[🇧🇩] Agriculture in Bangladesh

[Saif]

Flood-hit farmers need proper support

Govt must ensure swift response based on their needs

www.thedailystar.net

Flood-hit farmers need proper support
Govt must ensure swift response based on their needs

As floodwaters begin to recede in the Mymensingh, Netrokona and Sherpur region, the scale of the destruction caused by the recent flash floods is gradually becoming apparent. Current estimates suggest that Aman crops over 83,000 hectares of land have been totally or partially ruined, impacting around 322,000 farmers. Moreover, a large number of fish farms have been washed away. In Sherpur alone, floods have washed away the fish from 7,366 ponds, affecting around 4,500 farmers. While a comprehensive assessment of the damage done to agriculture, fish farms, livestock and properties can only be made after the water fully recedes, it is already clear that recovery will be an immense challenge for this agriculturally crucial region.

Farmers whose crops have been destroyed have an uncertain future awaiting them. The damage to this season's Aman paddy is beyond repair, as the window for new cultivation has already passed. How will these farmers survive? Or, consider the case of fish farmers like Mohammad Ali, who had taken the lease of an acre of land to set up a fish farm and invested nearly Tk 7 lakh by taking a bank loan. He and others like him have not only lost their livelihoods but are now saddled with a crushing debt.

While the flood situation in these districts has improved to some extent over the last few days, many villages in low-lying areas still remain inundated. According to the local administration, about 13,000 families are still trapped by water. These people, too, face an uncertain future, not knowing what awaits them when the waters finally recede.

Under the circumstances, the government must urgently come up with a robust post-flood recovery plan for all the affected areas, while continuing its relief efforts by providing food, medicine and other essential supplies to the victims. Understandably, livelihood rehabilitation, particularly for farmers, will be one of the government's biggest challenges as they need to be given an alternative choice of crops or vegetables to cultivate since the Aman season is already over. To this end, the Department of Agricultural Extension should swiftly assess the conditions on the ground and identify suitable crops and vegetables for the affected areas. Immediate distribution of crop saplings, vegetable seeds, fertilisers, and other necessary inputs is also essential.

Those who cannot go back to their previous livelihoods must be given alternative means of earning a living. This is a huge task requiring strong coordination among all the relevant government agencies. We hope that the government will rise to the challenge, supported by NGOs and philanthropic organisations, to meet the post-flood needs of the affected communities.​

 

[Saif]

Bangladesh’s cotton use forecast revised upwards

Bangladesh’s cotton consumption is expected to rise marginally to 78 lakh bales in marketing year 2024-25, which began in August, according to a US Department of Agriculture (USDA) report published on Friday.

www.thedailystar.net

Bangladesh’s cotton use forecast revised upwards

Bangladesh's cotton consumption is expected to rise marginally to 78 lakh bales in marketing year 2024-25, which began in August, according to a US Department of Agriculture (USDA) report published on Friday.

The US agency, in its initial projection in April this year, estimated cotton consumption in Bangladesh, the world's second-biggest clothing factory, at 80 lakh bales.

One bale equals 480 pounds or 218 kilogrammes (kg).

It revised the projection downwards in August and September before raising the forecast in its latest update.

Although the USDA did not explain the reasons behind the hike in its latest report, titled "Cotton: World Markets and Trade", industry stakeholders said the overall use of cotton by local textile mills may be higher this year.

"Business was unfavourable for various reasons, including the gas crisis and hike in its prices alongside unavailability of US dollars to open letters of credit (LCs) for cotton imports. Now, we can open LCs," said A Matin Chowdhury, managing director of New Asia Group, a vertically integrated apparel manufacturer.

Import and consumption of cotton yarn also grew last year.

It appears that local production of yarn will increase this year as cotton prices are falling in the international market— A Matin Chowdhury Managing Director of New Asia Group.

"It appears that local production of yarn will increase this year," he said, citing falling prices of cotton on the international market.

Cotton prices declined 15 percent year-on-year to $1.79 per kilogramme (kg) in July-September from $2.11 a year ago, according to the World Bank Commodities Price Data (The Pink Sheet).

"But a lot depends on gas and electricity supply," he said.

Insiders said the domestic market had been sluggish in July and August, with demand only starting to pick up by the end of September.

"The overall situation has improved to some extent. But spinners cannot run operations properly due to the gas and electricity crises," an official of the Bangladesh Textile Mills Association (BTMA) said.

Mills run at over 80 percent of their capacity when the energy supply is adequate.

