[🇧🇩] Agriculture in Bangladesh

[Saif]

Supporting small farmers to ensure nation's food security

Small farmers, who constitute 28 per cent of the country's population and work on farmlands that have been shrinking at an alarming rate of about 16,000 hectares annually, thanks to unplanned urbanization, development work and expanding settlements, are obviously in dire straits. As they contribute

thefinancialexpress.com.bd

Supporting small farmers to ensure nation's food security
Published :
Jul 02, 2024 22:09
Updated :
Jul 02, 2024 22:09

Small farmers, who constitute 28 per cent of the country's population and work on farmlands that have been shrinking at an alarming rate of about 16,000 hectares annually, thanks to unplanned urbanization, development work and expanding settlements, are obviously in dire straits. As they contribute in a big way to the nation's food security, protecting them involves preventing the agricultural lands on which they still work from further receding. At the same time, they would need policy support including cheap credit to procure the crucial agricultural inputs to continue with their farming activities. Needless to say, they would also need the support from the scientific community to come up with new farming techniques to make the best use of the agricultural land still available through preserving its fertility and increasing productivity by introducing newer varieties of rice and other food crops that can withstand the onslaught of climate change.

All such issues of huge national significance were the subject of deliberations at a recent seminar hosted in the city by the government-supported policy think tank, Bangladesh Institute of Development Studies (BIDS). The experts at the discussion could not agree more with the factors already delineated in the foregoing that are coming in the way of the small farmers' capacity to go on with their farming activities sustainably. Consider the target of producing 47.2 million tonnes of rice by 2050, as projected by the Bangladesh Rice Research Institute (BRRI), which does research and develop ways to improve rice production. It may be argued that encouraging commercial agriculture more aggressively, the nation can meet that target using modern farming technology. But in that case, the challenge would be to protect the small farmers and their livelihood. In fact, protection of the small farmers also includes preservation of their agricultural practices handed down from previous generations and the culture that go with them.

True, commercialisation of agriculture that requires investment of bigger capital promises higher profit. And that often comes at the expense of the existing farming practices that focus more on protecting the environment and the ecosystem of land, water, and the farming community than on just yield. And how thoughtless use of fertllisers and pesticides wreaked havoc on land fertility and agricultural ecology in the name of the mid-twentieth century's so-called 'Green Revolution' is now history.

A developing, land-scarce nation facing the challenge of feeding an ever-growing population, Bangladesh can ill-afford to put all its eggs in one basket. So, a mix of commercial, scientific and traditional farming culture would be required to protect the existing farming community as well as boost production of food grains. In this connection, discussants at the said seminar suggested bringing over 4.4 million hectares of land in 17 coastal districts under three-season cultivation. The policymakers in the agriculture sector need to think seriously about the idea keeping in mind that the worst challenge to food security will be coming from the country's coastal districts, home to around 29 per cent of the population. As rising sea level has increased salinity of coastal lands, the farmers of those districts will require such varieties of food crops which can fight salinity, floods and other vagaries of nature effectively.

Saving the small farmers is not just about serving a humanitarian cause. For it is important that a sector that accounts for 40 per cent of national employment is well-protected through necessary state intervention in the form of financial inclusion of small farmers so their living condition is improved. In that case, they won't have to switch to other professions or migrate en masse to the cities in search of a livelihood.​

 

[Saif]

Traditional farming now at risk

Small farmers are now in danger of leaving the profession altogether. In the face of severe shortcomings, the traditional small holding farmer can no longer afford to stay true to the profession of his forefathers and that has raised alarm bells across the board from policymakers to agriculture exp

thefinancialexpress.com.bd

Traditional farming now at risk
SYED MANSUR HASHIM
Published :
Jul 02, 2024 22:03
Updated :
Jul 02, 2024 22:03

Small farmers are now in danger of leaving the profession altogether. In the face of severe shortcomings, the traditional small holding farmer can no longer afford to stay true to the profession of his forefathers and that has raised alarm bells across the board from policymakers to agriculture experts. And although the country has pivoted towards gradual industrialisation and trade, food security remains a cornerstone of State policy because of the large population that must be fed. In the midst of the increasing trend of big business groups branching into large-scale commercial farming, the lot of the average farmer has fallen on hard times.

These matters and others came up for discussion at a seminar organised by the Bangladesh Institute of Development Studies (BIDS) last Sunday. Experts have opined that traditional agriculture needs to evolve and in a developing nation like Bangladesh, more targeted policy support is needed to save small farms. Increasingly, agri-commercialisation is elbowing out small farmers, who form the backbone of agriculture in this country. The fact that Bangladesh needs to raise rice output to 47.2 million tonnes by 2050 isn't going to happen on its own, and a lot depends on these subsistence farmers surviving and continuing to grow crops. While technological advancements have made it possible for the country to feed its 165 + million populace till date, experts opined that some 4.4 million hectares of land in 17 coastal districts need to be brought under the three-season cropping system.

Policymakers must be acutely aware of giving space to small farmers if it wishes not only to uplift millions out of subsistence living but also ensure food security. However, changing weather patterns - ample historical data that is available through research in Bangladesh and collaborative works between Bangladeshi and foreign agencies, reveal that adverse conditions point to a declining trend of arable land. While there has been progress made in introducing multiple stress-tolerant varieties of crop, policy support will be essential to bring more land under cultivation.

Entire generations of farmers are quitting farming and this has everything to do with the fact that they cannot get their money's worth during harvest season. Market imperfections run rampant and not much has happened to cut out the middlemen who make windfall profits at the cost of farmers who often sell at a loss. The lack of proper logistics is another major impediment that hasn't been sorted out satisfactorily for farmers to get their harvested crops or other produce to markets cost effectively.

As pointed out by one expert, the government should give them support in terms of mechanisation, i.e. provide the financial regime whereby small farmers can leapfrog into the 21st century with time-saving equipment that could seriously increase food production at field level. Despite some breakthroughs, not enough research is being done to bring multiple varieties of crops and other foodstuffs to the farmers which could help them increase the variety of things they can grow or rear on land. A gamut of policy initiatives that will range from reaching not just financial support, but also work out the nagging problems of supply chain, which includes addressing problems with the cold chain. Bangladeshi farmers produce in abundance many essential items - a significant portion of which rots due to unavailability of sufficient cold storage facilities.

Experts and agriculturists agreed that many issues need to be worked out, without which, traditional agriculture employing tens of millions of people will increasingly be at risk. Extortion on roads, transport management and the presence of syndicates which need to be treated as a law-and-order problem and dealt with accordingly. It is not the job of the government to manage the market, rather it ought to be involved heavily in ensuring fair market practices.​

 

[Saif]

Urea output plummets on feeble gas supply

Bangladesh is mostly relying on imports for urea as gas shortage has brought local fertiliser production to a near halt, in a development that will cost the country dearly in terms of foreign currency reserves and food inflation.

www.thedailystar.net

Urea output plummets on feeble gas supply
Imports meeting fertiliser needs ahead of aman season

Bangladesh is mostly relying on imports for urea as gas shortage has brought local fertiliser production to a near halt, in a development that will cost the country dearly in terms of foreign currency reserves and food inflation.

