Production of food grains, vegetables, cash crops and fruits increased notably in the outgoing fiscal year (FY '15), but farmers incurred losses.
The fall in prices of some produce, two spells of flood and the political turmoil during the third quarter (January-March) of the current fiscal caused the heavy losses to the farmers, according to experts.
In such a situation the experts said the government should provide farmers with direct cash incentive to minimise their woes.
The suggestion came as the farmers were not getting any direct cash incentives while the official data with the ministry of agriculture (MoA) indicates that Tk 15 billion (1,500 crore) out of the Tk 90 billion farm subsidy is being saved in the current fiscal thanks to lower prices of fertilisers in the global market.
Political turmoil during the third quarter (January-March) of the current fiscal year and the import policy were blamed for the sufferings of the farmers.
Production of major crops, including rice, wheat, jute, potato, vegetables, maize, onion and fruits, increased notably in the current fiscal despite two spells of flood in the August-September period and the political upheavals during January-March last.
Rice production increased by 0.12 million (120 thousand) tonnes during the Aman and Aus seasons in the FY '15 compared to that of the FY '14, Bangladesh Bureau of Statistics (BBS) data showed.
The Aman and Aus production was recorded at 13.2 million (132 lakh) tonnes and 2.328 million tonnes respectively.
Boro production is likely to stand at 19.1 million tonnes in the current FY as per the primary projection of the Department of Agriculture Extension (DAE).
The BBS and Export Promotion Bureau (EPB) data showed jute saw a bumper production of 7.6 million bales and exports from the jute sector also achieved more than 7.0 per cent growth in the July-April period of FY '15, when the overall shipment growth was less than 2.5 per cent.
Wheat production is likely to be 1.4 million tonnes while the ongoing maize harvest is indicating a bumper output, according to the DAE.
Vegetable production is also expected to hit a record in the current FY as the acreage increased by nearly 2.0 per cent, data of the horticulture wing under the DAE showed.
The DAE is also expecting a bumper output of potato at 9.0 million tonnes in the FY '15.
"The farmers have contributed to food autarky in the country but they are getting nothing in return," said Subal Sarker, secretary of Bangladesh Bhoomiheen Samity, an organisation for farmers, while talking to the FE.
He said potato prices dropped to Tk 1.5-2 per kg in the January-February period, for which small farmers incurred a loss of at least Tk 3,000 per bigha (33 decimals of land).
Wheat farmers, who made handsome profits in the FY '14, incurred losses in the current FY, although the government was buying nearly 10 per cent of the total produce, he said.
Political high-ups and their allied millers had been eating up all the benefits of the government's wheat, rice and paddy procurement drive, he said.
Farm economist Prof Gazi M Jalil said 1.6 million farmers incurred heavy losses in the Aus and Aman seasons due to floods during August-September, but none was compensated.
In the last Aman season the government supplied the African Nerica variety of rice to flood-hit farmers, but they witnessed a fall in output by cultivating that variety, he said.
He also said farmers, their representatives, lawmakers, food and agriculture ministries, economists and media all raised their voice demanding restriction of rice import during January-February of the current year, but the decision came in May last when paddy prices already hit the three-year low.
He said the government should give cash subsidy to the farmers who incurred losses during the Boro season from the allocation in the current fiscal year.
However, the government has remained very stingy in giving farmers cash subsidy since 2010.
In last six years (FY '10 to FY '15) the farmers got no cash subsidy. Prices of fertilisers also remained unchanged for the last one year in Bangladesh, when the prices of the items declined significantly in the global market.
An official at the Ministry of Agriculture (MoA) told the FE that over Tk 56.25 billion had been spent since May last out of the Tk 90 billion subsidies.
Requesting not to be named, a senior official said the total expenditure would not cross Tk 75.0 billion by the end of the FY '15.
He said minimum Tk 15 billion might be saved thanks to lower prices of fertilisers including Urea, TSP and MOP in the global market.
Economist Dr A K Enamul Haque said besides indirect subsidies, which are given for fertilisers and electricity, direct subsidy should be provided to the farmers.
"Farmers achieved tremendous success in last one decade as rice saw a surplus yield, with wheat, maize, vegetables, potato, pulses, onion, oilseed and jute production hitting new records," he said.
"But the government's role is not significant compared to the farmers' achievements," he said.
CPD (Centre for Policy Dialogue) additional director Dr Khondaker Golam Moazzem told the FE that a National Subsidy Policy should be introduced. "This comprehensive policy will ensure allocation efficiency and distributive equity," he said.
"A Fair Price Commission (FPC) should also be formed which will help ensure price incentive (profitable) for farmers," he said.
He said apart from food grains, the government should think about how subsidy should be provided for cash crops like jute, vegetables, potato, cotton, sunflower, soybean, spices.
Farm economist Golam Hafiz Kennedy said agriculture subsidies in developed countries increase gradually parallel to the plunging trend of farm sector's share of their economies.
The challenge of the 21st century is to keep farmers stuck to agriculture as there are many sectors available now where everyday hundreds of farmers are shifting to.
"Ensuring profitable price and giving logical subsidies are the only tools to keep them stuck to farming," he commented.
However, subsidy in agriculture in terms of total GDP and budgetary allocation has been declining over the last few years in the country, according to the MoA.
Such subsidy in the FY '13 was 6.34 per cent against the total budgetary allocation. It reduced to 4.04 per cent in FY '14 and 3.6 per cent in FY '15. The figure may be fixed at only 3.05 per cent in the upcoming FY, the MoA data shows.
tonmoy.wardad@gmail.com
Losses wipe smile off farmers\\\' faces
Yasir Wardad | Published: June 06, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
Share if you like