"But they are currently running at half of their capacity because of the gas and electricity crises," the official added.

The USDA said Bangladesh's domestic use of cotton hit 88 lakh bales in MY22 to feed the demand for export-oriented knitwear makers, the main export-earning sector.

However, cotton consumption began declining in subsequent years and overall use stood at 77.5 lakh bales in MY24.

The country is highly reliant on imports because of its low domestic production of cotton, which amounts to around 1.5 lakh bales annually.

Local millers import a good chunk from countries in West Africa followed by India, Brazil, the United States and Australia, according to the USDA.

The US agency estimated Bangladesh's imports of cotton for MY25 at 77 lakh bales -- around 2 percent higher than the 75.75 lakh bales imported the previous year.​

 

[Bilal9]

Agri product exports growing slowly. Here’s why

Even though Bangladesh is an agricultural country, its agricultural product exports grew at a slower pace compared to other goods over the past decade due to a lack of policy support, high costs and the absence of good agricultural practices.

www.thedailystar.net

Agri product exports growing slower than others. Here’s why

View attachment 7839

Even though Bangladesh is an agricultural country, its agricultural product exports grew at a slower pace compared to other goods over the past decade due to a lack of policy support, high costs and the absence of good agricultural practices.

The country's annual export earnings soared 114 percent to $50 billion in fiscal year 2022-23 in around a decade.

And while data for the whole of fiscal year 2023-24 is not yet available, it stood at $40 billion in the July-May period, according to data of the Bangladesh Bank.

The country's export of agricultural products was worth $536 million in fiscal year 2012-13 and it rose by 57 percent to $843 million by the end of fiscal year 2022-23.

In the 11 months of the last fiscal year, it was $846 million, the data showed.

And while there are several barriers to exporting agricultural products, the main one is a lack of policy support, said Md Iqtadul Hoque, general secretary of Bangladesh Agro-Processors' Association (BAPA).

For instance, aromatic rice exports were banned over apprehensions that it could put the country's food security at risk. "But this type of rice is not an essential food so it is not linked with food security," he added.

According to the Department of Agricultural Extension (DAE), Bangladesh annually produces up to 19 lakh tonnes of aromatic rice, of which it exports only about 10,000 tonnes.

As such, the government has the scope to earn a huge amount of foreign currency by allowing the export of aromatic rice, said Hoque.

There are many other examples of how policy support is lacking, including a reduction of cash incentives from 20 percent to 15 percent from fiscal year 2024-25, he said.

The high cost of raw materials is another reason that local exporters are lagging in international competition, he said, adding that the price of sugar has more than doubled in Bangladesh compared to India and Pakistan.

The price of wheat is also higher in the country, and sugar and wheat are two major ingredients of juice and snack items. "So how will we compete with others?" he asked.

Container freight costs also rose 4 to 5 times here. Besides, food producers need to import specialised packaging and pay a high duty to this end, which pushes up their input cost, said Hoque.

At present, there are 486 manufacturers of processed agricultural products, of which 241 are exporters while the rest cater to the domestic market.

Bangladesh exports cereal grains, tea, vegetables, tobacco, flowers, fruits, spices, dry food and other processed agricultural products to more than 145 countries.

Although the export earnings of the agricultural sector are not soaring, it is helping to ensure food security while also saving the country's foreign currency by providing import substitutes, Hoque added.

By fiscal year 2022-23, Bangladesh's food crop production had increased by around 38 percent to 467 lakh tonnes, as per data of the finance ministry.

Eleash Mridha, managing director of PRAN Group, said the export of agricultural products dropped in the last two years mainly due to the ban on exporting aromatic rice.

He also blamed high prices of sugar and flour and the rise in freight costs, saying cargo freight costs have not increased over the last couple of years in India and Thailand but it did rise in Bangladesh.

"So, we lag behind in competition," he added.

The Association of Southeast Asian Nations (ASEAN) is a good market for Bangladesh and so, the government could sign a free trade agreement with the ASEAN member countries in order to grab the market, he said.

Bangladesh's agro-processing sector has huge potential as most of the raw materials are locally produced, Mridha said, adding that the demand for their products is also high abroad.

As a result of the revolution in agricultural production, Bangladesh ranks third globally in the production of rice, vegetables, and onions while it is second in jute production, fourth in tea production and seventh in potato and mango cultivation.

Crop production in the country has risen in recent years thanks to farm mechanisation.