The country's six urea factories need 329 million cubic feet of gas a day (mmcfd), according to Petrobangla. Since February, Petrobangla has been providing only 107 mmcfd to the fertiliser sector. Subsequently, four of the six factories have halted production.

Only Ghorashal Polash Fertiliser (GPFPLC) and Karnaphuli Fertiliser (Kafco) are getting their required gas and are in operation. Of the two, the government has to purchase fertiliser at the prevailing rate in the global market from Kafco, a joint venture between the government and private investors from Bangladesh, Japan, Denmark and the Netherlands.

It means the government is getting urea from only GPFPLC out of five state-owned producers at a lower cost.

Currently, there is no fertiliser crisis, according to Md Saidur Rahman, chairman of Bangladesh Chemical Industries Corporation (BCIC).

"If we don't get gas from one or two more factories in the near future, there might be a problem," he said, adding that if the energy division were able to supply adequate gas, the factories would have been running in full swing.

The Aman season, which accounts for about 40 percent of Bangladesh's rice production, begins in July-August and ends in November-December. If the gas crisis continues, fertiliser supply may be hampered in the upcoming Aman season, which can go on to fuel food inflation.

In the absence of local urea production, the government is relying more and more on costly imports.

This gives rise to two problems: exhaustion of limited dollar stockpile and ensuring a strict shipment schedule of fertilisers, said Jahangir Alam, an agriculture economist.

As of June 30, foreign currency reserves stood at $21.8 billion, enough to meet about three-and-a-half months' import bills, according to data from the Bangladesh Bank.

"If we rely completely on imports during the farming season, there might be hold-ups in getting steady supply of fertilisers. Rather, it will be beneficial for all if we increase gas supply to the fertiliser plants," Alam added.

Gas supply to the fertiliser plants was reduced to make way for increased supply to the gas-fired power plants for higher electricity generation during the summer months, said a top official of Petrobangla on the condition of anonymity to speak candidly on the matter.

"The gas crisis has been going on for a long time, so the supply has to be rationed," he added.

Between July last year and April this year, Jamuna Fertiliser could meet just 42 percent of its production target for want of gas, while Shahjalal Fertiliser managed 57 percent, according to the latest report of BCIC.

Chittagong Urea Fertiliser met 74 percent of its production target and Ashuganj Fertiliser and Chemical Company 69 percent, the report said.

The four factories are shut now, which means they fell short of their production target for fiscal 2023-24 by a wider margin, according to BCIC officials.

Besides the urea, Bangladesh consumes DAP and TSP fertilisers, both of which are mostly imported.

The lone DAP factory achieved only 36.6 percent of its production target and the TSP factory achieved about 66 percent in April.

Last fiscal year, as much as $5 billion was spent on fertiliser imports, according to data from BCIC. In fiscal 2020-21, fertiliser imports stood at $1.4 billion. In the previous years, imports were even lower.

About 15 years ago, BCIC was producing 70 percent of the fertiliser required, according to Alam, also a director of Dhaka School of Economics. Now, local production accounts for 25 to 30 percent of the demand.

"BCIC became import dependent instead of focusing on scaling up local production, which was the main duty of the organisation. We have the advantage and ability to produce nearly 100 percent of required urea locally, but due to gas shortage, the import dependency has been increasing," Alam added.

If the government purchased fertiliser from local producers, the cost for per metric tonne of urea would be about Tk 25,000, according to BCIC officials. It costs more than Tk 45,000 to bring the same volume of urea from abroad. For urea purchases from Kafco, the rate is about Tk 40,000.

 

[Saif]

Potential of seaweed farming looks bright

Seaweed typically grows in salty sea water or on rocks below the high-water marks. It is an aquatic resource that is rich in iodine, vitamins and minerals and has been used widely in food supplements and pharmaceutical products. Research in many nations has shown that it has properties to help figh

thefinancialexpress.com.bd

Potential of seaweed farming looks bright
SYED MANSUR HASHIM
Published :
Jul 12, 2024 21:27
Updated :
Jul 13, 2024 21:41

Seaweed typically grows in salty sea water or on rocks below the high-water marks. It is an aquatic resource that is rich in iodine, vitamins and minerals and has been used widely in food supplements and pharmaceutical products. Research in many nations has shown that it has properties to help fight various diseases in the human body and yet this natural resource has hardly been given the attention to it deserves in Bangladesh. Our farmers at large are not aware that this could very well provide a valuable source of income if farmed correctly.

While it is easy to talk about the 'Blue Economy', steps have not been taken at policy level to popularise seaweed cultivation. According to one study by a UN body, the annual global production of seaweed until recently was 33 billion tonnes with an economic value of US$11.80 billion. In Bangladesh, farmers are currently producing roughly 400 tonnes with an economic value of roughly $0.5 billion. The global market production is projected to double by 2024.

These are serious numbers and it's time to take cognizance of the fact that Bangladesh needs to diversify its exports. For too long the discourse in the country has revolved around diversification of readymade apparels, which constitutes 85 per cent of exports. The narrative has revolved around industrial production. While it is easy to forget that around 40 per cent of the workforce is still engaged in agriculture, and climatic changes are effecting changes in weather patterns that are adversely affecting traditional crops, it is time the government started thinking about other things like, seaweeds. As stated before, seaweeds have multiple applications and use ranging from food supplements to and for fodder (for cattle), chemicals, medicines, construction materials, to name but a few.

Another major advantage is that the production of this resource requires no land, fertilisers or pesticides - it simply grows on its own. All it requires is proper cultivation in the coastal belts of the country. According to researchers, there are some 32 types of seaweed available in Bangladesh and "14 of these species are commercially viable but only four variants are being farmed, that too on a small scale."

While the applications for this aquatic resource are well documented, as is the commercial value of it, there is no national plan to develop the resource on a large scale and numerous problems have been identified which hold back the growth of this sector. Cox's Bazaar area remains a prime location for planned seaweed production. Some efforts have been taken by the UNDP to train and financially equip some members of the community and the exercise has shown its viability. But it is one thing to ramp up seaweed production that adheres to international standards, quite another to introduce proper packaging and marketing of the product in question. Seaweed is a product and like all products, it requires a proper supply chain, marketing and promotion.

The global market for this product already exists, but there are numerous uses for it locally. In other countries, seaweed has been used to make fodder for cattle and that has direct application in our agriculture. If the supply of seaweed could be ensured in a large quantity at domestic level, the country's pharmaceutical industry would procure it as a raw material, and the surplus could be exported.

With introduction of large-scale seaweed cultivation, Bangladeshi farmers could get the benefit of opening up a secondary source of income and nutrition - not just by farming it, but also partly processing it, which would be considered "value addition" to fetch better prices. This could generate employment in the coastal belt. At the end of the day, since the demand is there, why not use this nature's gift to help generate income to reduce poverty and better the livelihoods of people along the coastal belt? Experience in other countries has shown that that seaweed is in vogue in developed nations as a food and new applications for this versatile resource is being found every day.

