[🇧🇩] Agriculture in Bangladesh

[Saif]

Foreign fruits turn costlier for duty hike

Recent supplementary duty (SD) hikes on the import of fruits have dealt a fresh blow to people who were already cutting back on these delicacies since the imposition of regulatory duties in mid-2022..On January 9, the National Board of Revenue (NBR) increased the supplementary duty on the

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Foreign fruits turn costlier for duty hike

Customers complain that retailers are now charging Tk 20 to Tk 30 more for each kilogramme of apples, oranges, grapes, sweet oranges and watermelons, forcing them to reduce purchases amid persistently high inflation for nearly two years. Photo: Anisur Rahman

Recent supplementary duty (SD) hikes on the import of fruits have dealt a fresh blow to people who were already cutting back on these delicacies since the imposition of regulatory duties in mid-2022.

On January 9, the National Board of Revenue (NBR) increased the supplementary duty on the import of certain dry and fresh fruits, such as nuts and betel nuts, to 45 percent from the previous 30 percent.

The duty on some fresh fruits, such as grapes, apples, and watermelons, as well as on juices, was raised to 30 percent from 20 percent.

This mid-fiscal year move by the government is widely interpreted as an attempt to increase revenue collection and meet conditions set by the International Monetary Fund (IMF) for its ongoing $4.7 billion loan programme for Bangladesh.

Economists and businesses have criticised the timing of the NBR's decision, as people have been struggling with inflation above 9 percent for nearly two years.

Customers report that retailers are now charging Tk 20 to Tk 30 more for each kilogramme (kg) of apples, oranges, grapes, sweet oranges, and watermelons, forcing them to reduce purchases amid persistently high inflation for nearly two years.

Naznin Akhter, a shopper at Karwan Bazar, one of Dhaka's largest kitchen markets, expressed her concern, stating that she could no longer afford foreign fruits in the volumes she used to purchase a year ago.

"Ten days ago, I bought medium-sized oranges at Tk 260 per kg, but the price has now risen to Tk 290. Similarly, apples that were Tk 290 per kg are now Tk 320," she said.

"I had planned to buy 2 kg of oranges and 2 kg of apples. However, due to the price hike, I ended up purchasing only 1.5 kg of each," she added.

Naznin urged the government to reconsider the duty hikes to ease the burden on consumers.

Fruit traders say the previous duty hikes reduced imports by roughly 30 percent, whereas the latest SD hikes have slashed wholesale sales by 20 to 25 percent.

Mohammad Sagar Mia, a shop owner at Karwan Bazar, said prices have risen by Tk 15 to Tk 20 per kg at the retail level.

"In some cases, the price of certain fruits has increased by Tk 25 per kg," he said.

Prior to January 9, he used to buy black grapes for Tk 500 per kg at wholesale, and now it costs Tk 530. Similarly, the price of small-sized pomegranates has risen from Tk 450 to Tk 480.

The price of oranges was Tk 200 to Tk 230 but has now increased to Tk 240 to Tk 260. Apples, which were Tk 280 earlier, are now Tk 300, he added.

Sagar also noted that pears, previously priced at Tk 270 to Tk 280, are now Tk 288.

Serazul Islam, president of the Bangladesh Fresh Fruits Importers Association, told The Daily Star that they sent a letter to the relevant government office a month ago requesting an exemption from regulatory duties and a reduction in advance income tax.

This request was particularly important with Ramadan, the month of fasting, due to begin in March, when believers typically incorporate different fruits into their daily diet, he said.

Islam also claimed that March was a time when the variety of local fruits available in markets was limited, although this could not be independently verified.

However, the opposite occurred, he said.

"With high inflation persisting, people have already been buying less fruit over the past two years," he added.

"The recent tax increases will further force many middle-income and lower-middle-income consumers to cut back on their fruit consumption," he said.

As a result of rising prices, wholesale fruit sales have already dropped by 20 to 25 percent over the past two to three days, Islam said.

Bangladesh's fruit imports, as reflected in the opening of letters of credit (LCs), fell by 8.5 percent year-on-year to $107 million in the July-November period of fiscal year 2024-25.

The settlement of the LCs also declined during the period, according to Bangladesh Bank data.

The Consumers Association of Bangladesh last Sunday urged the government to refrain from implementing the SD hikes until the end of Ramadan, warning that otherwise, it would worsen the financial struggles of low- and middle-income families.​

 

[Saif]

Rural women must be recognised for their contribution

Gender discrimination in rural areas across Bangladesh continues to be a formidable barrier to both social and economic development.

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Rural women must be recognised for their contribution

Rural women are nation builders; they’re the backbone of our rural economy. File photo: SK Enamul Haq

Gender discrimination in rural areas across Bangladesh continues to be a formidable barrier to both social and economic development, particularly in the agricultural sector. Despite their critical roles in farming, processing, and post-harvest activities, rural women face entrenched inequalities in wages, opportunities, and recognition. As Shahnaz Begum, a farmer from Khulna, poignantly states, "We work just as hard as men, but the pay is never the same. While men often earn up to Tk 200 per day, women receive Tk 70 for similar work."

This wage disparity reflects a broader trend in which rural women are disproportionately affected by social, cultural, and economic inequalities. According to a 2023 report by the Bangladesh Bureau of Statistics (BBS), gender pay gap remains a significant issue in rural areas, with women in agriculture earning an average of 30-40 percent less than their male counterparts for the same work. The report further emphasises that women in rural Bangladesh perform up to about 60 percent of the labour in agriculture, but remain largely invisible in leadership and decision-making roles.