For example, around 6 percent of the agricultural land in Barishal has been lost due to urbanisation and other causes between 2014 and 2019. However, rice production in the region has not decreased and instead rose by 1.5 times owing to modern cultivation techniques.

In this situation, the country needs to focus on two things before putting in the effort on exports and securing a good position in global markets, said Md Nazim Uddin, senior scientific officer of Bangladesh Agricultural Research Institute (BARI).

The first is to implement good agricultural practices and the second is to ensure the testing of products in laboratories accredited by the International Organization for Standardization (ISO), he said.

Good agricultural practices encourage moderate use of pesticides, organic and chemical fertilisers, and environment-friendly management of resources, he said.

In implementing these practices, it is important that uniform and correct procedures are adopted all throughout the way. It would ensure consumers' confidence as foreign buyers seek assurance of quality food, said Nazim Uddin.

Apart from Western countries, the Middle East has a huge demand for Bangladeshi products and other Asian countries are also exporting to this market comparatively easily, he said.

Sending agricultural products to the Middle East requires proper certification for ensuring food safety. Sometimes, ultrasonic washing and packaging can improve the quality, he added.

Nazim Uddin also said freight costs and a shortage of space for air cargoare major reasons for the low export of agricultural products.

"There is a huge potential for agricultural exports as the international market is huge," he added.

Data of Bangladesh Investment Development Authority shows that the international agriculture market is projected to reach $19,000 billion with a compound annual growth rate of 9.1 percent by 2027.

Bangladesh's total market size for agricultural products was $47.54 billion till 2022. So, there is a huge potential to grow the industry to capture the market. In this situation, the focus should be on the agro-processing industry, Hoque said.

The Bangladesh Institute of Development Studies, a state-run research firm, also identified in a research paper that policy barriers have a major impact on the export process of fruits and vegetables.

Export expansion and demand from supermarkets is constrained by poor quality of produce and imposition of different sanitary and phytosanitary criteria by importing countries, it said while adding that the high cost of airfreight is another big barrier.

Although the industrial and service sectors grew fast over the past decade, even contributing to export earnings and GDP, employment in the agricultural sector remains the major contributor. This indicates that the agricultural sector can ensure a higher number of jobs.

In fiscal year 2016-17, jobs in the agricultural sector accounted for 41 percent of the total labour force while it rose to 45 percent in 2022.

Interestingly, more women are joining the agriculture sector in Bangladesh as their job opportunities in industries, especially garment factories, have stagnated while men are switching to non-farm sectors.

Of the 31.98 million people employed in agriculture, 18.43 million are female, the data showed.

BAPA's Hoque recommended that they be provided bonded warehouse facility and tax rebates so that they could compete with international competitors.

To increase the contribution of the agricultural sector, he suggested that banks should come forward to provide more loans and the government should promote and facilitate farm mechanisation.

BARI's Uddin recommended focusing on Middle Eastern and Asian countries and following good agricultural practices targeting the Western countries.

He also suggested that contract farming by corporates could be a good way of sending products abroad as they can properly meet the preconditions set by the destination countries.

PRAN's Mridha recommended reducing the duty on sugar and flour used by export-based agro-processing industries.​

Produce exports are being slowed because food processing sector has grown beyond leaps and bounds (of which some are also exported). If Mangos get converted to boxed juice - that is export that occurs.

 

[Saif]

Natural disasters cause colossal farming losses

A lack of insurance protection costs Bangladesh farmers hundreds of millions of dollars in colossal crop losses perennially in onslaughts of climate-related calamities, according to independent findings. Agricultural losses have amounted to an estimated US$700 million over

thefinancialexpress.com.bd

Natural disasters cause colossal farming losses
Subsidised crop insurance seen as an effective tool to help affected farmers
Jasim Uddin Haroon
Published :
Oct 12, 2024 23:43
Updated :
Oct 12, 2024 23:43

A lack of insurance protection costs Bangladesh farmers hundreds of millions of dollars in colossal crop losses perennially in onslaughts of climate-related calamities, according to independent findings.

Agricultural losses have amounted to an estimated US$700 million over the past six years since 2019 due only to nine cyclones and heavy rains, according to data collated by the Ministry of Disaster Management through assessments conducted by officials at all administrative levels-- from the lowest to the highest tiers.

While considering all types of climate-related disasters, they have found agricultural damages significantly higher, with estimates from the Bangladesh Bureau of Statistics (BBS), the country's national statistical organisation, showing average annual losses of nearly $720 million between 2015 and 2020 or around 1.0 per cent of GDP.