For any of this to happen, policymakers need to take stock of what is needed to develop a seaweed sector. Some of the impediments include lack of technology and knowhow, a trained labour force to harvest seaweed, etc. But these are hardly issues because workers can be trained and joint-ventures can be set up with foreign companies that can introduce the technology needed to make modern farms. State research organisations can also reach out to other countries which are global leaders in seaweed production. What is needed is policy direction and the will to effect change and only the State has the resources to imitate the changes needed in terms of rules and regulations and introduce the right policies to encourage what could be, a budding industry with serious export potential.​

 

[Saif]

Agro-processors for allowing aromatic rice export

Agro-processors have urged the government to allow the export of aromatic rice to increase earnings, according to a press release of Bangladesh Agro-Processors’ Association (Bapa).

www.thedailystar.net

Agro-processors for allowing aromatic rice export

Agro-processors have urged the government to allow the export of aromatic rice to increase earnings, according to a press release of Bangladesh Agro-Processors' Association (Bapa).

Bapa said the domestic market for fragrant rice is small.

Exports of aromatic rice will result in the shipment of other products, enhancing the export basket, said the trade body after its 23rd annual general meeting (AGM) at Dhaka Club on Saturday.

The commerce ministry last year banned the export of fragrant rice in an effort to contain prices in the domestic market.

At the AGM, Bapa members expressed discontent over the government's latest move of reducing incentives on the export of agro-processed products from 15 percent to 10 percent.

Bapa demanded a reduction of the source tax for export from one percent.​

 

[Saif]

Banks release Tk 30,104cr in farm loans in 10 months

Banks disbursed Tk 30,104 crore in agricultural loans in July-April of the 2023-24 financial year, which accounts for 86 per cent of the total disbursement target for FY24, according to Bangladesh Bank data...

www.newagebd.net

Banks release Tk 30,104cr in farm loans in 10 months
Staff Correspondent 14 July, 2024, 22:26

Banks disbursed Tk 30,104 crore in agricultural loans in July-April of the 2023-24 financial year, which accounts for 86 per cent of the total disbursement target for FY24, according to Bangladesh Bank data.

The recovery amount of agricultural loans reached Tk 28,949 crore in the 10 months of FY24, which was 7.66 per cent higher than that of the same period of the preceding year.

The disbursement target for agricultural credit in FY24 was Tk 35,000 crore, an increase of 13.6 per cent from the previous financial year's target of Tk 30,811 crore.

The outstanding balance, including interest, stood at Tk 56,487 crore in July-April, marking a 9.35-per cent increase from the previous financial year.

Overdue of agricultural credit stood at Tk 9,994.9 crore at the end of April 2024, which is 43.83 per cent higher than the overdue of Tk 6,949 crore at the end of April 2023.

State-owned commercial banks and specialised banks aimed to disburse Tk 12,030 crore, while private banks and foreign commercial banks targeted to release Tk 22,970 crore in farm loans in FY24.

Crop sub-sector received 45 per cent of the disbursed credit, followed by live-stock and poultry 24 per cent, fisheries 15 per cent, others 10 per cent and poverty alleviation 6 per cent.

In April 2024, Grameen Bank and 10 large non-government organisations disbursed Tk 12,584.73 crore as microcredit and recovered Tk 15,030.21 crore.

As agriculture plays a vital role in the country's economy, issuing credit to farmers has become crucial to keeping the agriculture-based rural economy vibrant, especially amid the ongoing global economic crisis.

More than 40 per cent of the country's workforce is directly employed in the agriculture sector.

Farm loans enable farmers to invest in inputs like seeds, fertilisers and machinery, leading to increased productivity and economic growth.

Farm loans also contribute to rural development by providing income opportunities and improving infrastructure in rural areas.

On May 22, 2022, the central bank instructed the country's banks to disburse agricultural credit at a concessional interest rate of 4 per cent for cultivating import substitute crops, including pulses, oilseeds, spices and maize.

In FY23, farmers received Tk 32,829 crore in loans and repaid Tk 33,010 crore.

Most of these loans were channelled through NGOs, which charge interest rates ranging from 24 to 30 per cent.

To address the challenge of reaching remote areas, banks allocated loan amounts to NGOs.

To encourage direct lending to farmers, the Bangladesh Bank has instructed banks to disburse a minimum of 50 per cent of their total disbursements through their own channels.​

 

[Saif]

Bangladeshi mangoes approved for export to China: Embassy

China’s General Administration of Customs has made an announcement giving approval for Bangladeshi mangoes’ export to China. On July 26, the General Administration of Customs of China issued an announcement on phytosanitary requirements for importing fresh mangoes from Bangladesh. On

thefinancialexpress.com.bd

Bangladeshi mangoes approved for export to China: Embassy
UNB
Published :
Jul 29, 2024 18:44
Updated :
Jul 29, 2024 18:44

China's General Administration of Customs has made an announcement giving approval for Bangladeshi mangoes' export to China.

On July 26, the General Administration of Customs of China issued an announcement on phytosanitary requirements for importing fresh mangoes from Bangladesh.

On July 10, Bangladesh and China signed "Protocol of Phytosanitary Requirements for Exporting of Fresh Mangoes from Bangladesh to China" witness by the two leaders of the countries in Beijing.

The release of the announcement is an important measure to implement the outcomes of Prime Minister Sheikh Hasina's visit to China, which will provide a huge Chinese consumer market to Bangladeshi high-quality mangoes and help Bangladesh achieve its export diversification goals, said the Embassy of China in Dhaka on Monday.

The Embassy said it vividly demonstrates the essential features of mutually beneficial and win-win results of economic and trade cooperation between the two countries.​

 

[Bilal9]

The commerce ministry last year banned the export of fragrant rice in an effort to contain prices in the domestic market.

It is rather easy to fathom why they did this.

Orders from New Delhi. This kneel-down servile Hasina philosophy in deference to Modi is bound to invade every export sector of Bangladesh.

In fact if Bangladeshi Awami amlas could scale back our apparel exports to help Indian apparel exports, they'd gladly do it.

Unfortunately - the Indian apparel export sector is, shall we say - deemed not "salvageable", even by Indian insider economists. Because of inbuilt inefficiencies and hampered by preponderance of small scale producers. They cannot compete with Bangladesh.

Witness, how Modi's lapdog WB BJP supremo Shuvendu was recently called into Bangladesh High Commission in Kolkata today. Hilarious!

Maybe they are trying to do a mini regime change in WB.

Didi's police resisted but gave in at the last minute.



I guess these days Didi and Hasina don't really see eye-to-eye.

Essentially Modi runs Hasina's foreign policy and even Didi cannot say anything about that.

 

[Saif]

https://thefinancialexpress.com.bd/views/opinions/mango-export-to-china-bd-should-grab-the-opportunity

Mango export to China: BD should grab the opportunity
Mir Mostafizur Rahaman
Published :
Jul 31, 2024 21:54
Updated :
Jul 31, 2024 21:54

Bangladesh has a huge trade gap with China. In the FY22-23 the gap was worth over US$15.48 billion. For long, Bangladesh has been trying to reduce the gap but it could hardly make any headway in its pursuit. Bangladesh's export to the second largest economy of the world has hovered around one billion dollar mark.

Against this backdrop, the announcement by the Chinese authorities allowing Bangladesh to export its fresh mangoes is a welcome ove. According to reports, the General Administration of Customs of China issued the 'Announcement No. 94 of 2024' titled 'The Announcement on phytosanitary requirements for importing fresh mangoes from Bangladesh' on Friday last.