Despite their significant contributions to the agricultural economy, rural women are often marginalised. They are excluded from access to land, credit, and technology—resources that are essential for improving productivity and achieving economic independence. According to a 2022 Oxfam study, only 13 percent of rural women in the country own land. This lack of access to land and resources limits women's ability to invest in farming and start their own businesses. "I've never been able to buy land or take a loan without my husband's signature," shares Laila, a rural entrepreneur from southwestern Bangladesh. "Without access to resources, how can we grow our businesses or improve our lives?"

Sexual harassment in rural workplaces is another pervasive issue that compounds these challenges. A 2021 study by ActionAid found that 45 percent of rural women in South Asia, including Bangladesh, experience harassment in the workplace. However, many women remain silent due to fear of retaliation and lack of support. One such case is Ayesha, a farm worker from Satkhira, who was forced to quit her job after facing harassment from her supervisor. "I couldn't keep quiet anymore, but no one supported me," she recalls. "I had no choice but to leave." This type of harassment not only undermines women's well-being, but also has long-term economic consequences, as they are forced to withdraw from the workforce.

The implications of such gender-based discrimination are far-reaching, not just for individual women but for the economy at large. According to McKinsey, closing gender gaps in labour markets could add $12 trillion to the global economy. In Bangladesh, where agriculture employs over 40 percent of the workforce, advancing gender equality in rural areas could significantly boost national productivity and reduce poverty. As Hasina, a leader of a rural women's cooperative in Satkhira, says, "If we had equal opportunities, we could improve not only our families but also our communities." Women's economic empowerment can lead to the development of rural economies, better health outcomes, and improved quality of life for all.

Addressing these inequities requires robust policy interventions. The government must prioritise wage transparency and enforce equal pay for equal work in rural sectors. Furthermore, rural women must have equal access to land, credit, technology, and training to improve their productivity and economic independence. "We need financial independence," says Rina, a small-scale farmer from Jashore. "Only then can we break the cycle of poverty." Providing women with access to microfinance and ensuring that they can take out loans without the need for male co-signers would empower them to invest in their farms or start small businesses, ultimately improving their families' living standards.

Encouraging women to take leadership roles in rural cooperatives and agricultural enterprises is another vital step in addressing gender inequality. As Salma, a rural cooperative leader, aptly puts it, "Gender equality is the foundation of a prosperous Bangladesh. We cannot afford to leave women behind." By addressing gender discrimination in rural workplaces, Bangladesh can harness the power of its women to drive sustainable economic growth, reduce poverty, and improve the quality of life for all its citizens.

Furthermore, addressing the issue of sexual harassment in rural workplaces is crucial for creating safe and supportive environments for women. The government must establish and enforce clear legal frameworks to prevent harassment, ensure women's safety, and encourage reporting of such incidents without fear of retaliation. Local authorities and rural development programmes must work closely with women's organisations to create awareness and provide support for victims of harassment.

By addressing gender discrimination, we can unlock the potential of millions of women, enabling them to contribute to a more equitable, prosperous future. Gender equality in rural Bangladesh is not merely a goal—it is a necessity for the nation's development.

Md. Al-Mamun is social scientist at BRAC Institute of Governance and Development (BIGD).​

 

[Saif]

Potato imports facilitated despite massive price fall

The National Board of Revenue (NBR) has allowed the use of nine more customs stations for the import of potatoes, specifically from Nepal and Bhutan, aiming to diversify supply sources and reduce dependency on India..The nine stations include Rohonpur in Chapainawabganj, Sonahat in Kurigra

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Potato imports facilitated despite massive price fall

Potato growers will suffer severely if the government continues to allow imports as the country saw massive production this year, farmers said. Photo: Md Quamrul Islam Rubaiyat.

The National Board of Revenue (NBR) has allowed the use of nine more customs stations for the import of potatoes, specifically from Nepal and Bhutan, aiming to diversify supply sources and reduce dependency on India.

The nine stations include Rohonpur in Chapainawabganj, Sonahat in Kurigram, Dhanua Kamalpur in Jamalpur, Nakugaon in Sherpur, Gobrakura and Karaitoli in Mymensingh, and Tamabil, Zakiganj, and Sheola in Sylhet.

Earlier, potato imports were allowed through four customs stations, including Benapole and Bhomra.

This facility will remain in effect till March, according to a gazette issued on Monday.

Traders had sought the initiative last December, when prices of the tuber reached a record high of Tk 80 per kilogramme amidst a usual drop in stocks ahead of the harvest season between February and April.

Now the facility will have little effect as prices have fallen by a massive margin across the country, and farmers fear massive losses amid bumper harvests.

Azizul Islam, who heads a farmers' association in Dinajpur, expressed his frustration at the NBR's move.

"Why is the government still allowing imports now, when potatoes are available at cheap rates in Bangladesh?" he asked.

Islam, who hails from Gopalganj village in Dinajpur sadar upazila, highlighted the plight of local farmers.

"There has been massive production this year, and there aren't enough buyers… If the government continues to allow imports, farmers will suffer severely," he warned.

Potatoes in Dinajpur are currently being sold at Tk 13 per kilogramme (kg) at the fields and around Tk 15 per kg at retail markets.

"If farmers are forced to accept such low rates, they won't recover even the money spent on potato seeds, let alone make a profit amidst rising labour and land costs," he said.

Islam urged the government to immediately halt potato imports and support farmers through state purchases.

"The government must prioritise farmers and take the necessary steps to safeguard their livelihoods," he stressed.

