Zillur for sector-wise budget share for agri development
Tuesday, 9 June 2009
FE Report
Former adviser Hussain Zillur Rahman Monday called for specific sector-wise allocation in the upcoming budget for the agricultural development instead of mere general statement that it will get importance.
He was speaking at seminar on 'Impact of Trade Liberalisation on Bangladesh Agriculture: The Cases of Sugarcane and Poultry' at CIRDAP Auditorium in the city.
Unnayan Shamannay organised the seminar in association with CUTS, India.
Speaking as chief guest, Mr Rahman said: "We have to keep in mind that some sectors have progressed due to trade liberalisation."
He said poultry and sugar industries cater to the need of the local market. But they got very little attention from the policy-makers.
"The policy-makers respond to the needs of export-oriented sector much actively. But we do not see such response when it comes to sectors like poultry and sugar.
"We have to provide necessary infrastructure and investment facility to these sectors which meet local demand as well as create employment opportunities."
The former commerce adviser said these sectors had been quite resilient on the face of the global meltdown. "But these sectors do not get facilities in line with the SME policy although they are very much small enterprises."
"There should be specific sector-wise allocations in the upcoming budget for the development of agriculture instead of mere general statement that importance will be provided to the agriculture."
Dr Aiqur Rahman, professor of Department of Economics, North South University, said there had been gross liberalisation in the early '90s.
He particularly admitted that the sugar industry would not be able to meet the 400 tonnes of annual demand where the production stood below half.
Smuggling through borders must be dealt with iron hands to improve the situation, he said.
"Liberalisation must be brought for the survival of the local industries. We must not give in to foreign pressure."
Dr Nazneen Ahmed, research fellow of Bangladesh Institute of Development Studies, refused to blame liberalisation only for the near ruination of poultry and sugar sectors.
She said: "When trade liberalisation occurs many sectors face problems due to adjustment. In that case, we need to look at prospective negative effects to promote development."
She said the poultry industry had been seriously affected due to recent bird flu.
"When we go for trade liberalisation we have to look at governance and capital of some sectors so that they can protect themselves."
"They must be provided with necessary supports such as subsidy and incentives. Otherwise, trade liberalisation will only bring problems."
Keynote presenter Mohammad Abu Eusuf, an economist of Unnayan Shamannay, said liberalisation had both positive and negative impacts. But rash trade policy leads the local industries to the verge of ruination.
He said the poultry industry had started to boom in the early 90s as a sub-sector of the agriculture.
"It has contributed to creating self-employment. But now the sector is under threat for which the farmers blame the trade policy."
According to the farmers, he said: "Inappropriate imposition of duty on poultry feeds import and unrestricted influx of foreign materials have driven the sector to the verge of ruination."
He said in the fiscal year 2007-2008 the government imposed Customs duty on import of poultry materials that was nearly zero even two years ago. This has affected the industry and farming in a severe way.
"Similarly, sugar industry is also on the verge to destruction due to unchecked import from India and failure of sugar management centres to discharge their duty properly."
"The trade policy should be formulated after consultation with the people of the grassroots level," said Eusuf, also an associate professor at Dhaka University said.
He said the policy-makers should not compromise on agriculture. "We have to do what we need to do to protect agriculture to ensure food security."
Poultry farmers, researchers and academicians also spoke on the occasion.
Former adviser Hussain Zillur Rahman Monday called for specific sector-wise allocation in the upcoming budget for the agricultural development instead of mere general statement that it will get importance.
He was speaking at seminar on 'Impact of Trade Liberalisation on Bangladesh Agriculture: The Cases of Sugarcane and Poultry' at CIRDAP Auditorium in the city.
Unnayan Shamannay organised the seminar in association with CUTS, India.
Speaking as chief guest, Mr Rahman said: "We have to keep in mind that some sectors have progressed due to trade liberalisation."
He said poultry and sugar industries cater to the need of the local market. But they got very little attention from the policy-makers.
"The policy-makers respond to the needs of export-oriented sector much actively. But we do not see such response when it comes to sectors like poultry and sugar.
"We have to provide necessary infrastructure and investment facility to these sectors which meet local demand as well as create employment opportunities."
The former commerce adviser said these sectors had been quite resilient on the face of the global meltdown. "But these sectors do not get facilities in line with the SME policy although they are very much small enterprises."
"There should be specific sector-wise allocations in the upcoming budget for the development of agriculture instead of mere general statement that importance will be provided to the agriculture."
Dr Aiqur Rahman, professor of Department of Economics, North South University, said there had been gross liberalisation in the early '90s.
He particularly admitted that the sugar industry would not be able to meet the 400 tonnes of annual demand where the production stood below half.
Smuggling through borders must be dealt with iron hands to improve the situation, he said.
"Liberalisation must be brought for the survival of the local industries. We must not give in to foreign pressure."
Dr Nazneen Ahmed, research fellow of Bangladesh Institute of Development Studies, refused to blame liberalisation only for the near ruination of poultry and sugar sectors.
She said: "When trade liberalisation occurs many sectors face problems due to adjustment. In that case, we need to look at prospective negative effects to promote development."
She said the poultry industry had been seriously affected due to recent bird flu.
"When we go for trade liberalisation we have to look at governance and capital of some sectors so that they can protect themselves."
"They must be provided with necessary supports such as subsidy and incentives. Otherwise, trade liberalisation will only bring problems."
Keynote presenter Mohammad Abu Eusuf, an economist of Unnayan Shamannay, said liberalisation had both positive and negative impacts. But rash trade policy leads the local industries to the verge of ruination.
He said the poultry industry had started to boom in the early 90s as a sub-sector of the agriculture.
"It has contributed to creating self-employment. But now the sector is under threat for which the farmers blame the trade policy."
According to the farmers, he said: "Inappropriate imposition of duty on poultry feeds import and unrestricted influx of foreign materials have driven the sector to the verge of ruination."
He said in the fiscal year 2007-2008 the government imposed Customs duty on import of poultry materials that was nearly zero even two years ago. This has affected the industry and farming in a severe way.
"Similarly, sugar industry is also on the verge to destruction due to unchecked import from India and failure of sugar management centres to discharge their duty properly."
"The trade policy should be formulated after consultation with the people of the grassroots level," said Eusuf, also an associate professor at Dhaka University said.
He said the policy-makers should not compromise on agriculture. "We have to do what we need to do to protect agriculture to ensure food security."
Poultry farmers, researchers and academicians also spoke on the occasion.