The Crime Desk: In the revised budget of the current (2023–24) fiscal year, the subsidy for the agricultural sector has been increased by Tk 8000 crore to Tk 25000 crore. In the original budget, 17 thousand crore rupees were allocated for this sector. This information is known from a report of the Ministry of Agriculture.
Besides, the government will spend Tk 600 crore for agricultural rehabilitation assistance in the budget of the current financial year. A senior official of the Ministry of Agriculture said, mainly due to the increase in the price of fertilizers in the international market, the devaluation of the rupee against the dollar, the increase in shipping charges, and the increase in the price of LNG, huge subsidies have to be paid in the current fiscal year as well.
The official also said that an allocation of Tk 18,000 crore has been proposed for agricultural subsidies in the next financial year, 2024–25. However, the Ministry of Finance will take the final decision on how much subsidy will be kept in this sector.
However, according to the Global Commodity Price Report (Pink Sheet) published by the World Bank, the price of fertilizers in the international market was quite low in February of this year compared to 2021, 2022, and 2023.
In February of this year, the price of urea fertilizer per ton on the international market was $351.30. Besides, the price of DAP was $583.80 per ton, TSP was $454.40 per ton, and MOP was $289.40 per ton.
In April 2023, the government increased the price of urea, TSP, DAP, and MOP fertilizers by Tk 5 per kg. At the farmer level, the price of urea and TSP fertilizers has been increased from Tk 22 to Tk 27, the price of DAP has been increased to Tk 21 instead of Tk 16, and the price of MOP fertilizer has been increased from Tk 15 to Tk 20. At that time, the Ministry of Agriculture said that due to the abnormal increase in the price of fertilizers in the international market due to the global economic situation, the price of the product has been revised to keep the import of fertilizers at a reasonable level and to ensure the best use of fertilizers.
According to the information from the Ministry of Agriculture, the demand for 2.7 lakh metric tons of urea fertilizer has been determined in the country in the current financial year. Besides, there is a demand for TSP 7.5 lakh metric tons, DAP 16 lakh metric tons, and MOP fertilizer 9 lakh metric tons Out of this, 10 lakh metric tons of urea, 1 lakh metric tons of TSP, and 1 lakh metric tons of DAP are produced in the country by the Bangladesh Chemical Industries Corporation (BCIC).
In the current financial year till March 15, Urea 15.85 lakh metric tons, TSP 6.72 lakh metric tons, DAP 13.05 lakh metric tons, and MOP 10.34 lakh metric tons have been imported, the ministry said.
Analyzing the budget report of the Ministry of Agriculture, it has been found that every year the allocation for agricultural subsidies in the original budget is increased in the revised budget. However, this increase was highest in FY 2022–23. In the main budget of that fiscal year, 16,000 crore rupees were allocated to the subsidy sector, but at the end of the fiscal year, 26 thousand crore rupees were spent. In the main budget for the 2021–22 financial year, 9 thousand 500 crores have been allocated; at the end of the fiscal year, 12 thousand crores were spent.
Most of the subsidy is spent on providing low-cost fertilizers to the farmers. Apart from this, 20 percent of the bill is subsidized for the irrigation that is done using village electricity in the agriculture sector. Apart from this, there is little subsidy on sugarcane cultivation.
In the budget for the current financial year, the government is planning to spend 600 crore rupees on agricultural rehabilitation assistance. Out of this, Tk 530 crore will be allocated for fertilizers, seeds, and seedlings. This assistance is given to encourage farmers to cultivate new varieties of seeds and switch from one type of crop to another. And 70 crore rupees will be given as a grant. These grants are given to compensate the victims of droughts, floods, storms, and floods. The government has spent 500 crore rupees in this sector in the financial year 2022–23.