Regarding the time taken for the facility to come about, Kazi Mostafizur Rahman, an NBR member of international trade (currently in charge), said, "The NBR took the move based on businesses' demand when the prices were high."

"But we received the official request to extend new routes from businesses at the end of December. We needed 20-22 more days for processing as we had to conduct vetting on this issue," he said.

This year, acreage increased to a record high of 5.21 lakh hectares of land.

Annual demand stands at 85 lakh tonnes to 90 lakh tonnes, whereas harvests amount to around 106 lakh tonnes.

In fiscal year 2023-24, 1.5 lakh tonnes were imported from India.​

 

[Saif]

Govt exploring multiple sources for rice import

Interim government’s food adviser Ali Imam Majumder said that the government was prioritising trade over politics, welcoming imports from neighbouring countries like India, Myanmar, and Pakistan due to their proximity and lower costs...

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Govt exploring multiple sources for rice import
Staff Correspondent . Chattogram 21 January, 2025, 23:00

Interim government’s food adviser Ali Imam Majumder said that the government was prioritising trade over politics, welcoming imports from neighbouring countries like India, Myanmar, and Pakistan due to their proximity and lower costs.

He made the remarks on Tuesday while inspecting the unloading operations of imported food grains at Chattogram Port.

Earlier on the day, he visited the under-construction silo in the city’s Patenga area.

He said, ‘We have signed a contract to import 100,000 tonnes of rice from Myanmar, and they are ready to sell more. We will evaluate their internal supply situation before proceeding further. Additionally, we have arranged to import 50,000 tonnes of rice from Pakistan and are exploring other sources, including Vietnam.’

On the total amount of rice being imported, Ali Imam Majumder said, ‘We aim to bring in 800,000 to 900,000 tonnes of rice. Of this, around 800,000 tons will be imported through government channels from India, Myanmar, Pakistan, and possibly Vietnam.’

When asked about the persistent high rice prices despite continuous imports, Ali Imam Majumder said, ‘The good news is that price hikes have stopped. The price of coarse rice has dropped by Tk 3-5 per kilogram. We will continue to import more, ensuring no further price increases and creating scope for price reductions.’

With Ramadan approaching and concerns over potential price hikes of food items, Ali Imam Majumder said, ‘During Ramadan, the Ministry of Food primarily oversees the supply of rice and wheat. Other items are managed by the Trading Corporation of Bangladesh, under the Ministry of Commerce, which has taken extensive preparations.’

‘To support low-income groups, food-friendly programmes for 5 million people have been launched. These individuals can buy 30 kilograms of rice per month at Tk 15 per kilogram. Additionally, from this month, two metric tonnes of rice are being sold daily at the upazila level, a practice that will continue during Ramadan. We hope these measures will keep commodity prices stable.’

During the visit, Chattogram divisional commissioner Md Ziauddin, director general of food Abdul Khaleque, and Chittagong Port Authority chairman SM Moniruzzaman were also present.​

 

[Saif]

Relay cropping answer to coastal farming

The coastal region of Bangladesh makes up about one-third of the country's total land area, of which approximately 439,000 hectares (almost 1.1 million acres) remains fallow during the dry season due to increased salinity and inadequate irrigation facilities. Aman rice is the only crop cultivated t

thefinancialexpress.com.bd

Relay cropping answer to coastal farming
Atiqul Kabir Tuhin
Published :
Jan 22, 2025 22:03
Updated :
Jan 22, 2025 22:03

A farmer is seen sowing wheat seeds in an Aman field as part of relay wheat cropping in Patuakhali's Kalapara upazila Photo : Collected

The coastal region of Bangladesh makes up about one-third of the country's total land area, of which approximately 439,000 hectares (almost 1.1 million acres) remains fallow during the dry season due to increased salinity and inadequate irrigation facilities. Aman rice is the only crop cultivated there during the monsoon season. After the Aman rice harvest in December, these vast tracts of land, particularly coastal regions remain fallow for 6-7 months. To bring this extensive barren land area under cultivation, Independence Award-winning agricultural researcher Dr. M. G. Neogi, in collaboration with the Australian Center for International Agricultural Research (ACIAR), has developed a unique relay wheat cropping model that deserves policymakers' attention for wider adoption.

In conversation with this scribe, Dr. Neogi said, "It is possible to turn the single-crop land in coastal areas into double-crop or even possibly triple-crop land by using relay wheat cropping method." Dr. Neogi and his team have been working on the relay wheat cropping model in Bangladesh's coastal regions since 2017.

Relay cropping involves planting a second new crop in same land while the first crop is still in the field with its mature stage. As wheat and pulses can be grown with minimal irrigation and wheat exhibits some degree of salinity tolerance, the researchers figured out that wheat could be the ideal for relay cropping in these vast areas of fallow land. But here lies a problem.

Typically, cooler temperature, below 15°C, is ideal for wheat cultivation. Such an ideal cool weather condition for wheat crop production is available in coastal Bangladesh only during the later half of December and January. Therefore, the optimal sowing time for wheat in coastal Bangladesh is mid-November. But coastal lands remain covered by Aman paddy in November, which farmers harvest in December. To overcome this challenge, Dr. Neogi suggests sowing wheat seeds directly into the Aman paddy fields during mid-November, when paddy plants are in their matured stage. This is called relay wheat cropping model.

This method enables wheat cultivation without disturbing the standing rice crop. Moreover, this allows the wheat crop to grow during the favourable cool weather conditions of January.

