• Wednesday, Aug 04, 2021
  • Last Update : 10:14 pm

Agriculture sector allocation sees percentage decrease again in FY20

  • Published at 05:00 pm June 13th, 2019
File photo of farmers harvesting crops Mahmud Hossain Opu/Dhaka Tribune

Experts say the allocation is 'directionless'

Farmers have incurred losses this Boro season due to high production cost. But the proposed budget does not reflect that. 

Even the subsidy remains almost same.    

The agriculture sector has been allocated a lower percentage in the proposed budget for the 2019-20 fiscal year than that of the current fiscal year.

However, the total amount has increased slightly.

Finance Minister Mustafa Kamal proposed Tk14,053 crore for the Ministry of Agriculture, which is 2.68% of the total proposed budget. In the current fiscal year, the sector’s revised budget is Tk12,792 crore; while the proposed budget was Tk13,914 crore. However, the allocation for this sector was at 2.89% of the total budget in the current fiscal year.

In the proposed budget, allocation for subsidies and incentives in the agriculture sector is Tk9,001 crore, which is only Tk1 crore higher than the proposed budget of FY2018-19. 

However, in the revised budget for the current fiscal year, it amounted to Tk8,070 crore.  

Even though Bangladesh has secured fourth position in rice production, and third in vegetable production, most farmers are still suffering. 

This year, the paddy price was around Tk500 per mound. Countrywide, farmers claimed they were selling paddy for  less than their production cost, because of high labour costs, and other expenses. 

This issue was not reflected in the budget speech. In his budget speech, Finance Minister AHM Mustafa Kamal said: “The present government has kept the sales price of fertilizers unchanged in the domestic market, to protect farmers' interests, even though the import price of major chemical fertilizers increased at times. This has indirectly assisted in checking consumer price inflation. The sales price for chemical fertilizers will be kept unchanged in the next fiscal year irrespective of their import costs, and incentives for the agriculture sector will continue.

 “Mechanization of harvesting and the follow up activities will be encouraged, and subsidies will be provided to farmers to buy machinery for this purpose.”

Dr M Asaduzzaman, research director at the Bangladesh Institute of Development Studies said: “How much is allocated and how much subsidies are given are important, but what is more important is how to spend this allocated money. This budget has no directives on that.

“How will the subsidies be disbursed? Will a farmer have the ability to buy a power tiller after receiving a small portion of the total price of a power tiller as subsidy? Probably not. So you have to find a way through which the farmers can capitalize on the subsidy."   

However, in the proposed budget, the Fisheries and Livestock Ministry is to be allocated more than the current year’s - Tk 2,932 crore. In the current fiscal year, the sector’s revised budget is Tk1,782 crore, while the proposed budget is Tk1,868 crore.

Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail