Raise budget allocations for agriculture

Economists and agricultural value-chain experts have called for raising allocations for the broader agriculture sector to 9.5 per cent of the national budget, arguing that a sustained investment is essential to fulfill the government's election pledges and ensure sustainable agricultural development.
They have also urged the government to make sure that its election pledges are reflected accordingly in the next budget, especially in respect of ensuring an uninterrupted supply of key agricultural inputs, particularly fertiliser and diesel, for the forthcoming Aman and Boro cropping seasons.
Professor Golam Hafiz Kennedy, an agricultural economist and value-chain expert from Bangladesh Agricultural University (BAU), told the FE that budgetary allocations for agriculture have been declining steadily over the past three years.
"The allocations (for agriculture sector) fell to only 5.9 per cent of the total national budget in the outgoing fiscal year from that of 8.7 per cent in FY2022-23," he said.
"At the same time, the government has announced a wide range of initiatives for the sector, including increasing farmers' incomes, introducing a 'farmer card system', expanding mechanisation and technology adoption, promoting agricultural entrepreneurship, strengthening export processing and marketing systems, addressing climate change impacts, introducing agricultural insurance and establishing cold-chain facilities," he added.
According to the agricultural economist, the broader agriculture sector should receive at least 9.5 per cent of the proposed Tk 9.3 trillion national budget for FY'27 to help meet the government's election commitments.
Such an allocation would amount to approximately Tk 883.5 billion, he mentioned.
Professor Md Wakilur Rahman of BAU said the government aims to ensure support prices for agricultural produce, expand incentives and make credit facilities easier, provide modern technologies and irrigation support, accelerate mechanisation and infrastructure development, and strengthen market linkages to guarantee fair prices for farmers.
"To fulfill such objectives, there is a need to significantly enhance budgetary support for the sector in the coming fiscal year," he said.
Expressing his concern over availability of agricultural inputs, Professor Rahman said the country's urea fertiliser stock might face pressure from August, while supplies of non-urea fertilisers might remain sufficient only until October unless timely imports are ensured.

tonmoy.wardad@gmail.com