Regarding potential damage to wheat seedlings during rice harvesting, Dr. Neogi said, "Farmers can harvest rice using traditional sickles without harming the wheat seedlings growing within the rice field. Typically, coastal farmers harvest rice by cutting the stalks approximately six to seven inches above the ground level, which would ensure the safety of the emerging wheat seedlings." Moreover, as he said, "Research has shown that even mechanical harvesters can be used without causing significant damage to the wheat seedlings. Observations have shown that wheat seedlings can recover quickly within two to three days after the rice harvest is completed."

Numerous farmers in Barguna and Patuakhali have successfully implemented this method, and they are pleased to have an additional profitable cash crop with minimal production costs. Relay technology significantly reduces expenses by eliminating the need for ploughing. Furthermore, wheat cultivation requires considerably less water for irrigation. With the relay cropping method, farmers can minimise water usage to just three to four light irrigations. Additionally, unseasonal rainfall between November and February, driven by climate change, further decreases irrigation needs.

Dr. Neogi's research has shown that in relay wheat planting, the cost per bigha is approximately Tk. 5,000, (Tk. 37,500/ha) yielding about 400 kg (3 t/ha) of wheat. At a market price of Tk. 40 per kg, the total income is Tk. 16,000/bigha (Tk. 120,000/ha). If relay wheat cultivation is expanded to the 439,000 hectares of fallow land of the coastal region in dry season, it could potentially yield 1.3 million tonnes of wheat, which could go a long way in fulfilling the country's growing demand for wheat.

Currently, Bangladesh requires 7.5 million tonnes of wheat annually but produces only 1.1 to 1.2 million tonnes domestically. This shortfall of 6 to 6.5 million tonnes is met through imports, resulting in a significant outflow of foreign currency. Against this backdrop, Dr. Neogi's research and practical field studies have shown that wider adaptation of relay wheat cropping can open up a vast horizon to explore the potential for cultivating wheat in coastal saline lands.

Moreover, relay wheat cropping can help mitigate rising soil salinity. The extended periods of unused coastal land contribute to increased soil salinity due to capillary action, where salt moves from deeper soil layers to the surface. Since relay cropping minimises soil exposure and reduces capillary action, it could mitigating salinity buildup. On March 6, 2024, a field study conducted by the Soil Science Department of Agricultural University, Gazipur demonstrated this effect. Soil salinity levels in a relay wheat plot were found to be significantly lower (5.48 decisiemens per metre) compared to adjacent fallow land (9.63 dS/m), indicating that relay cropping not only enhances crop yields but also improves soil quality by reducing salinity.

The reduced salinity levels resulting from relay wheat cultivation can open up the possibility of cultivating a third crop - Boro rice - after the wheat harvest. Farmers are currently exploring the cultivation of short-duration late Boro rice varieties, such as Binadhan-14, following the relay wheat harvest. Thus the successful implementation of relay wheat cropping can transform vast stretches of coastal single-crop land into a triple-crop one. This will not only benefit coastal farmers but also contribute significantly to the country's food security.

Regarding irrigation management, Dr. Neogi said, "Salinity is a significant challenge for crop cultivation during the dry season in the coastal fallow lands, along with insufficient irrigation water. Studies have shown that the water table just below the surface of these saline lands is also saline and unsuitable for irrigation. However, deeper groundwater sources, typically found at depths exceeding 1,000 feet, are generally salinity-free and suitable for both irrigation and consumption."

Submersible pumps can be used to lift water from these deeper depths. The cost of acquiring and installing a complete pump system, including the borehole and necessary fittings, is approximately 1.5 lakh taka. However, a single pump can effectively irrigate 50 bighas of land, enabling the cultivation of wheat and other Rabi crops using relay cropping techniques. Moreover, the wells will also provide access to safe drinking water for the local community throughout the year.

It is, therefore, hoped that policymakers would consider the issue and actively support the wider adoption of this cropping method by providing necessary resources, training, and incentives to farmers.​

 

[Saif]

Except for tourism, tulip in Tetulia shows little prospect

In addition to its lush tea gardens and the breathtaking view of the majestic Kanchenjunga, blooming tulips have emerged as another jewel in Panchagarh’s winter landscape -- but only as a tourist attraction, as farmers struggle to maintain cultivation and earn a profit.

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Except for tourism, tulip in Tetulia shows little prospect

According to tulip growers and agricultural officials, the country’s weather and soil are not suitable for the cultivation of this flower, which mainly grows in southern Europe and central Asia. Photo: Md Quamrul Islam Rubaiyat

In addition to its lush tea gardens and the breathtaking view of the majestic Kanchenjunga, blooming tulips have emerged as another jewel in Panchagarh's winter landscape -- but only as a tourist attraction, as farmers struggle to maintain cultivation and earn a profit.

According to tulip growers and agricultural officials, the country's weather and soil are not suitable for the cultivation of this flower, which mainly grows in southern Europe and central Asia.

Besides, tulip bulbs are scarce in Bangladesh, often requiring imports and careful preservation in controlled temperatures before planting.

This season, 13 female farmers from Tetulia's Darjeepara and Sharialjoth villages planted 20,000 tulip bulbs on a collectively contributed 70-decimal plot. This is half of the 40,000 bulbs planted in 2022.

In that year, eight farmers in Tetulia first cultivated the flower in the upazila under a pilot project of the Eco-Social Development Organisation (ESDO), a non-governmental organisation.

ESDO initially imported the bulbs from the Netherlands. However, some of the bulbs planted this season were preserved from the previous year's yield.

