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The Financial Express

Incentivising rice farmers 

| Updated: April 03, 2022 21:40:50


File photo used for representational image File photo used for representational image

Soaring prices of commodities worldwide have negatively impacted Bangladesh's agriculture, especially by increasing production cost of food grains. A 23 per cent hike in the price of diesel has triggered a spike in the costs of various agricultural inputs including fertiliser, irrigation and transportation by 15 to 18 per cent to the dismay of farmers. Obviously, such cost hike of inputs will add to the price of the food grains, especially, rice. The boro rice farmers, who were so upbeat about their upcoming harvest-to begin in the haors, beels and other low land areas within a week or two and elsewhere in the country in May-are now deeply worried. The reason is, according to an estimate, the total production cost of a kilogram (kg) of boro paddy will be more than Tk 28, whereas the procurement price of rice from farmers by the government has been fixed at Tk 27 per kg as before. It is going to be a disincentive for farmers unless the government reviews its procurement price for rice and paddy for this year.  

On the other hand, this increase in production cost risks affecting the existing market price of rice, which, though stable at the moment, is still on the higher side. So, the government will be required to handle the situation carefully in order to maintain rice price in the market steady while at the same time ensure that farmers get a fair price for their product of hard labour. The situation is indeed delicate. It is for the first time that farmers supported by the Department of Agricultural Extension (DAE) have, in terms of acreage, brought the highest amount of land under boro cultivation.  

According the DAE and the Bangladesh Bureau of Statistics (BBS) data, this season farmers have cultivated boro paddy on 4.96 million hectares of land. This is 3.76 per cent higher in acreage than the area of land cultivated last year. As expected, the DAE's production target of rice for this fiscal year (FY 22) is set at 20.9 million tonnes, which is 5.55 per cent higher than last year's yield. Notably, the BBS data further show that at 19.8 million tonnes, last year's was the highest recorded yield of boro rice until that time in the country. This is definitely great news so far as the nation's food security is concerned. 

At this point, it is important that the rice farmers are able to retain their interest in rice farming with equal vigour also in the coming years. So, to dispel the rice farmers' misgivings about having a fair price for their products, the government will be required first to cushion them against the fluctuations in input prices. This can be done by providing inputs like fertilisers, pesticides and irrigation water at a subsidised rate. On this score, strong monitoring would be necessary to ensure that the incentives or subsidies so arranged reach the farmers in need and not fall into the wrong hands. Second, the government's rice procurement prices should be reviewed from time to time in keeping with the current market price. Third, the government should ensure farmers' direct access to the market without the intervention of middlemen. With the required support in place, it is believed, farmers will continue to keep the country's food-grain market stable and the stock secure. 

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