The government has worked out an action plan for 2022-23 fiscal for the agricultural sector to ensure food security as the world faces pressure in food production due to the Covid-19 pandemic and the Russia-Ukraine war.
The plan has been worked out in line with the National Agriculture Policy 2018, Agricultural Extension Policy 2020 and the eighth Five Year Plan, according to an official document.
The main aspects of this action plan are to ensure the country’s food security through increased production of all types of crops including paddy and maize, innovate adverse environment-tolerant crop variety and technology and roll it out quickly to develop and enhance the quality of their seeds using biotechnology, said the document obtained by UNB this week.
The document highlighted optimum use of surface water and solar-powered irrigation, promotion of the production and application of organic fertilizers to safeguard soil health and issuing smart cards to all farmers in the action plan.
It said that the action plan includes the prediction of weather through climate-smart agriculture and bolstering e-agriculture activities.
Besides, in the just-started fiscal year, the government will execute actions such as development assistance (subsidies) to keep agricultural input prices with fertilizer and seeds as low as possible at the farmer's level.
It will also make available agricultural machinery to the farmers in order to mechanize agriculture, extend “Synchronised Cultivation” and collaborate in the production, storage and marketing of a variety of vegetables and fruits, including summer onions and tomatoes.
As per the document, the government is providing high subsidies on agricultural machinery and fertilizers.
It said that Russia and Ukraine together play a dominant role in the global fertilizer supply chain. So, the fertilizer prices increased substantially in the international market because of the Russia-Ukraine crisis. Despite the fact that fertilizer import prices have risen.
But the government has not increased prices in the domestic market.
In lieu of price increment, it has prioritized farmer welfare by expanding fertilizer subsidies.
The entire subsidy for fertilizers was estimated at Tk9,200 crore in the budget for the 2021-2022 fiscal.
However, compared to that of May 2021, international prices in May 2022 for TSP, DAP, and MOP fertilizers have gone up by 57%, 47% and 177% respectively.
Under the circumstances, the overall subsidy in 2021-2022 fiscal for all types of fertilizer amounts to around Tk12,000 crore.
The government will provide Tk16,000 crore as a subsidy in the running 2022-23 fiscal year.
In addition to providing subsidies to the agriculture sector, the government is offering incentives and rehabilitation aid to enhance productivity.
Besides, the document said, a 20% cash incentive for exports of agricultural products and a 20% rebate on electricity bills is provided for the electricity use in irrigation pumps.
The government will continue disbursement of special agricultural credit at a concessional interest rate of 4% for cultivating 24 crops including pulses, oil, spices, and maize in the running financial year.
For the purpose of investment in the agriculture sector, Bangladesh Bank adopts agriculture and rural credit policies and initiatives each year.
A total of Tk26,000 crore agriculture and the rural loan was disbursed to 3.055 million small and marginalized farmers in the fiscal year 2020-2021. In response to the pandemic, the government has lowered the interest rate on agricultural loans from 9% to 4% and allocated funds amounting to Tk19,500 crore as agricultural loans with a 4% concessional interest rate.
In addition to providing subsidies to the agriculture sector, the government is offering incentives and rehabilitation aid to enhance productivity.
Besides, the document mentioned, that a 20% cash incentive for exports of agricultural
products and a 20% rebate on electricity bills is provided for the electricity use in irrigation pumps.
The government will continue disbursement of special agricultural credit at a concessional interest rate of 4% for cultivating 24 crops including pulses, oil, spices, and maize in the running financial year.