The announcement followed the signing of "Protocol of Phytosanitary Requirements for Exporting of Fresh Mangoes from Bangladesh to China" in Beijing during the recent visit of Prime Minister Sheikh Hasina. It is a major breakthrough because through this announcement, Bangladesh has got the certification from the Chinese authorities for exporting fresh mangoes as well as the opportunity to explore 172 billion US dollar fruit market of China.

Besides opening up a huge Chinese consumer market to Bangladeshi high-quality mangoes, this decision will also help Bangladesh achieve its export diversification goals given the fact that nearly 90 per cent of the country's export basket is filled by only RMG products. For long, China has been showing its keen interest in importing mangoes and other fruits, including jackfruit and guava, from Bangladesh.

They also announced their decision to send an expert team to Dhaka to assess the feasibility and quality of Bangladeshi fresh mangoes. The team visited Bangladesh in June and the customs authority of China gave clearance regarding export of Bangladeshi mango to the market of the world's second largest economy based on the report of the team.

China was the second-largest global importer of mangoes, mangosteens and guavas after the US, buying around 380,000 tonnes in total in 2020. China's annual imports of mangoes - both fresh and processed - have steadily increased over the years, with a five-fold spike between 2019 and 2020.

On an average, China annually imported nearly 100 thousand tonnes of mangoes in the last several years. And its procurement price is not unattractive, as according to reports, the price of a 16-kg basket of mangoes supplied to China ranged from $16.56-24.84, depending on quality.

The Ministry of Agriculture reports that mango exports from Bangladesh reached approximately 310 tonnes in the fiscal year 2018-19, followed by 283 tonnes in 2019-20, 1,632 tonnes in 2020-21, and 1,757 tonnes in 2021-22. This represents a remarkable 467 per cent growth in mango exports over the past three years.

Middle Eastern countries have been the primary destinations for Bangladeshi mangoes, while the United Kingdom, Sweden, Switzerland, the Netherlands, and Germany are also considered potential markets. Now, China emerges as another market for Bangladeshi mangoes. So, it is expected that the country's mango exporters would try their best to enter the Chinese market strongly.

Presently, neighbouring countries like Vietnam, Myanmar, Thailand and Cambodia are major mango exporters to China. As Bangladesh is given an opportunity, the concerned authorities should take an all-out effort to ensure that the mango exports to China can be launched smoothly.

The agriculture extension department has a critical responsibility in this regard. They should ensure that the farmers are able to get the necessary inputs for mango farming easily and at a reasonable price.

They should also impart necessary training to the mango farmers on how to maintain export quality of their harvests. The authorities concerned should also take necessary precautions so that no irregularities can take place in this case.

One can hardly forget the fact that on several occasions in the past, the country's image was dented abroad due to malpractices indulged in by a section of exporters to cheat the importers, in terms of quality and standard of export items.

And, due to malpractices indulged in by exporters concerned, shrimp exports from Bangladesh to the EU market had faced restrictions for a long time. Bangladesh has witnessed a significant increase in mango exports over the past few years, with taste of the fruit playing a vital role in overcoming competitors despite challenging conditions.

Let us hope that the country's export earnings would get a boost through exploring this new avenue.

If mango exports can be continued smoothly, it will also help Bangladesh to get certification for other fruits. One need not forget the huge market that China offers to the world.​

 

[Saif]

Biotechnology and agricultural productivity

Is biotechnology the next best resort to reach the desired levels of agricultural productivity? With the fast-increasing hungry mouths worldwide, the need to ensure food for all does call for methods to raise agricultural productivity twice its current state in the next decade or so. This has nece

thefinancialexpress.com.bd

Biotechnology and agricultural productivity
Wasi Ahmed
Published :
Aug 13, 2024 22:19
Updated :
Aug 14, 2024 21:17

Representational photo

Is biotechnology the next best resort to reach the desired levels of agricultural productivity? With the fast-increasing hungry mouths worldwide, the need to ensure food for all does call for methods to raise agricultural productivity twice its current state in the next decade or so.

This has necessitated reinvigoration of agricultural research to increase crop productivity, and it is gaining more and more prominence not only in countries with farmland constraints but also in other nations where availability of land is no major problem. This is particularly so because innovations and technology have caused a huge watershed in crop productivity since the past decades necessitating a significant change in the patterns of cultivation, resulting in a manifold increase in the yield of crops of almost all varieties.

Gone are the days of conventional practices of cultivation reliant mostly on traditional knowledge handed down from generations. In Bangladesh, of late, the practice has attained a mix of conventional and semi-intensive methods of cultivation backed largely by positive experiments undertaken by the country's agro researchers. However laudable the efforts are, those barely go beyond innovation of newer seed varieties, use of fertiliser and the like. A great facilitator in the direction of boosting productivity is commonly believed to be the emerging genetically modified (GM) crops, cultured and fruitfully made use of by many countries. In a land-scarce country like ours with increasing population, raising productivity of agricultural products -- not just grains but a whole variety of horticulture products -- is crucial.

Agricultural productivity in the country has witnessed a sea change with grain production trebling between 1975 and 2020. Despite the laudable success, there are serious constraints to raising agricultural productivity due mainly to small holdings, declining soil fertility and various stress factors such as drought, flooding and intrusion of saline water. Besides, availability of cultivable land is declining because of urbanisation, construction of homesteads on crop fields in rural areas prompted by an increase in population and also land degradation. It has been estimated that currently the country has 8.3 million hectares of land available for crop production.

It is in this context that experts are strongly in favour of biotechnology to play an important role in increasing yield and addressing environmental stresses. Experts also hold the view that biotechnology provides powerful tools for sustainable development in agriculture, fisheries, livestock and forestry as well as the food and pharmaceutical industries.

It is quite clear that over the past several decades, technological developments and modernisation have grown concomitantly. Specifically, advances in genetic engineering have made possible the manipulation of crops to increase yield, ensuring food supplies for the increasing world population. The benefits of such agricultural modernisation have mostly favoured developed countries, whereas people living in developing and underdeveloped countries suffer widespread hunger, malnutrition and poverty. Hence, there is a necessity to create policies in order that the advances in biotechnology are translated into better agricultural practices that can meet the ever-growing food demand. The agricultural modernisation process, however, must consider that sustainable development is imperative in modern societies and that there is an increasing desire for consuming organic foods based on the idea that these foods have a higher quality and stimulate regional agricultural production.

Biotechnology has helped increase crop productivity by introducing such qualities as disease resistance and increased drought tolerance to the crops. Now, researchers can select genes for disease resistance from other species and transfer them to important crops.

Farmers use crop-protection technologies because they provide cost-effective solutions to pest problems which, if left uncontrolled, would severely lower yields. Crops such as corn, cotton, and potato have been successfully transformed through genetic engineering to make a protein that kills certain insects when they feed on the plants. In some cases, an effective transgenic crop-protection technology can control pests better and more cheaply than existing technologies.

