AS AN agrarian nation, Bangladesh鈥檚 economy is deeply intertwined with the agricultural sector. Agriculture remains the primary source of income for many, with a significant portion of the population depending on it. According to Bangladesh鈥檚 2018 Economic Survey, agriculture employs 40.6 per cent of the workforce and contributes 14.10 per cent to the GDP. While industrial workers can protest for better wages or demand bonuses, farmers rarely voice their struggles, yet they continue to endure hardship, working tirelessly to produce the essential crops that feed the nation.
Our economy is heavily reliant on agriculture, the garment industry and remittances, which all suffered during the Covid pandemic. With the ongoing Russia-Ukraine war and growing concerns about a global food crisis, we must focus on maximising our agricultural potential. Modernising agriculture should be a national priority, as food security is the cornerstone of addressing other economic, political and social issues. Ensuring self-sufficiency in food production is vital for a stable future. In a world that鈥檚 becoming increasingly interconnected, an economy reliant on external sources is both fragile and unstable.
In the 2022鈥�23 financial year, Bangladesh鈥檚 economic growth slowed to 5.78 per cent, mainly due to weak performance in manufacturing and services. Agriculture, however, provided some stability, with growth in the sector reaching 3.37 per cent. The growth was supported by bumper crops and favourable weather conditions. Despite a slowdown in manufacturing and services, agriculture stood strong, contributing to stability in the face of challenges like forex volatility, import restrictions and rising inflation. However, concerns persist over the rising prices of agricultural products, which may undermine the reported growth. To ensure continued growth, stabilising the forex market and easing import restrictions is crucial.
The 2024鈥�25 financial year has broaught further challenges. The government has cut subsidies by Tk 27,000 crore, affecting critical agricultural inputs like fertiliser, electricity and the open market sales programme for the poor. With inflation exceeding 10 per cent, farmers are facing even more strain and reductions in subsidies for low-cost food distribution under the OMS programme add to their woes. These cuts come at a time when increased subsidies are necessary to counter the rising costs of essential goods.
Despite ongoing challenges such as population growth, climate change and global crises, agriculture has remained resilient. It has provided food security, reduced poverty and employed 40 per cent of the labour force. Sub-sectors like fisheries, poultry, livestock and agro-industries have flourished, bolstered by research institutions and government support.
However, the agricultural sector faces increasing threats from climate change, including flooding, salinity intrusion and erosion. Despite these risks, the country has managed to implement holistic strategies that support smallholder farmers and improve food security. Initiatives by organizations like BRAC have empowered farmers by providing high-yield and climate-resilient seeds, access to microfinance, crop insurance and localised agricultural knowledge. These efforts have led to greater crop diversification and improved market linkages, enhancing farmers鈥� incomes. Yet, as climate change is projected to reduce global food production by 30 per cent by 2050, combined efforts from the state, private sector and civil society are essential to sustaining farmers鈥� livelihoods and ensuring food security in an increasingly unpredictable world.
In Bangladesh, farmers face significant economic and social challenges. Often earning minimal profits, they find themselves at the mercy of middlemen who reap substantial benefits. Unlike in many developed countries, where farming is respected, agriculture in Bangladesh is often undervalued. Deep-rooted biases, partly from colonial-era attitudes that glorified office jobs, persist, leading to the social ridicule of farmers. Changing societal perceptions could encourage educated individuals to view farming as a respectable and viable profession, acknowledging its crucial role in survival and national well-being.
To ensure the sustainability of Bangladesh鈥檚 agricultural sector, we need innovations in mechanisation, ICT and climate-resilient farming practices. Policymakers must ensure fair prices for farmers, invest in education and training and incorporate advanced technologies aligned with the goals of the Fourth Industrial Revolution. Farmers deserve not just recognition but also strong, actionable policies that guarantee a secure and prosperous future for agriculture.
Despite record harvests of winter vegetables, farmers often don鈥檛 receive fair prices. In Dhaka, consumers pay Tk 40 for a piece of cauliflower, but farmers sell it for Tk 2鈥�5, sometimes failing to even cover production costs. In some cases, farmers end up feeding unsold vegetables to cattle. These problems recur almost every season, but preventive measures are rarely in place. The plight of farmers often goes unnoticed by policymakers. Ironically, when natural disasters disrupt the supply, vegetable prices in Dhaka soar, with many vegetables exceeding Tk 100 taka per kilogram. As produce changes hands multiple times, the price increases, benefiting middlemen while leaving both farmers and consumers at a disadvantage.
The wholesale market at Tarakandi in Pakundia, Kishoreganj, is, for example, just 14 kilometres from city retail markets, yet the price of vegetables increases by Tk 30鈥�40 taka a kilogram during this short journey. Regular market monitoring is necessary to address this imbalance. According to the Agricultural Marketing Act, retail sellers are allowed a 30 per cent profit margin, but violations are frequent, especially with middlemen. Farmers are often forced to sell their produce immediately due to limited storage facilities, exacerbating their financial strain. Providing proper storage options for farmers would help them receive fair prices and ensure equity within the supply chain.
Agricultural subsidies play a crucial role in supporting farmers worldwide, with various countries adopting diverse strategies tailored to their unique economic and social contexts. Bangladesh can draw valuable lessons from both neighbouring Asian nations and developed countries to enhance its agricultural subsidy framework.
China鈥檚 approach: China has developed a policy framework for agricultural subsidies that aligns with World Trade Organisation rules and addresses the nation鈥檚 specific needs. The core of this framework includes direct payments to farmers, subsidies for improved seed varieties and support for agricultural machinery purchases. These measures aim to boost productivity and ensure food security.
India鈥檚 strategy: India provides substantial subsidies for fertilisers, electricity and irrigation to reduce input costs for farmers. Additionally, the government implements minimum support prices for various crops, ensuring farmers receive a guaranteed price, thereby protecting them from market volatility.
Developed countries鈥� policies: In developed nations, agricultural subsidies often focus on income support and environmental sustainability. For instance, the European Union鈥檚 Common Agricultural Policy offers direct payments to farmers, linking a portion of these payments to environmentally friendly farming practices. Similarly, the United States provides subsidies through programmes that support farm income, conservation efforts and crop insurance.
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Recommendations for Bangladesh:
Diversified subsidy programmes: Implement subsidies that reduce input costs, such as for seeds, fertilisers and machinery, while also offering direct income support to stabilise farmers鈥� earnings.
Minimum support prices: Establish MSPs for key crops to ensure farmers receive fair prices, safeguarding them against market fluctuations.
Investment in storage and infrastructure: Develop storage facilities and improve supply chain infrastructure to reduce post-harvest losses and enhance market access.
Environmental incentives: Introduce subsidies that encourage sustainable farming practices, promoting long-term agricultural productivity and environmental health.
Compliance with WTO rules: Ensure that subsidy programs adhere to WTO guidelines to maintain fair trade practices and avoid potential disputes.
By adopting a comprehensive and balanced approach, Bangladesh can strengthen its agricultural sector, support farmers effectively and promote sustainable development.
The costs of fertilisers, seeds and pesticides have increased significantly. Farmers cannot recover even the production costs, let alone make a profit. Subsidies must be arranged for farmers in such scenarios. Furthermore, in some areas, farmers are reportedly being harmed under the guise of providing modern machinery. Strict monitoring is needed in these cases. Identifying affected farmers and offering them subsidies and incentives at the upazila level is essential. Otherwise, there is a risk of farmers gradually turning away from agriculture, which would be detrimental to the nation.
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Nafew Sajed Joy is a writer and researcher.