These figures underscore severe threat that climate change poses to Bangladesh's agricultural sector, as crop insurance is not widely available for farmers at present.

In 2019, two major meteorological disasters caused agricultural losses amounting to $105.77 million. In 2020, a single disaster resulted in losses of $115.87 million, followed by a disaster in 2021 in sync that caused damages worth $360.35 million. In 2022, one event led to losses of $12.43 million, while in 2023, three major disasters caused damages of $42.45 million. As of 2024, one disaster has inflicted losses totaling $59.37 million.

A significant flood event in several southern districts in August and September 2024 is not included in those numbers.

The disaster ministry does not account for agricultural losses caused by minor events as they assess losses only for major disasters, according to officials familiar with the situation.

However, the estimates from the BBS for 2015-2020, published in May 2022, include losses from not only major disasters like cyclones and floods but also factors such as heavy rainfall, droughts, waterlogging, tidal surges, thunderstorms, landslides, and river erosion.

According to the EM-DAT database, a global disaster database, Bangladesh has experienced 133 meteorological, climatological, and hydrological disasters since 2000. More than half (70) were storms, especially tropical cyclones, followed by floods (41).

Climate experts note that increasingly frequent high temperatures and shorter winters are creating a gap in assessing the full impact of climate-related losses on the country's agriculture employing more than 40 per cent of total workforce.

Dr. Jiban Krishna Biswas, the immediate -past chief of Krishi Gobeshona Foundation, a non-profit organisation supporting sustainable agricultural research and development, told The Financial Express that high temperatures and shorter winters have become common phenomena in Bangladesh.

"Of course, this is due to global warming," the climate researcher, also former director -general of Bangladesh Rice Research Institute (BRRI), stated.

Dr Fazle Rabbi Sadek Ahmed, a climate scientist and Deputy Managing Director of Palli Karma-Sahayak Foundation (PKSF), says: "Farmers are losing out each year due to floods, droughts, short-lived winters, excessive rainfall, and insufficient rain."

PKSF, which finances NGOs providing credits and non-financial services at the grassroots level, is on the front lines of this development, as the country's agricultural loans amounting to Tk 350 billion annually are primarily disbursed through NGOs.

Dr Ahmed also notes with concern that the increasing frequency of heatwaves is reducing farmers' work capacity and degrading soil fertility, further inflating the already-substantial losses.

The 2024 Bangladesh heatwave, a significant climatic event that began on April 1, saw temperatures soar up to 42°C (108°F). This extreme heat had forced nationwide school closures, according to Meteorological department.

He mentions that Bangladesh lacks the technical capacity to collect and process data on agricultural losses due to heatwaves and short-lived winters from weather stations.

Despite the frequency of climate-related disasters, the country's total 16.88 million farm holdings in accordance with agricultural census remain unprotected, lacking the safety nets necessary to recover from losses and continue farming.

"Crops insurance remains neglected, keeping the entire agricultural sector uninsurable, as no government has seriously addressed the issue," he says in his Dhaka office, his frustration evident.

Farmers like Md Sabiar Rahman from Godagari in Rajshahi, a five-hour journey from Dhaka, are bearing the brunt of these disasters.

In November 2023, incessant rain turned his paddy fields into a soggy, inharvestable mess, costing him Tk 100,000 or $ 834, he shared with this correspondent recently during a visit.

Forced to take a Tk 50,000 or $417 loan from an NGO to cover his losses, Rahman struggles with the mandatory monthly deposits called DPS (a monthly deposit pension scheme)required by the loan, further straining his fragile finances.

Sitting under the tin roof of his modest home in Dewapara in Godagari, Rahman recalls the brief respite that a climate-related crop -insurance project offered him in 2018 when a similar disaster struck.

"We need financial help after disasters that affect our crops, but there's no insurance protection now," he says, his voice tinged with frustration and desperation.

Rahman's concerns are a common topic at local NGO meetings as he frequently advocates for the reinstatement of crop insurance.

Ekramul Hoque of Dhuroil in Mohanpur, another area in Rajshahi, has similar tales to tell.

Hoque, who now relies entirely on agriculture after leaving his job as a madrasa teacher (religious school), cultivates paddy and potatoes on his five bighas (approximately 135,000 square feet) of land.

"We are often victims of nature-whether it's floodwater, heavy rain, or no rain at all-it all affects our crops," he says.

The short-lived winters also impacts his potato cultivation, leading to poor yields.

"We need financial support after losing our crops, but there is no insurance now," Hoque laments, recalling the one time he insured his paddy in 2018, a decision he wishes he could make again.

The lack of widespread crop insurance in Bangladesh is rooted in a complex web of issues, including opposition reportedly from the ministry of agriculture.

Former Agriculture Secretary Md Nasiruzzaman told the FE that the then Agriculture Minister, Ms. Motia Chowdhury, opposed the introduction of widespread crop insurance, arguing that poor farmers would be unable to afford the premiums. As a result, the burden would fall on the government. He had worked with Ms. Chowdhury for a long time.

This correspondent had tried to contact the former agriculture minister, Ms Motia Chowdhury, but she could not be found through mobile phone.

A former senior official of the Ministry of Finance, while explaining the Agriculture Ministry's lack of cooperation on the issue of crop insurance, mentions that he faced significant opposition. "I encountered many challenges, even when launching an ADB-funded crop-insurance project in 2014," Mr. Arijit Chowdhury recalls.

Industry experts say that Bangladesh does not have crop insurance in the true sense. Very few non-life insurers out of 81 provide it as part of their "CSR (Corporate Social Responsibility)" activities, but these efforts are not impactful for the entire agriculture sector or cannot be called widespread.

They have emphasised that subsidies are essential to make crop insurance viable, as insurers will only enter the market if such support is provided.

"I can say with certainty that there is no real crop insurance in Bangladesh. We only provide small-scale coverage, which can be seen as CSR because, without subsidies, offering crop insurance commercially across the agriculture sector is not feasible," says Md Khaled Mamun, Chief Executive Officer of Reliance Insurance Company, a leading privately-owned non-life insurer in Bangladesh.

"Subsidies are crucial, along with strong government commitment to protect farmers. In India, the government covers up to 80 per cent of premiums, which is why their system is successful," he adds.

The Manila-based Asian Development Bank (ADB) funded a weather-index-based crop -insurance project, implemented by the state-owned Sadharan Bima Corporation (SBC).

The project, which ran from 2014 to 2018, covered farmers in Rajshahi, Sirajganj, and Noakhali due to their exposure to droughts, floods, and cyclones respectively.

Despite insuring 10,000 farmers and collecting Tk 5.2 million in premiums, the project paid out Tk 6.5 million in compensation during its four-year run, along with additional administrative costs.

The ADB-funded pilot project on weather-index-based crop insurance concluded in 2018.

The ADB- financed pilot project used the NGOs' network to collect the farmers interested in the crop insurance.

Md Wasiuful Hoq, Project Director and now a general manager at SBC in Dhaka, suggests forming a national agriculture- insurance corporation to address these issues and ensure wider coverage.

He points to India's Agriculture Insurance Company as a successful model, where crop insurance is widely available with substantial government subsidies.

Mr. Hoq also states that this is feasible in Bangladesh, too, and insurers will not incur losses if reinsurance is secured, along with government subsidies.

Arup Kumar Chatterjee, an ADB financial specialist who worked on the project, emphasises that crop insurance is vital for any South Asian country's agricultural sector, including Bangladesh.

"It serves as a financial safety net, protecting farmers against losses caused by various climate and weather-related threats that can adversely affect crops," he notes.

He notes that premium subsidies are a sensitive issue. "Governments can use premium subsidies to promote private-sector agricultural insurance to replace ad hoc disaster relief."

In India's main crop- insurance scheme, the Pradhan Mantri Fasal Bima Yojana (PMFBY), the subsidy, is the central element of the insurance system.

Most of the PMFBY premiums are subsidised by central and state government payments to insurers, ensuring affordable premium rates for farmers.

The Insurance Development and Regulatory Authority (IDRA), the insurance regulator of Bangladesh, believes that agricultural insurance should be a primary tool for mitigating agricultural risks, says Mohammed Jainul Bari, who was Chairman of the IDRA until recently, but has now resigned as he was appointed by recently ousted Sheikh Hasina government.

However, he has now been appointed chairman of the largest state-owned non-life insurer, SBC, which conducted the crop -insurance pilot project.

Mr. Bari says that the IDRA is always ready to approve such products promptly, and parametric insurance products are seen as suitable for dealing with climate-related risks by providing prompt loss funding, which is crucial for maintaining crop cycles.

Parametric (or index- based) solutions are a type of insurance that covers the probability (or likelihood) of a loss-causing event happening (like an earthquake) instead of indemnifying the actual loss incurred from the event, according to Swiss Re.

"Developing countries with widespread agricultural insurance generally rely on government subsidies to make it affordable," says Mr Bari.

