Finance Minister AMA Muhith yesterday said the agriculture subsidy would be of Tk90bn in the next fiscal year, up 50% from the outgoing fiscal year’s allocation of Tk60bn.
The government would also introduce a smart card system, particularly for fertiliser, so the real farmers get the benefit of the subsidy, he said. Currently, the government provides diesel subsidy directly to the farmers.
“Agriculture subsidies will not be stopped because it is the future investment for the country,” Muhith told a pre-budget meeting titled “Krishi Budget, Kroshoker Budget (Agriculture Budget, Budget for the Farmers)” at the finance ministry. “It’ll be rationalised and then reduced in next two years.”
Agriculture activist and head of news of Channel I Shykh Seraj placed 58-point demands for farmers to accommodate in the budget for fiscal 2013-14.
In response to a demand for subsidy to the poultry sector, Muhith said that the government would not allocate any amount of the incentives directly to different ministries and divisions because they have failed to utilise the money.
The ministries and divisions will apply for the incentives and the finance division will disburse the money, he said.
He also said that the livestock ministry failed to make policies to take Tk1bn as incentives for the poultry sector.
Rural people want electricity and roads which would be difficult to provide for budget constraint, said the finance minister. The demand of electricity is higher as compared to the generation.
Referring to setting up of fertiliser factories, he said the local entrepreneurs are not interested to invest big amount of money.
Only the government has established fertiliser factories as it setting up a fertiliser factory in Fenchuganj with production capacity of 6500mt, he added.