"After consulting with an agro-expert from the Netherlands, we experimentally preserved 3,000 locally produced bulbs in a cold storage facility, maintaining a temperature of 4 degrees Celsius. These bulbs were taken out at the beginning of the current winter season and planted in the field," said Aynul Haque, project supervisor and head of inclusive microfinance at ESDO.

However, Haque told The Daily Star that the locally preserved bulbs failed to bloom properly or exhibit adequate growth.

Tamanna Ferdous, upazila agriculture officer of Tetulia, said that Bangladesh's weather is generally not conducive to tulip cultivation, but Tetulia's winter temperature, which hovers around 20 degrees Celsius during the day, allows the flowers to bloom successfully.

She said that acidic, sandy-loamy soil with a pH between six and seven is ideal for growing tulips, which require daytime temperatures below 20 degrees Celsius and night-time temperatures between 5 and 12 degrees Celsius.

She added that soil preparation involves limited use of chemical fertilisers and sufficient organic manure.

Farjana Nasrin Khan, head of the Floriculture Division at the Bangladesh Agricultural Research Institute, told The Daily Star that tulip cultivation in the country faces several challenges. Unlike traditional cut flowers, the potential of tulip cultivation here is more closely tied to tourism.

"People prefer to purchase tulips before they bloom, but locally cultivated tulips tend to bloom prematurely due to higher-than-required temperatures," she explained.

Moreover, there is no viable way to reuse locally preserved bulbs because of weather constraints. "After blooming, the bulbs require at least a month under optimal temperature conditions to mature properly for preservation, which is not feasible in the local climate," she added.

Md Shahid Uz Zaman, executive director of ESDO, said that in recent years, many visitors from different parts of the country have come to Tetulia to catch a glimpse of Kanchenjunga, the world's third-highest mountain peak.

"If tulip cultivation proceeds in Tetulia as planned, it could become an additional attraction for tourists and boost the northern region's tourism sector, ultimately improving the lives of the locals," he said.

As winter lasts for about four months in Tetulia, the temperature is almost ideal for tulip cultivation, he added.​

 

[Saif]

Aromatic rice production nearly doubles in seven years

10.23 lakh tonnes of aromatic rice was produced in FY24, up from 5.79 lakh tonnes in FY18

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Aromatic rice production nearly doubles in seven years
10.23 lakh tonnes of aromatic rice was produced in FY24, up from 5.79 lakh tonnes in FY18

The production of aromatic rice has nearly doubled in Bangladesh over the past seven years, with farmers showing interest in growing the grain in order to profit from its higher prices compared to traditional parboiled rice.

Farmers produced 5.79 lakh tonnes of aromatic rice in the fiscal year 2017-18, while the amount produced in the fiscal year 2023-24 was 10.23 lakh tonnes, according to a food ministry document.

Mohammad Khalequzzaman, director general of the Bangladesh Rice Research Institute (BRRI), said exports are the main reason for increased cultivation.

The government allowed exports of premium quality rice a few years ago.

As a result, many farmers focused on producing aromatic rice, which led to a significant rise in production, he added.

Khalequzzaman further stated that another reason for the expansion of aromatic rice cultivation is that this variety of grain provides better yields and is tastier compared to local varieties.

Aromatic rice is cultivated in various districts of the country, with the same variety often being referred to by different names depending on the region. This type of rice is grown during the Aman season.

BRRI data shows that 33 types of aromatic rice are currently being cultivated in Bangladesh.

An official of the food ministry said rising demand in both local and international markets, coupled with attractive prices for aromatic rice, motivated farmers to expand cultivation in recent years.

As such, traditional indigenous varieties are being overshadowed as farmers shift to those offering double the yield and higher profitability.

While local varieties typically produce 187 to 299 kilograms (kgs) of rice per bigha, high-yielding varieties can produce between 448 and 821 kgs per bigha.

The Department of Agricultural Extension (DAE) reports that the country's climate and soil conditions are well-suited for cultivating aromatic rice.

Naogaon, Rajshahi, Panchagarh, Rangpur, Mymensingh, Dinajpur, Sherpur, and Thakurgaon are major hubs for the commercial production of aromatic rice in Bangladesh.

Another official of the food ministry said the demand for aromatic rice is rising due to improvements in the socioeconomic conditions of the country's population.

Due to this, farmers are becoming increasingly attracted to crops that offer good prices, leading to a near doubling of aromatic rice production in recent years.

Besides, even major corporate groups have entered the aromatic rice market.

But while production has grown rapidly, consumer demand has not kept pace, prompting many traders to urge the government to facilitate exports, the official added.

He also said the price difference between high-quality parboiled rice and aromatic rice is only Tk 10 per kilogramme, which is not favourable for farmers.

So, allowing limited exports could benefit farmers by providing them with higher returns, he added.

On the other hand, officials of the Food Planning and Monitoring Unit have cautioned against the potential downsides of exports.

One noted that as the availability of agricultural land in the country is shrinking, an increase in aromatic rice cultivation could lead to a decline in coarse rice production, negatively impacting the primary food supply.

"Therefore, a careful balance must be maintained," he added.

Food Adviser Ali Imam Majumder said: "We are currently importing a significant amount of rice; now is not the right time to export aromatic rice."

"If allowing limited exports benefits farmers, it would require approval from the highest levels of government. However, there has been no indication of such a decision so far," he added.

EXPORT OF AROMATIC RICE

As per data from the Export Promotion Bureau (EPB), export earnings from aromatic rice amounted to $2.88 million in the fiscal year 2019-20 before decreasing to $2.06 million in the next year.