Recognising the importance and impact of bio-technology in agricutural productivity, concerns have, however, been expressed from some quarters which feel that inadequate effort has been made to understand the problems in the use of transgenic crops, including their potential long-term impact. Genetically modified (GM) crops should be used for consumption after those have been subjected to rigorous tests to find if there are adverse impacts. This, no doubt, is a matter that should be looked into carefully and methodically. While there should not be any roadblock to innovations, it is important to remain alert to the adverse impacts that might accompany the brighter aspects of innovation and research. In Bangladesh, given that bio-technology is at a nascent stage, the country's researchers and scientists should bear with the odds, if any, while embracing innovations in this regard.​

 

[Saif]

Govt must prioritise smallholder farmers, farms

BUSINESS syndication and extortion on the road and at markets have for long been identified as major reasons for price increase of essentials. While consumer rights campaigners have continuously asked the government to address the issues, the authorities have failed to stop the menaces. The...

www.newagebd.net

Govt must prioritise smallholder farmers, farms
21 August, 2024, 00:00

BUSINESS syndication and extortion on the road and at markets have for long been identified as major reasons for price increase of essentials. While consumer rights campaigners have continuously asked the government to address the issues, the authorities have failed to stop the menaces. The failure has had negative implications on consumers, small farmers and their farms. Marginal farmers’ platform Bangladesh Poultry Association on August 19 once again demanded an immediate government action to break syndicates of big companies in the poultry sector to protect the interests of consumers and small farmers. The association says that a syndicate of a few corporate companies manipulates the prices of feed and day-old chicks, resulting in high production costs of chicken and eggs. The association alleges that 100,000 out of 160,000 small farms were forced to shut down because of a syndicate of 4–5 corporate companies, which gained an additional profit of Tk 5,920 crore in the past year through feed and chick market syndication. The prices of feed, day-old chicks and the production cost of an egg in Bangladesh are almost double the amounts in neighbouring countries because of market manipulation.

The price of feed is Tk 40–50 a kilogram, of a day-old chick Tk 25–35, the production cost of an egg Tk 5 and of broiler chicken Tk 76–86 a kilogram in India while the price of feed is Tk 60–72 a kilogram, of a day-old chick Tk 60–100, the production cost of an egg Tk 10.29 and that of broiler chicken Tk 155–170 a kilogram in Bangladesh. Marginal farms face, as the association claims, a loss of Tk 40–60 a kilogram of chicken and the financial strain leads to the closure of many small farms. The association also blames the livestock services department for favouring corporates. The government on various occasions admitted the presence of market manipulation and fined some businesses for this. The Competition Commission on January 23 fined two poultry farms, Diamond Egg Limited and CP Bangladesh, Tk 3.5 crore for their alleged collusive practices in artificially increasing egg prices. Market manipulation by business cartels is believed to have also caused a sharp increase in prices of other goods, too. When farmers cannot make even a marginal profit for their agricultural produces, intermediaries and big businesses make abnormal profits. In Bangladesh, 35 per cent of the final retail price goes to processors and intermediaries.

The authorities must realise that smallholder farmers are key to ensuring food security and facilitating them is the best way to ensure fair prices for producers and consumers. The authorities must, therefore, make adequate intervention to break business syndicates and show the dynamism needed to contain food inflation and save smallholder farmers. It must establish an effective market monitoring mechanism and empower smallholder farmers through effective policies and ground-level interventions.​

 

[Saif]

'Deshi Sarbi' banana farming popular in Gopalganj

GOPALGANJ, Aug 19: Banana cultivation is gaining popularity in Sadar upazila of the district as farmers are getting fair prices from the produce this year. Akkas Ali Mollah, 60, a farmer of village Bowalia, said he cultivated 'Deshi Sarbi' banana on five bighas (260 decimal) of land this current

thefinancialexpress.com.bd

'Deshi Sarbi' banana farming popular in Gopalganj
OUR CORRESPONDENT
Published :
Aug 20, 2024 09:32
Updated :
Aug 20, 2024 09:32

A farmer nursing his banana field at Bowalia in Sadar upazila of Gopalganj — FE Photo

GOPALGANJ, Aug 19: Banana cultivation is gaining popularity in Sadar upazila of the district as farmers are getting fair prices from the produce this year.

Akkas Ali Mollah, 60, a farmer of village Bowalia, said he cultivated 'Deshi Sarbi' banana on five bighas (260 decimal) of land this current year and its harvest already been start.

"I've got good price through selling the banana. Per (one) pone Banana (20 quartet) is being selling (wholesale) at the rate of Tk 250," he said.

Akkas also said this cash crop (Banana) farming also began commercially in this region and growers highly benefited from this Banana produce.

According to the Department of Agric-ultural Extension (DAE), Gopalganj official sources said a total of 189 hectares of land have been brought into Banana cultivation in the district this year. As many as 73 hectares are in Sadar upazila.

Liton Bala, Sub-Assi-stant Agriculture Officer (SAAO), Gopinathpur union under Gopalganj Sadar upazila in the district, told the FE that Banana farming profitable crop for farmers in this region and a farmer can harvest the banana from only 60 to 70 days from planting and farmers got at least 160 pcs of Banana from a Banana tree which wholesale price is Tk 500.

He more added when a farmer planting a Banana tree (seeding tree) and its continuing minimum three years long, due to growth its root & there is no need further planting SAAO, Liton said.

Now, the growers in this region farming this cash crop commercially. The farming areas are Gosherchar, Manikdha, Char Sonakoir, Podda-rerchar, Haridashpur, Bowalia, Charpathalia and Char Suktail with etc under Gopalganj Sadar upazila in the district, sources said.

Mofiz Sharif, 55, a Banana farmer of village Gopinathpur, Ward No. 5, under Gopinathpur union of Sadar upazila in the district, said he cultivated 'Dashi Sarbi' Banana on 25 decimal of land this current year.

Where investment about Tk 10,000 but I will got nearer Tk 50,000 from its produce, net profit Tk 40,000, Mofiz further said.

A farmer can harvest Banana around 60 to 70 days since its planting. It is not only that easy farming and short duration besides more profit, Mofiz said.

Abdul Kadir Sarder, deputy director (DD) Agriculture, Gopalganj told The FE that Banana cultivation is more profitable cash crop for farming in this region. About 1,150 farmers involved in this farming in the district this current year. Of them 450 farmers involved under Gopalganj Sadar upazila and those farmers are earning nearer taka 80,000 from one local bigha (52 decimal) of land but investment Tk only 20,000.

So, farmers are more interested on this Banana farming. Side by side our field workers SAAO closely monitoring on this farming and continuing collaborating them for this Banana cultivation, DD added.​

 

[Saif]

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.

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Agri product exports growing slower than others. 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.

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.​

 

[Saif]

Put yourself in farmers’ shoes

Bangladesh Bank Governor Ahsan H Mansur yesterday urged banks to be compassionate, humane and empathetic when dealing with farmers who fail to repay loans for genuine and understandable difficulties.

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Put yourself in farmers’ shoes
BB governor tells banks dealing with agri borrowers in difficulties

Bangladesh Bank has set a target to disburse Tk 38,000 crore in loans for agricultural and rural development in fiscal year 2024-25. Photo: Star/file

Bangladesh Bank Governor Ahsan H Mansur yesterday urged banks to be compassionate, humane and empathetic when dealing with farmers who fail to repay loans for genuine and understandable difficulties.