He notes that India has the largest number of farmers covered by agricultural insurance, with private insurers participating under government-subsidized schemes.

However, IDRA does not have the authority to decide on subsidies, which is the purview of relevant ministries.

Ekramul Hoque from Dhuroil in Mohanpur told this writer recently that after the ADB project ended, they even seiged the SBC office in Rajshahi in frustration. This is also confirmed by Mr. Mohammed Ali, the manager of SBC Rajshahi.

"We are desperately waiting for such insurance to return so we can maintain our crops without interruption and secure our livelihoods," he said, expressing the deep uncertainty farmers face without this type of protection.

The story calculates the exchange rate at Tk 120 per $1.​

 

[Saif]

Agriculture product exports rise in July-Sept

Bangladesh’s agricultural product exports in the July-September period of the financial year 2024-25 increased slightly while the shipment of vegetables witnessed a sharp decline in the period...

www.newagebd.net

Agriculture product exports rise in July-Sept
Staff Correspondent 13 October, 2024, 23:02

A file photo shows farmers collecting cucumbers from a field at village Subachani in Munshiganj. Bangladesh’s agricultural product exports in the July-September period of the financial year 2024-25 increased slightly while the shipment of vegetables witnessed a sharp decline in the period. | Focusbangla photo

Bangladesh’s agricultural product exports in the July-September period of the financial year 2024-25 increased slightly while the shipment of vegetables witnessed a sharp decline in the period.

Exporters said that the country’s vegetables export faced trouble in the past three years due to increased freight costs.

They also expressed hope that the exports would gain in the coming months as the freight costs started decreasing.

According to Export Promotion Bureau data, Bangladesh’s agricultural product exports in the first quarter of FY25 increased by 3.18 per cent to $264.76 million compared with those of $256.61 million in the same period of FY24.

The EPB data showed that Bangladesh’s vegetables exports in July-September of FY25 decreased by 63.68 per cent to $17.21 million compared with those of $47.38 million in the same period of fY24.

‘We the vegetables exporters have been struggling with the growing freight costs for more than three years,’ Mohammad Monsur, chairman of the FBCCI standing committee on import and export of fruits and vegetables, told New Age on Sunday.

He also identified lack of adequate cargo space for perishable goods, shortage of scanners at the country’s airports and increased production costs of agricultural products as the other reasons for declining vegetables exports.

Monsur, however, said that the shipment of vegetables increased slightly in the past one month as the freight costs started decreasing.

In the first quarter of the FY25, export earnings from agricultural products showed a positive growth due to the increased shipment of fruits, he said.

The government data showed that the country’s fruits exports in July-September of FY25 increased by 472.76 per cent to $16.61 million compared with those of $2.90 million in the same period of the previous financial year.

Export earnings from dry food in the period increased by 7.71 per cent to $51.41 million.

Monsur said that Bangladesh had struggled to capture its potential market share for vegetable exports in key markets such as the United Kingdom, Australia, Saudi Arabia and the United Arab Emirates.

He said that competitor countries, including India, Pakistan and Sri Lanka, were able to send low-cost vegetables with lower freight costs, putting Bangladesh at a disadvantage situation.​

 

[Saif]

How an energy transition can secure our food production

The growing energy intensity of an increasingly mechanised agriculture sector brings together food and energy in a delicate nexus.

www.thedailystar.net

How an energy transition can secure our food production

Energy intensity of the agriculture sector has been going on over several decades, spurred by both market forces and supportive government policy. FILE PHOTO: STAR

The economic shift and modernisation in Bangladesh have brought about a demographic transition and impacted the country's energy sector, agriculture and labour market. Due to a steady urban migration trend, the rural population growth declined since 2015, and the share of rural population has fallen from 76 percent in 2000 to 60 percent of the total population in 2022 (World Bank, 2024). Fertility has dropped remarkably with the current annual population growth rate being 1.1 percent. Besides, a study published in The Lancet indicates that the country's population will reach half the current level by the end of the century (Vollset et al, 2020).

At the same time, sustained economic growth is projected to boost energy consumption. According to the Centre for Economics and Business Research, Bangladesh will become the 20th biggest economy in the world by 2037, leading to an increase in energy demand from higher industrial productivity and consumer spending. The shifts in demographic structure and projected economic growth have important implications for energy consumption, food production and land use that must be considered holistically.

