation (BADC) Chief Engineer of minor irrigation Md Aktar Hossain Khan has told the FE that requirement of diesel and lube oil (mobil) for the 2011-12 FY is 1.529 billion litres and 35.73 million litres respectively for dry season irrigation. He said the requirement of diesel and lube oil has increased by 0.38 per cent and 0.46 per cent respectively in FY 12 compared to FY 11. BADC officials said excluding the operating and maintaining costs, the tubewell operators charge much more than a justifiable cost. According to the BADC rate, the deep tubewell and low-lift pump operators can charge between Tk 1000 and Tk 1500 for providing irrigation to an acre of land. And the irrigation using gravity flow and double-lifting techniques can cost Tk 400 and Tk 200 respectively. Department of Agriculture Extension (DAE) field service wing said the requirement of urea fertiliser is 2.831million tonnes more than that of last year while it takes nearly 1.8 million tonnes of urea only in Boro rice season. A senior official of the DAE said it would cost farmers additional Tk 14.40 billion for urea as the price increased to Tk 20 at retail level from Tk 12 per kg previously. The production cost of Aman rice this year has also increased to Tk 25 per kg, a 13.64 per cent increase compared to that of the last year when it was Tk 22 per kg, DAE said. A high official of the Centre of Environmental and Geographic Information Services (CEGIS) said nearly 1.2 billion litres of diesel are used only in Boro season for irrigation purpose in the country. Taking in hand the account of DAE, BADC and CEGIS, the additional cost for irrigation and fertiliser would be nearly Tk 26.40 billion as the cost of diesel and urea increased by Tk 10 per litre and Tk 8.0 per kg respectively this year. Economists have expressed their concern that the farmers have been deprived of fair price of their produce. Parallel to it the production cost is increasing significantly which would further discourage the farmers to increase production. Agricultural economist and Brac Executive Director Mahbub Hossain commented that the farmers would need no subsidy if they got fair price of their farm produce. Talking to the FE he said the farmers have been deprived of fair price in Boro season and also would incur loss in Aman season if the government did not declare the procurement volume and the price immediately. Economist and former vice-chancellor of Jahangirnagar University Dr Khandker Mustahidur Rahaman said, price debacle of farm products may discourage the farmers to grow rice. Dr Mustahid said: "The government should immediately fix the procurement volume and the price of Aman rice as 30 per cent harvest has already been completed".