In the fiscal year 2021-22, $1.07 million worth of aromatic rice was exported, but exports were halted in the following fiscal year, 2022-23, amid a ban.

In the fiscal year 2023-24, exports amounted to just $0.06 million.

The EPB reports also showed that no aromatic rice has been exported as of December in the fiscal year 2024-25.

AROMATIC RICE IMPORT HALTED FOR TWO YEARS

No aromatic rice was imported by Bangladesh in the fiscals 2023-24 and 2024-25, according to a document of the food ministry.

However, imports totalled 2.61 tonnes in the fiscal year 2022-23, 37.76 tonnes in the fiscal year 2021-22, and 54.14 tonnes in the fiscal year 2020-21, the document showed.

IMPORTS OF LONG-GRAIN BASMATI RICE DECLINE

The food ministry document also showed that in the fiscal year 2020-21, imports of long-grain basmati rice totalled 1,891 tonnes before rising to 6,334 tonnes in the fiscal year that followed.

The figure increased to 7,712 tonnes in the fiscal year 2022-23.

However, imports decreased to 4,615 tonnes in the fiscal year 2023-24 before dropping to just 799 tonnes in the fiscal year 2024-25.​

 

[Saif]

Farm, rural loans drop significantly

Farm and rural loan disbursements by banks fell by more than one-fifth in the first four months of fiscal year (FY) 2024-25, owing to a dip in the flow of credit mainly from foreign and private banks.

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Farm, rural loans drop significantly

Farmhands cater to saplings of vegetables and flowering plants at Fulgach village in Lalmonirhat sadar upazila last week. Nearly half or 46 percent of the Tk 9,391 crore of farm loans given out by banks in the July-October period of fiscal year 2024-25 went towards the facilitation of crop production, according to data of Bangladesh Bank (BB) in its October issue on agriculture and rural finance. Photo: Dilip Roy

Farm and rural loan disbursements by banks fell by more than one-fifth in the first four months of fiscal year (FY) 2024-25, owing to a dip in the flow of credit mainly from foreign and private banks.

Banks lent Tk 9,391 crore in the July-October period of this fiscal year, according to data of Bangladesh Bank (BB).

It was Tk 11,960 crore in the same period a year ago.

The BB attributed the downturn to a reduction in loan disbursements by foreign commercial banks.

In figures, their disbursements were down by 76.5 percent year-on-year.

Meanwhile, disbursement by private banks declined 29 percent.

State banks' agricultural and rural credit disbursement also fell.

Only state-owned specialised banks expanded lending to the farm and rural economy.

The banks as a group disbursed 12 percent more loans, said the BB, adding that it had no significant impact as the overall fall was high.

The BB data showed that farm and rural credit disbursement was one-fourth of the lending target of Tk 38,000 crore for the banks in FY25.

This target was 8.57 percent higher than that of the previous year.

The central bank report said nearly half—46 percent of farm loans given in the first four months of this fiscal year—went to facilitate crop production.

The share of the total credit disbursed for the crop sector was 45 percent a year ago.

The livestock and poultry sector increased its share from 24 percent to 25 percent, alongside the fisheries sector from 15 percent to 17 percent.

Conversely, the share for poverty alleviation initiatives decreased from 7 percent to 4 percent.

"These changes indicate a growing focus on crops, livestock & poultry, and fisheries, with a corresponding reduction in the emphasis on the poverty alleviation sector," said the BB, in its October issue of agriculture and rural finance.

The central bank said despite the decline in lending, recovery of agricultural credit grew 12.55 percent year-on-year to Tk 12,322 crore during July-October of FY25, buoyed by increased recovery by private banks and state-owned specialised banks.

The BB said at the end of October FY25, the outstanding balance of agricultural credit for all scheduled banks was Tk 55,084 crore, reflecting only a 0.40 percent increase from that a year ago.

However, the overdue amount of agricultural credit soared 40 percent to Tk 11,931 crore at the end of October 2024 from that a year ago.

The BB said the disbursement of agricultural and rural finance shows a stronger focus on crops, livestock, and fisheries.

"But the reduced emphasis on poverty alleviation programmes signals the need for a balanced approach," said the central bank.

It said overall credit recovery showcased an improvement, but the sharp rise in overdue loans, particularly in state banks, highlights challenges in repayment and recovery.

"Microfinance disbursement and recovery saw marginal declines, with overdue balances rising due to external shocks and operational inefficiencies," it said.​

 

[Saif]

Govt may lift ban on aromatic rice exports

The interim government may lift the ban on exports of fragrant rice to increase revenue and address the long-standing demand of the country’s business community to boost trade and enhance export earnings.

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Govt may lift ban on aromatic rice exports

The interim government may lift the ban on exports of fragrant rice to increase revenue and address the long-standing demand of the country's business community to boost trade and enhance export earnings.

A senior official of the Ministry of Food told The Daily Star on Sunday that local traders reported significant quantities of aromatic rice are being smuggled from Bangladesh to India.

"Some Indian exporters are then exporting this rice to other countries using their own branding, causing Bangladesh to lose its market," the official said, adding that local traders claim the current production of rice exceeds domestic demand.

There is significant demand for aromatic rice among non-resident Bangladeshis and people of Bangladeshi origin worldwide, according to exporters.

Government data indicates there are 7.5 million Bangladeshis living abroad, but if immigrants are included, the total reaches 9 to 10 million.

Additionally, people with South Asian and Middle Eastern backgrounds are also major consumers of aromatic rice.

In October 2023, the government of Bangladesh imposed an indefinite ban on rice exports, including both aromatic and non-aromatic varieties. The move was a precautionary measure aimed at safeguarding the nation's food security.