The first implication is the decline in the rural labour force, particularly in the agriculture sector. The share of the labour force of the country employed in the agriculture sector has fallen from 61 percent in 2000 to 37 percent in 2022 (World Bank, 2024). While the share of the population employed in agriculture is still quite high compared to the falling contribution of this sector to the GDP (Byron, 2023), the remedy to this low-value addition is to increase mechanisation in agriculture to increase the productivity per worker, along with their earnings potential. Indeed, the mechanisation and energy intensity of the agriculture sector has been going on over several decades, spurred by both market forces and supportive government policy. The government has been subsidising diesel and agricultural machinery and allowing tax-free imports of the machinery. With rising prices of scarce agricultural labour, farmers turn to machinery, particularly during the short and busy harvesting season. The mechanisation of agriculture also increases food security by reducing crop spoilage, as it allows emergency rapid harvesting of crops before the onset of floods or other adverse climate events, especially in the Haor areas of Sylhet. The scope of mechanisation encompasses tillage, weeding, seeding, spraying, rice transplanting, harvesting, threshing, winnowing, and of course irrigation, all of which depended on diesel-fuelled machinery. This market is constantly increasing, and along with it the demand for fuel and electricity. The agriculture sector has emerged as the second biggest consumer of petroleum, after the transport sector.

The growing energy intensity of an increasingly mechanised agriculture sector brings together food and energy in a delicate nexus. The threat to food security from interruptions to global supply chains was identified during Covid, and this caused the government to increase subsidies for agricultural machinery (Bhuyan, 2020). Moreover, following the onset of the Ukraine war, the prices of petroleum products in the global market have increased, leading to rising prices of natural gas-based fertilisers and increasing the cost of food production (Baffes and Koh, 2022). The global energy supply disruptions revealed how threats to energy security can affect food production from two angles, firstly by increasing the cost of energy-intensive mechanised processes in agriculture, and secondly by increasing the cost of fertilisers that are necessary to increase crop yield. Around six percent of the total gas consumed in Bangladesh is by the fertiliser industry, as per a 2023 report by the power, energy and mineral resources ministry.

Given the close food-energy nexus, food security now hinges on self-sufficiency in energy supply. Diversifying the energy mix of Bangladesh by making it less dependent on imported fuels can promote food security. This is where renewable energy can play a crucial role. Renewable energy could contribute to securing the food-energy nexus and reduce economic risks in several ways. Renewable power plants—after the initial one-off capital investment in plant machinery and equipment—can generate electricity using natural energy sources like solar or wind energy without requiring the input of costly fuels. More renewable power also means scarce gas resources can instead be used for the fertiliser industry.

Bangladesh has significant potential for solar and wind energy, and these can promote energy security and also contribute to food security. Renewable energy resources like solar power require land use, and Bangladesh has restrictions regarding the use of agricultural land for other purposes. However, energy-intensive mechanised agriculture can actually increase crop productivity even in limited agricultural land. Research has demonstrated that energy poverty can hamper agricultural productivity, directly by reducing mechanisation, and indirectly by diverting the rural workforce to other sectors which enjoy more energy input (Shi et al, 2022).

Energy and food production are not competing but rather complementary objectives. With proper and careful planning, energy transition combined with food security considerations can help both climate change mitigation and national adaptation. It is therefore imperative to have a clear strategic direction for the food-energy nexus to harness their synergy for the sustainable socio-economic development of the country.

Shahriar Ahmed Chowdhury is the director of Centre for Energy Research at United International University.​

 

[Saif]

Need for speedy disbursement of farm loan

The news that loan disbursement for agriculture has registered a 27 per cent fall is quite concerning. Much as the reason behind the decline in the disbursement of farm loan may be strong, any reversal in agricultural output due to this will only lead to an undesirable food status for the country.

thefinancialexpress.com.bd

Need for speedy disbursement of farm loan
FE
Published :
Oct 30, 2024 22:17
Updated :
Oct 30, 2024 22:17

The news that loan disbursement for agriculture has registered a 27 per cent fall is quite concerning. Much as the reason behind the decline in the disbursement of farm loan may be strong, any reversal in agricultural output due to this will only lead to an undesirable food status for the country. Agriculture is one area that has worked wonder thanks to a cumulative effort by both agricultural scientists and an equally appreciable response by farmers to rise up to the challenge. The country now produces about 40 million metric tonnes of rice--- the main staple of the population---a phenomenal increase from 16.8 million in 1995. Although the official figures are suspect, there is no doubt that agriculture has achieved near self-sufficiency in the production of paddy. But it is the diversity in crop production and greater success in other agri-food sector that have made a difference in food and nutrition availability for its people. Its total agricultural output including the major crops, vegetables and fruits now stands at about 72 million tonnes.