"…to understand the situation farmers are in, put yourself in their shoes," he said, quoting a former official of International Monetary Fund (IMF).

"If we look at the situation from the farmer's angle, we will automatically behave humanely," he added.

He was responding to a journalist citing instances of farmers being harassed by being handcuffed and tied with a rope around the waist when being taken to court for failing to repay loans of Tk 5,000 to Tk 1,000.

Meanwhile, people defaulting on substantial amounts of loans are going scot-free, said the journalist.

"Borrowers should be viewed through the humanitarian lens. Because anyone can fall in difficulties at any time irrespective of whether they are big or small (in terms of wealth and influence). So, the humanitarian aspect is very important," said Mansur.

There could be cases where a farmer's death or any other difficulty was causing suffering for his family due to his loans, he said.

"Will it be useful by harassing the family members by putting rope around their waist?" he asked.

Borrowers can default on loans for a variety of reasons and strict enforcement of the law may not always be reasonable, he said.

Loans which farmers are genuinely unable to repay should be written off instead of being kept in the records for years, said Mansur.

"I would say that the matter should be resolved humanely on getting to know about the genuine reason," he said.

Mansur further said farmers often end up requiring assistance when intending to avail loans and this is where they fall victim to harassment from "brokers".

So, banks should ensure that they reach the loans directly to the farmers, he said.

"We will conduct a study on whether the brokers are getting the loans or the farmers to understand the ground reality. Then, we will take steps accordingly. The brokers will be dealt with an iron fist if necessary," he said.

The interaction took place at the central bank, which announced the Agricultural and Rural Credit Policy for FY25, by setting a target for disbursing Tk 38,000 crore in loans for agricultural and rural development in fiscal year 2024-25.

The target is 8.57 percent higher than that of the previous year.

Banks disbursed Tk 37,154 crore in agricultural and rural loans against a target of Tk 35,000 crore last fiscal year, meaning they exceeded the target by 6.15 percent.

Of the loan target set for the ongoing fiscal year, the state-owned commercial and specialised banks have been tasked with disbursing Tk 12,615 crore while private and foreign commercial banks Tk 25,385 crore.

A bank must use its own networks, such as branches, sub-branches and agent banking, contract farming or any other relevant linkage to achieve at least 50 percent of its credit disbursement targets.

The rest can be disbursed through its partnerships with other lenders.

Moreover, 60 percent loans should go to the crop sector, 13 percent fisheries and 15 percent livestock.

Managing directors of various banks and officials of Bangladesh Bank were present on the occasion.​

 

[Saif]

Massive crop losses may hurt our food security

Farmers, who suffered heavily during the floods, need help

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Massive crop losses may hurt our food security
Farmers, who suffered heavily during the floods, need help

VISUAL: STAR

After the recent floods, which claimed at least 71 lives, it is evident that a long, painful rebuilding process awaits affected communities even if they are not out of the woods yet, with the Met office warning about potential short-term flooding again later this month. Saddled simultaneously with the challenges of rebuilding homes and regaining livelihoods, these people will need continued help to weather this crisis. One area of recovery that deserves particular attention is agricultural rehabilitation.

According to an estimate, the recent floods have damaged crops worth Tk 3,346 crore, with about 14.14 lakh farmers in as many as 23 districts affected. A total of 986,214 tonnes of crops—including Aush and Aman paddy, vegetables, ginger, turmeric, fruit orchards, chilies, betel leaf, watermelon, papaya, and tomatoes—have been destroyed. Among the crops, paddy production has suffered the most significant damage. The inundation of Aman paddy fields and seedbeds has resulted in 6,85,000 tonnes of Aman paddy being wiped out, while 1,06,000 tonnes of Aush paddy have suffered the same consequence. That means, Tk 2,519 crore worth of paddy alone has been destroyed. Overall, crops were grown on over 14.3 lakh hectares, about 14.58 percent of which has been damaged.

This is a huge loss for the farmers, and a blow to our food security, with its impacts already being felt in the markets. Fields that swayed with the promise of a bountiful harvest even a few weeks ago now lies barren, their crops rotting in the mud. Beyond crops, the devastation of seedbeds and fish enclosures has further deepened the crisis. In the fisheries sector, the losses in 12 most-affected districts have exceeded Tk 1,590.36 crore. Add to that the damage caused to livestock, poultry, animal feed, aquaculture infrastructure, etc. In the face of such overwhelming loss, the need for swift action to rehabilitate farmers, especially paddy farmers, cannot be overstated.

One of the immediate priorities is to make agricultural inputs—including seeds and fertilisers—readily available for replanting crops. So the authorities must reach out to all farmers in need of help. Reportedly, the government is placing the highest priority on setting up Aman seedbeds to ensure replanting in ravaged fields. Many have still complained of a crisis of seeds and lack of official help. This has to be addressed. One silver lining in this regard, as with the rescue and relief efforts throughout this flood, has been the support of volunteers, particularly students and teachers from various agricultural universities, who are collecting and preparing seeds to help farmers.

Their collaboration and coordination will be a big part of the agricultural rehabilitation process, and they must keep up these efforts. They should also ensure that fish and vegetable farmers and entrepreneurs are not left out. We must bear in mind that many of the farmers have also lost their homes and savings, and without proper financial assistance, they will be unable to purchase the necessary inputs or invest in the recovery of their land. Low-interest loans, grants, and subsidies can be made available to help them get back on their feet.​

 

[Saif]

Enough fertilizer in stock to last till December: Agriculture Secretary

There will be no crisis with the stock of fertilizers, whether urea or non-urea, in the country till December, according to the secretary to the Agriculture Ministry on Sunday. There is at present a stock of 10.63 lakh metric tonnes of fertilizer, Secretary Emdad Ullah Mian said on Sunday. &ldquo

thefinancialexpress.com.bd

Enough fertilizer in stock to last till December: Agriculture Secretary
UNB
Published :
Sep 08, 2024 22:17
Updated :
Sep 08, 2024 22:17

There will be no crisis with the stock of fertilizers, whether urea or non-urea, in the country till December, according to the secretary to the Agriculture Ministry on Sunday.

There is at present a stock of 10.63 lakh metric tonnes of fertilizer, Secretary Emdad Ullah Mian said on Sunday.

“With the current stock of fertilizers, the demand can be met till December. However, there is still some crisis in opening the LC of fertilizer import but we are constantly working to resolve the issue,” he said, while speaking at a view-exchange meeting with Bangladesh Agriculture Reporters Forum (BARF) at the ministry.

However, the process to provide incentives to the affected farmers in the flood-hit areas is ongoing, he said.

So far, Tk 193 crore has been allocated for the farmers which will be used for agriculture rehabilitation in phases, he added.

More than 14 lakh farmers in 23 districts have been affected by the floods, but mainly 11 districts have suffered extensive damage and most of the incentives are being given to the farmers of these districts, said secretary Emdad.

Besides, seedbeds of Aman have been made in all the unused lands of the agriculture department in these affected districts and adjoining districts which will be distributed among Aman farmers.

