The government's spending on fertiliser subsidy would stand at Tk 280 billion this fiscal year (FY) due to the unusual price hike of the agriculture input in the global market, Agriculture Minister Dr Muhammad Abdur Razzaque said on Saturday.
The subsidy would then increase nearly four times in 2021-22 as compared to Tk 77 billion provided in FY 2020-21, according to his ministry.
In FY '19 and FY'20 the amounts of farm subsidies were Tk 76.9 billion and Tk 71.8 billion respectively against an allocation of Tk 90 billion for each of the years.
The minister said that the government has so far estimated a subsidy of Tk 190 billion while Tk 90 billion more would be required until June 2022.
Apart from fertiliser and fuel, the hike in shipping and transportation costs have also been playing a crucial role in increasing the cost of inputs, he said while addressing a debate about 'a shadow parliament'.
"However, the subsidy will continue so that the farmers get necessary inputs at previous rates and can maintain the production growth," he said. "We'll keep the domestic prices of fertiliser static by providing subsidies to keep the production side sound during this pandemic."
The Debate for Democracy organised the shadow parliament titled "The Government's Proper Initiatives to Ensure Safe Food" in the city.
Dr Razzaque said the government was working tirelessly to ensure safe food for all. "That is why the Safe Food Act was enacted and under which the Bangladesh Safe Food Authority (BSFA) was formed."
Work is underway to raise manpower and capacity of BSFA and to set up an international standard packing house and lab in Purbachal in Dhaka, he said.
Chairman of Debate for Democracy Hasan Ahmed Chowdhury Kiran placed a 10-point recommendation to ensure safe food, emphasising on proper implementation of the law and raising public awareness.
Debaters from BRAC University and Dhaka International University participated in the event.
According to the Department of Agriculture Extension (DAE), Bangladesh has an annual demand for 6.0 million tonnes of fertilisers, including nearly 2.8 million tonnes of urea.
The country produces nearly 1.1 million tonnes of urea while Bangladesh Chemical Industries Corporation (BCIC) imports 1.4 to 1.7 million tonnes annually to meet the local demand.
Global commodity portals show urea prices having crossed US$900 a tonne during the last two months in a steep rise from below $400 in July last year.
The rate was a maximum $300 a tonne in January last year, according to Index Mundi.
The price of DAP surged to $750 a tonne in January this year, which was below $ 430 a tonne one year ago, while TSP price increased to above $700 a tonne from a maximum of $340 a tonne one year back.
Additional secretary of agriculture Balai Krishna Hajra told the FE that the urea import cost was Tk 35 a kg one year back and it is minimum Tk 75 a kg now.