So, any assumption that delayed extension of agricultural loan will not affect the cultivation of boro that is yet to begin is misplaced. Many farmers have shifted to commercial farming of cash crops and even exotic fruits because they earn more profit from those than from paddy. Cultivation of vegetables and fruits goes round the year and if they cannot go for early cultivation and harvesting of their crops, their profit declines. This year's prolonged floods have caused an unprecedented farming adversity in many areas. But there are other areas not affected by floods where farmers must not be given any reason to rue over the missed opportunity because of the late disbursement of farm credit. Even in some affected areas where water has receded quickly, the inundation has brought special opportunities for farmers to go about their cultivation of choice crops. They deserve farm loans on a priority basis.

Let it be noted here that compared to crop production, other areas of agri-food sector have, of late, grown at higher rates. Against 2.9 per cent of annual growth of crop, livestock has grown at 3.9 per cent and the fisheries and forestry have surged to more than 5.0 per cent growth a year. The floods that ravaged Sylhet, Noakahli and Cumilla ended up causing irreparable damage to livestock there. Cattle and buffaloes were washed away and farmers had to dispose of their domestically raised chickens and ducks cheaply. Without financial support they cannot piece together their means of livelihoods on top of their annual staple production.

The fact is if the country's farmers survive, the nation also survives. They have so long successfully fed the nation and they must be given financial support including farm loans in order to rebuild their occupation and life. Some industries have received overriding incentive packages which may have served the interests of the more privileged but at the same time contributed to social inequality. Farmers' requirements need to be prioritised in the interest of the country's food security. Increasing natural calamities including the latest cyclonic storm Dana under which the standing Aman paddy has been badly affected in many areas are a pointer that the farming community needs all kinds of support including technological, consultative and infrastructural.​

 

[Saif]

Govt raises paddy, rice purchase rates for current Aman season

The government will pay higher prices to buy paddy and rice during the current Aman season, the harvest of which has already begun in rural areas.

www.thedailystar.net

Govt raises paddy, rice purchase rates for current Aman season

The government procurement process for the current Aman harvest will begin on November 17 and continue until mid-March. The photo was taken from Islampur village of Tetulia in Panchagarh on Tuesday. Photo: Habibur Rahman

The government will pay higher prices to buy paddy and rice during the current Aman season, the harvest of which has already begun in rural areas.

Amid rice prices edging up in local markets and concerns over the paddy output, this decision was made by the Food Planning and Monitoring Committee (FPMC) yesterday.

Farmers will receive Tk 33 per kilogramme for paddy if they supply the grain to public warehouses following specific quality standards. This price is 10 percent higher than what they received for selling their produce to the food directorate during the previous Aman procurement.

Besides, the government will purchase parboiled rice, the most widely consumed grain in Bangladesh, from millers at a 7 percent higher rate of Tk 47 per kilogramme.

This decision comes at a time when staple food prices have been rising, exceeding last year's levels. There is also concern about reduced Aman yields due to decreased cultivation areas and crop damage caused by repeated flooding in the eastern region.

Yesterday, the FPMC, an inter-ministerial committee responsible for monitoring the country's overall food situation and advising on food security policies, decided to purchase 3.5 lakh tonnes of paddy this season.

Finance and Commerce Adviser Salehuddin Ahmed chaired the meeting at the secretariat.

This target is 75 percent higher than the original purchase of 2 lakh tonnes during the Aman harvest in 2023.

However, the government has reduced its parboiled rice purchase plan for this year to 5.5 lakh tonnes, a 14 percent decrease from the 6.4 lakh tonnes bought by the Directorate General of Food during the previous Aman season.

Besides, the food ministry will purchase 1 lakh tonnes of sunned rice this year at Tk 45 per kilogramme.

The procurement process for the current Aman harvest will begin on November 17 and continue until mid-March, according to a statement from the food ministry.

The food ministry purchased 21.6 lakh tonnes of rice domestically in FY24, an 11.3 percent increase from the previous year.

During the current FY25, the government has a food budget to procure 19.33 lakh tonnes from domestically grown food grains out of its total procurement plan of 29.83 lakh tonnes, according to the finance ministry.

The government has allocated Tk 16,678 crore to buy rice and wheat from the domestic and international markets to carry out various social safety net schemes.

The allocation to buy food grains is 6 percent higher from the revised budget of the previous year.​