Before the ban, various businesses were exporting aromatic rice to around 136 countries, including the United Arab Emirates, Europe, the United States, the United Kingdom, Malaysia, Singapore, Brunei, South Korea, and European nations.

Bangladesh began exporting aromatic rice in the fiscal year 2009–2010 by shipping 663 tonnes.

Md Masudul Hasan, secretary at the Ministry of Food, informed The Daily Star on January 22 that a policy decision regarding the export of aromatic rice was made during a meeting of the Food Planning and Monitoring Committee.

However, he clarified that no official order had been issued, though he expressed confidence that it would be forthcoming. The secretary also noted that no final decision has been made regarding the price and quantity of rice to be exported.

These matters are still under discussion and will be decided by the technical committee, with a decision expected shortly.

Hasan emphasised that the government would not permit exports of large quantities of aromatic rice and assured that any export permission would be carefully regulated to avoid jeopardising the nation's food security.

When asked about the matter yesterday, Food Ministry Adviser Ali Imam Majumder told The Daily Star that although a policy decision regarding the export of aromatic rice was made during the FPMC meeting.

However, he added that final approval was yet to be granted.

"Some additional aspects are being examined. If everything is in order, the government will give final approval," he added.

WHAT EXPORTERS SAY

Eleash Mridha, managing director of PRAN Group, a leading food processor and exporter, told The Daily Star that if the government's decision is implemented, agro-processed food exports would flourish.

"Farmers will be encouraged to grow these varieties of rice. The production of aromatic rice in our country far exceeds its consumption, leading to a significant drop in prices," he said.

In February–March 2024, aromatic rice was selling at the retail level for a maximum of Tk 160 to Tk 165 per kilogram. However, it is now priced at Tk 120 to Tk 125 per kg, he added.

Mridha also warned that farmers would eventually stop growing aromatic rice if they could not benefit, ultimately impacting the economy.

Faria Yasmin, chief business officer of ACI Foods & Commodity Brands, welcomed the government's move, saying: "This will strengthen Bangladesh's brand image.

"Despite high demand, the ban over the past two years caused us to lose the international market, which has now been taken over by India and Pakistan," she said.

Yasmin cautioned that if exports were allowed and then suddenly banned again, it would lead to significant economic losses. "We urge the government to consider this matter carefully. Aromatic rice accounted for 40 to 50 percent of our total agro-processed food exports."

Another exporter, speaking on condition of anonymity, expressed hope that the government would soon grant export permission.

They also expect the export quantity to increase compared to previous levels and believe that the ground lost due to the export ban can be quickly made up.

EXPORT OF AROMATIC RICE

According to data from the Export Promotion Bureau (EPB), export earnings from aromatic rice hit $1.40 million in FY19 before increasing to $2.88 million in FY20.

However, earnings dropped to $2.06 million in FY21 before going down again to $1.07 million in FY22.

In FY23, the ban was imposed and exports plummeted to nil.

However, aromatic rice exports managed to bring in $0.06 million in FY24.

EPB data also shows that no aromatic rice had been exported in FY25 as of December.

Around 33 varieties of aromatic rice are cultivated in Bangladesh, according to the Bangladesh Rice Research Institute.​

 

[Saif]

Farmers forced to pay more than subsidised rates for fertiliser

Farmers in different parts of the country are being compelled to buy fertiliser, a key ingredient for crop production, by paying more than government-fixed prices.

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Farmers forced to pay more than subsidised rates for fertiliser

As transplantation of Boro season paddy is running in full swing, farmers across the country are being forced to pay over the odds for fertiliser as retailers cite a lack of supply. The higher prices of the key production input, alongside rising costs of pesticides and labour, are putting a strain on small growers. Photo: Kongkon Karmaker

Farmers in different parts of the country are being compelled to buy fertiliser, a key ingredient for crop production, by paying more than government-fixed prices.

This has posed a significant setback for farmers during the current Boro season, the biggest in terms of rice production volume.

Growers are being charged Tk 3 to Tk 4 more than the set prices for each kilogramme (kg) of chemical fertiliser, including urea, Triple Super Phosphate (TSP), Diammonium Phosphate (DAP), and Muriate of Potash (MOP), as dealers complain of supply shortages.

Take the case of Ajay Das and Liton Das, two small farmers from the Badhal union of Bagerhat.

They purchased urea fertiliser at Tk 30 per kg and TSP at Tk 35 per kg nearly three weeks ago, paying far more than the administered rates, which are Tk 27 per kg for both products.

Photo: Titu Das

Besides, they are supposed to get each kg of DAP for Tk 21 and MOP for Tk 20.

The subsidies are aimed at keeping production costs low, facilitating food production, safeguarding the nation's food security, and enabling consumers to afford food regardless of their income level.

But now, higher prices of key production inputs are putting a strain on businesses.

"It is increasingly difficult for small farmers like us to sustain the business among rising production costs," lamented Ajay, one of tens of thousands of growers who have seen their costs of production rise steadily over the years.

For example, labour costs with food stood at Tk 544 in June 2024, up from Tk 511 in July of the previous year, according to the Bangladesh Bureau of Statistics (BBS).

In 2023, the previous Awami League government hiked prices of urea, DAP, TSP, and MOP fertilisers by Tk 5 per kg, less than a year after it raised the administered rates by Tk 6 per kg.

For the current fiscal year, the government projects a total of 59 lakh tonnes of urea, TSP, DAP, and MOP will be required, up 3 percent from a year ago.