Under the rehabilitation programme, 80,000 small and marginal farmers of nine districts will be given free seeds of Ufsi variety, 10 kg of fertilizer assistance and Tk 1000 cash through mobile banking services for cultivating one bigha of land, he said.

Meanwhile, around 1.5 lakh farmers in 22 districts will be given seeds of different varieties of vegetables and Tk 1,000 in cash for early winter vegetable cultivation at homesteads.

The floods were caused by the onrush of water from upstream and torrential rainfall from August 16 to August 30, he said.

Almost ten lakh metric tonnes of produce including paddy, fruits and vegetable were damaged in the flood, incurring a damage of Tk 3,346 crore.

Besides, a total of 3,72,733 hectares of land have been damaged in the flood.​

 

[Saif]

Women in agriculture: Breaking barriers, shaping futures

Women comprise half of the country's population, yet they still lack equal access to the formal workforce. In the informal sectors, such as household work and rural farm and non-farm activities, they play a vital role that often goes unrecognised. There is, however, hope that the situation will gra

thefinancialexpress.com.bd

Women in agriculture: Breaking barriers, shaping futures
Published :
Sep 08, 2024 21:53
Updated :
Sep 08, 2024 21:53

Women comprise half of the country's population, yet they still lack equal access to the formal workforce. In the informal sectors, such as household work and rural farm and non-farm activities, they play a vital role that often goes unrecognised. There is, however, hope that the situation will gradually improve as more and more women are joining the mainstream workforce. Over the past decade, Bangladesh has witnessed a quiet but powerful transformation in its agricultural sector. Women are now stepping forward from management of household chores to undertaking of commercially run small and medium farming enterprises across the country. This shift is not only altering the face of agriculture but also changing the dynamics of the labour force, where females are increasingly outpacing their male counterparts in participation and entrepreneurship. According to the Bangladesh Bureau of Statistics (BBS) Labour Force Survey (LFS) 2022, women aged 15 and above now account for 26.2 per cent of the agricultural workforce, compared with 19.2 per cent of men. This represents a significant 7-percentage-point gap, with women taking the lead in agriculture and its sub-sectors, including poultry, livestock, fisheries, and horticulture.

A recent report published in the Financial Express shed ample light on the success stories of female agro-entrepreneurs. The story of one woman entrepreneur highlights the scope of this transformation. Starting with a modest cattle farm, she has expanded into a thriving enterprise with croplands, fisheries, and livestock. Her journey, along with countless others, signals a broader trend of women turning household farming into commercial operations. Women, often viewed as supplementary contributors to family farming, are now the driving force behind many agricultural enterprises. This not only increases their economic independence but also empowers them to take control of their lives and play important roles in their communities. Women's growing participation in agriculture is also important to meet the shortage of farm labourers as most of the male farmers are migrating to urban areas or abroad with the hope of earning more money. Here, women can fill the vacuum left by their male counterparts.

Analysts believe that this gender shift in agriculture can further boost Bangladesh's agricultural productivity, provided women's capacity is continually upgraded. Various stakeholders-including local startups, banks, and international organisations-are already stepping in to support these efforts. Companies like iFarmer are facilitating access to finance, inputs, and markets, ensuring that women farmers have the resources they need to grow their businesses. These collaborations are dismantling long-standing barriers that have held women back.

In today's world, women are seen as active agents of change. The increase in the number of women in farming and entrepreneurship is just one example of how women are overturning long-standing gender norms that have confined many to household chores for generations. As women continue to cement their foothold in various sectors, it is essential to address the obstacles that may hinder their progress, such as the gender pay gap and sexual harassment. Moreover, to sustain this momentum, government agencies, commercial banks and development partners must intensify their efforts to provide the necessary support. Thus women's access to the same resources and opportunities as their male counterparts can be ensured. Training, access to technology, and financial inclusion are crucial to helping their transition from small-scale operations to larger, more impactful enterprises.​

 

[Saif]

Govt to train 32,000 Farmers

The government has launched an initiative to train 32,000 farmers on climate change adaptation strategies in an effort to build resilience against the growing impact of climate change

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Govt to train 32,000 Farmers

Photo: Collected

The government has launched an initiative to train 32,000 farmers on climate change adaptation strategies in an effort to build resilience against the growing impact of climate change.

As part of this project, 800 farmer groups from nine upazilas across five districts will be selected to participate in the training.

The plan was revealed at a National Validation Workshop on Vulnerability Risk Assessment held today.

The training aims to equip farmers with the knowledge and skills needed to adapt to changing environmental conditions, helping secure agricultural productivity in the face of climate challenges.

According to officials, the Global Environment Facility (GEF) is funding this project.

The project, with a budget of Tk 66 crore, began in July 2023 and is expected to be completed by June 2028.

Of the total budget, Tk 56 crore has been allocated to the Department of Agricultural Extension (DAE), while Tk 10 crore is set aside for the Department of Environment.​

 

[Saif]

Averting a potential threat to agriculture

Any possible threat to a vital sector of the national economy, agriculture to be precise, raises alarm and great concern. A back-page story of the Financial Express on Saturday shed light on a looming fertiliser crisis that could hit agricultural output hard during the upcoming Rabi season in Janua

thefinancialexpress.com.bd

Averting a potential threat to agriculture
Published :
Sep 29, 2024 21:34
Updated :
Sep 29, 2024 21:34

Any possible threat to a vital sector of the national economy, agriculture to be precise, raises alarm and great concern. A back-page story of the Financial Express on Saturday shed light on a looming fertiliser crisis that could hit agricultural output hard during the upcoming Rabi season in January. The recent floods have already severely impacted crop production in 23 districts, affecting over 1.41 million farmers. A total of 986,214 tonnes of crops, including Aush and Aman paddy, vegetables, ginger, turmeric, fruit orchards, chilies and tomatoes, have been completely destroyed. Now a fertiliser shortage, as warned by different government agencies including the agriculture ministry and the Bangladesh Chemical Industries Corporation (BCIC), poses a double threat to the sector.

The economic hardship farmers have been facing due to the devastation of crops caused by the vagaries of nature is undoubtedly a matter of grave concern. The most alarming aspect of this situation, with potentially devastating consequences for the future of agriculture, is the failure of relevant government bodies to import sufficient fertiliser. Thanks to the unparalleled resilience of farmers against all odds, they will somehow recuperate from the losses caused by the floods. However, what will happen to them, to agriculture, and to the national economy if farmers are not supplied with an adequate amount of fertiliser in time? The gravity of this issue cannot be overemphasised. Experts have pointed out that a significant shortage of fertilisers could lead to severe disruptions in agricultural production, potentially spiralling into widespread unrest across the nation.

Despite the government's efforts to manage the situation, including approving the procurement of 140,000 tonnes of fertilisers and seeking to source supplies from various countries, including Russia, there remains an urgent need for coherent and coordinated action. The Bangladesh Agricultural Development Corporation (BADC) currently owes $80 million in bills to international suppliers, a situation that has prompted major suppliers to halt shipments of fertilisers to Bangladesh. Projections indicate that by January 2025, the country's fertiliser stocks will dwindle to critical levels, potentially standing at just 0.438 million tonnes, which is insufficient to meet the needs of farmers during the peak Rabi season. Stakeholders are, therefore, asking the government to increase fertiliser imports and ensure timely payments to suppliers. Moreover, a number of fertiliser factories at home have been closed for months due to gas shortages, exacerbating the situation. It is imperative to ensure that fertiliser production facilities receive adequate gas supplies to resume operations.

Against the backdrop of poor performance in different sectors, the country's agriculture achieved sterling successes over the years in terms of research and development of new strains of crops, crop diversification and a near self-sufficiency in food production. These achievements of the sector not only contributed to the relative economic stability of the country but also to an increased calorie intake of the people and poverty reduction. No laxity should be allowed to vitiate the prospect of this vital sector. Fertiliser and quality seeds are the most fundamental inputs on which the agricultural sector thrives. Even if it requires allocation of special fund for procuring adequate amount of fertiliser, the government must opt for the initiative in the interest of the economy and the nation.​

 

[Saif]

Ensure steady supply of fertilisers for farmers

Looming fertiliser crisis could disrupt food production

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Ensure steady supply of fertilisers for farmers
Looming fertiliser crisis could disrupt food production

VISUAL: STAR

It is quite concerning to learn that the country may soon face a severe fertiliser shortage unless the government takes immediate action to address the production and import shortfalls. According to a report by Samakal, three major fertiliser factories have been closed for an extended period due to the ongoing gas crisis. At the same time, the government has been unable to meet its fertiliser import targets due to the dollar shortage and resultant accumulation of outstanding bills. Complicating matters further are administrative issues stemming from the instability following the July uprising and regime change, which prevented timely decisions. If the government fails to address these challenges promptly, it could disrupt food production in the coming months.

Reportedly, due to gas supply issues, factories under the Bangladesh Chemical Industries Corporation (BCIC) fell short of the fertiliser production target for the fiscal year 2023-24. While the target was set at one million tonnes, only 646,000 tonnes were produced, leaving a deficit of more than 350,000 tonnes. The current fertiliser stocks stand at just 435,000 tonnes, while the demand through March next year is 1.8 million tonnes. The alarming gap between demand and supply (through domestic production and imports) highlights the severity of the problem, requiring swift government intervention.

The question is: how will the government meet this enormous demand with only two of its fertiliser factories operating at present and import efforts being halted? Apparently, the BCIC's attempts to increase fertiliser imports through government-to-government (G2G) agreements have been hampered by the dollar crisis. Furthermore, Bangladesh owes international suppliers $80 million in unpaid bills, leading many exporters from China, Canada, Saudi Arabia, and Morocco to halt shipments.

Given these circumstances, the government must take steps to resolve the crisis urgently. Immediate measures should include settling the outstanding payments to resume imports and avert a supply chain collapse. Additionally, to reduce reliance on foreign imports in the long term, the government should bolster local fertiliser production by resolving the gas crisis and reopening closed factories. This will ensure a more stable and self-sufficient supply chain. We must understand that the fertiliser shortage is directly linked to our food security. Ensuring a steady supply of fertiliser is vital for maintaining agricultural productivity, supporting farmers, and preventing any food crisis. So, the authorities cannot afford to delay action any longer.​

 

[Saif]

Bangladesh's rice output crosses 4cr tonnes for the first time

For the first time, Bangladesh has bagged more than 4 crore tonnes of rice in a fiscal year (FY) thanks to increasing yields of the most grown crop, according to official data..Local farmers have been gradually switching to high-yielding and hybrid varieties of the cereal grain, bringing t

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Bangladesh's rice output crosses 4cr tonnes for the first time

For the first time, Bangladesh has bagged more than 4 crore tonnes of rice in a fiscal year (FY) thanks to increasing yields of the most grown crop, according to official data.

Local farmers have been gradually switching to high-yielding and hybrid varieties of the cereal grain, bringing the country's need for rice imports down to zero.

Estimates by the Bangladesh Bureau of Statistics (BBS) show that farmers bagged 4.10 crore tonnes of rice in FY 2023-24, up by 4.1 percent year-on-year in what was the highest growth in six years.

The largest growth in yields came from Aman paddy, which was harvested in the previous winter ahead of Boro paddy in the dry season. Boro is the principal rice crop in Bangladesh.

Farmers got about 2.10 crore tonnes of rice through the Boro harvest in the May-June period early this calendar year.

FY24 marked the fifth year of a consistent rise in rice production with Wais Kabir, a former executive chairman of the Bangladesh Agricultural Research Council, linking the spike to yield enhancement.

"One of the main factors is that farmers have shifted to cultivating modern varieties of rice. They are growing more high-yielding and hybrid varieties. The acreage has also risen over time," he said.

Jahangir Alam, an agricultural economist, said increased rice production cut import of the cereal grain.

"We did not have to import any rice [in FY24]. Besides, this did not have much of an impact on prices as it seems public and private stocks were adequate," Kabir added.

Data of the food ministry shows that Bangladesh imported 10.56 lakh tonnes of rice in FY23 compared to zero public and private imports as of October 7 this year.

Kabir also said one of the reasons behind the zero rice imports was a surge in wheat imports.

The use of wheat by bakery and food processing industriesas well as animal feed has increased. This contributed to the reduced requirement for rice, he added.

Imports of wheat, the second most consumed cereal grain after rice, soared 71 percent year-on-year to 66 lakh tonnes in FY24.

M Asaduzzman, a professorial fellow at the Bangladesh Institute of Development Studies expressed doubt over the rice production estimate.

He questioned why prices have gone up if supply was indeed adequate.

"Production has not risen as much as reported. Higher prices mean there is a supply shortage," he said, adding that rice accounts for a good portion of food inflation, which was high in the previous fiscal.

The BBS said food inflation rose to 10.65 percent in FY24 from 8.71 percent the year prior.

The price of rice coarse rice, the cheapest variety, was 7 percent higher year-on-year at Tk 50 to Tk 55 per kilogramme in Dhaka yesterday.

Asaduzzman informed that recurrent floods this year have raised concerns over the cultivation of Aman.

"We will have to import rice if Aman production suffers. And that will be clear at the beginning of November. So, the government should take a decision regarding imports next month," he said.

By the end of August, the US Department of Agriculture (USDA) said Aus and Aman rice acreage and production in Bangladesh might decline because of the floods, particularly the devastating deluge in the eastern part of the country.

Estimates by the Department of Agricultural Extension show that Aman acreage declined to 57.35 lakh hectares this season from 35.5 lakh hectares previously.

Agricultural economist Alam said the overall Aman rice output may be 1.55 crore tonnes to 1.60 crore tonnes this year.

"Farmers had to transplant the seedlings late because of floods. This may cause lower yields," he said while adding that imports might not be needed as stocks of the grains are favourable.

"But the next Boro rice crop is crucial," he said. "We will not need to worry about food security of the staple grain if we can ensure production inputs, mainly fertiliser, at the doorsteps of farmers."

Kabir said the ongoing flood in the Sherpur-Netrokona districts will damage the Aman crop in the fields and it cannot be recovered.

"So, whether we will need to import or not will depend on the next Aman harvest. And the output of the upcoming Boro would depend largely on the management of fertiliser by the government."

"The interim government has to ensure proper management of fertiliser to ensure a good harvest of Boro rice," he added.​

 

[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.​