Chemical fertilisers are mainly used to grow dry-season rice, locally named Boro, which is harvested in May.

Of all the fertiliser that is required to grow Boro season paddy, farmers apply roughly 60 percent in the four months from December to March, a senior official of the agriculture ministry said.

However, many farmers are not getting fertiliser as required.

For instance, Md Mozibar Rahman, a farmer from Mistripara village in Dinajpur who is cultivating a six-bigha Boro field, could not purchase fertiliser from a dealer in his area as his stock had been sold out.

He had to turn to a retailer, paying Tk 1,550 for a 50-kg (Tk 31 per kg) bag of TSP and Tk 1,200 for 50 kg of DAP (Tk 24 per kg).

"The seller refused to provide a receipt against the purchase," Mozibar alleged, adding, "Farmers like us are struggling due to the high input costs of fertilisers, pesticides, and labour, while we continue to be denied fair prices for our crops."

Shariful Islam, a fellow grower who lives in Gobindapur village of the Biral upazila in the same district, shared a similar experience.

He said fertiliser prices usually spike during periods of high demand and limited supply.

"I recently paid Tk 3,500 for two bags of TSP, although the official price is Tk 2,700," he said.

He added that dealers in his area do not generally overcharge, but alleged that retailers charge more than set prices.

"We are compelled to buy fertiliser at higher rates as there is no alternative. The dealers often cite transportation costs or low availability as reasons for price hikes," said Gouranga Das, another farmer in Bagerhat.

However, Md Nazrul Islam, a fertiliser dealer in Pabna, said they are selling fertiliser to retailers in line with government prices. He alleged that retailers may be increasing prices a little bit to make some profit.

Although insiders said there is a shortage of DAP, the deputy directors of the Department of Agricultural Extension (DAE) in Dinajpur and Pabna denied that there is any fertiliser shortage.

"We are getting supplies from the Bangladesh Agricultural Development Corporation (BADC) as required. We are waiting," an official of the Bangladesh Fertilizer Association (BFA) said.

Md Jamal Uddin, the deputy director of the DAE in Pabna, said there is no scope for a fertiliser crisis during the Boro season.

Asked about the hike in fertiliser prices at the retail level, he said his office and local administration are continuing drives to keep the market under control during the peak of the cultivation season.

Farmers are accustomed to buying the entire stock of fertiliser for the Boro season when they start cultivation, which causes trouble later.

Contacted, Md Aminul Islam, the deputy director of the DAE's Dhaka office who is in charge of fertiliser management, said prices are not supposed to be higher than the rate fixed by the government. "We get such allegations occasionally and take action," he said.

The BFA official added that one of the reasons farmers are forced to pay more than administered rates is the low commission for dealers and transport costs.

"Dealers get only Tk 2 as commission plus transport costs. The commission was fixed in 2008 and has not been hiked even though we have repeatedly requested the government to do so."

Agriculture Secretary Mohammad Emdad Ullah Mian could not be reached for comment over the phone despite repeated efforts. BADC Chairman Md Ruhul Amin Khan could not be reached for comment either.​

 

[Saif]

Farmers block highway demanding withdrawal of increased VAT

Northern farmers on Wednesday staged a protest by dumping tomatoes on the Rajshahi-Dhaka Highway in Natore, demanding withdrawal of the increased value added tax and duty imposed on tomato and mango pulp...

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Farmers block highway demanding withdrawal of increased VAT
Staff Correspondent . Rajshahi 29 January, 2025, 22:22

Farmers block Rajshahi–Dhaka Highway by dumping tomatoes on the road, demanding withdrawal of the increased VAT and duty imposed on tomato and mango pulp, in Natore on Wednesday. | Focus Bangla photo

Northern farmers on Wednesday staged a protest by dumping tomatoes on the Rajshahi-Dhaka Highway in Natore, demanding withdrawal of the increased value added tax and duty imposed on tomato and mango pulp.

Several hundred of them from Rajshahi, Natore, and Chapainawabganj districts blocked the highway in the Belgharia Bypass area, bringing the traffic on the highway to a standstill for half an hour.

The agitating farmers said that the government had recently increased VAT on processed pulp from 5 per cent to 15 per cent for tomatoes, mangoes, and other fruits, leading processing companies to abruptly stop purchasing tomatoes from farmers.

‘As the processing companies stop purchasing tomatoes, we – the growers – cannot sell our tomatoes, causing the seasonal crop to rot in the fields,’ said Iftikhar Alam Munna, a tomato farmer from Godagari upazila in Rajshahi.

He said that the government decision to increase VAT on tomato and mango pulp would negatively impact marginal farmers as the price of tomatoes decreased to Tk 3-5 per kilogramme on local markets.

Another farmer, Md Babu of Natore Sadar upazila, said that tomato growers would incur a huge loss this season as they would not be able to cover the half of their production cost due to drop in prices of the crop.

Participating in the protest, trader Saddam Hossain said that the VAT increase would reduce consumer demand and harm small and medium enterprises in the sector.

‘Rising electricity and gas prices, along with currency market instability, have already put immense pressure on the agricultural processing sector. If the VAT hike continues, it will become even harder for lower- and middle-income families to afford food products,’ he said.

The speakers urged the government to withdraw the increased VAT on the processed pulp, and threatened that they would go for a tougher movement if the government failed to meet their demand.

According to the Department of Agricultural Extension, tomatoes have been cultivated on 5,360 hectres of land this season in the Rajshahi region, comprising Rajshahi, Natore, Naogaon and Chapainawabganj districts.​