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Farmers fear Boro rice farming cost spiral

| Updated: December 19, 2021 15:09:05


Farmers fear Boro rice farming cost spiral

Dearth of fertiliser and a surge in costs of irrigation, plough and transport amid the diesel-price hike could deal a severe blow to Boro farming this season, discouraging many from cultivation, according to farmers and experts.

Production cost of Boro crop, which meets 56 per cent of the total rice demand in Bangladesh, might increase by 14-17 per cent this season, which could cause further hike in the staple prices, insiders in the sector say.

Higher prices of fertiliser than the government-fixed rates have put farmers in peril during this peak seedling and cultivation period of Boro paddy, farmers say.

Urea, Muriate of Potash (MOP), Triple Super Phosphate (TSP) and Diammonium Phosphate (DAP) are selling at 20 to 36-per cent higher prices than the government-set rates, claimed farmers.

Lutfar Mridha, a farmer at Sharsha in Jessore, told the FE that he bought 100 kilograms of urea for his two bighas of land at Tk 20 per kg, against normal price of Tk 16.

"I am now trying to source TSP and DAP for the Boro season but prices are much higher, and it is tough to get my required volume of the fertiliser as there is shortage in the union, " he says.

He said local sub-dealers were selling TSP at Tk 28-30 a kg against Tk 21-22 a kg, MOP at Tk 19-20 against Tk 15 a kg.

Mr Mridha guesses that fertiliser cost for per bigha (33 decimal) might surge to Tk 1950-2000 from Tk 1550-1600 last year.

Government intelligence is learnt to have recognised that fertilisers are being sold at much higher rates than the government-fixed prices.

The Special Branch (SB) report observed that country's required fertiliser could not be imported yet despite the passing of six months of the current fiscal year.

It has suggested taking punitive action against syndicates and unscrupulous traders for such wrongdoing, designed to cash in on high demand for the agriculture inputs.

The agency has suggested strict monitoring at the dealer-point in each union of the country to ensure that fertiliser is being sold at fixed prices.

It also feels the need for installing closed-circuit cameras in all fertiliser warehouses across the country.

Also advised are measures to ensure smooth transportation, security and proper preservation management for the government fertilizer warehouses.

The agency thinks that the authorities concerned should monitor possible smuggling as the prices of TSP, DAP and MOP in neighbouring India are higher than in Bangladesh.

Meanwhile, the diesel-price hike has also hit hard the farmers as the irrigation, ploughing and other input costs fueled up during this peak season of farming of the main paddy crop.

Farid Uddin, a farmer at Garidaha in Sherpur of Bogura district, says irrigation cost has surged to Tk 3,200 per bigha in his village after the hike in diesel prices. The charge was Tk 2,200 last year.

He says most of his fellow farmers have prepared their seedbeds already while many others began ploughing their paddies.

"Charge of diesel-run tractor increased to Tk 1400-1500 for ploughing land, from Tk 900-Tk 1000 last year," he said.

Bangladesh Agricultural Farm Labour Federation (BAFLF) secretary Golam Sarwar said apart from fertiliser, irrigation and ploughing, charges for seed, pesticides and other inputs increased notably, by 10-20 per cent.

Overall transportation costs have also got fuelled up, causing surge in other input costs.

"Our primary prediction showed paddy- production cost might increase by 14-17 per cent to Tk 27-28 a kg across the country this year, which was Tk 22-24 a kg last year", he says.

He urged the government to realise the current fertiliser shortage as a 'crisis' and manage required volume in no time.

"And those who are behind such shortage should be given capital punishment," he said.

Considering surge in cost of irrigation, ploughing and other inputs, he urged the government to give cash subsidy of Tk 60 billion to the farmers for the interest of both the peasantry and the common consumers.

Economist Prof Golam Hafeez Kennedy apprehends the surge in input costs might fuel up prices of rice staple further in coming months on the already-overheated market.

He thinks it might also discourage many farmers from Boro cultivation this year, which could cause a decline in production.

He urges the agriculture, commerce and food ministries to take immediate action plans to prevent any possible crisis regarding rice availability.

Farmers should be given logical subsidies within a short period of time while way for importing rice by the private sector should be opened to keep sound supply of the staple.

He also suggests that public procurement should be increased and must have to be fulfilled at any cost while food warehouses at least have 2.0 million tonnes of buffer stock of food-grains.

According to the agriculture ministry, the government has primarily fixed a target of production of 20.5 million tonnes of rice in 4.8 million hectares of land this Boro season.

Production of Boro was nearly 19.6 million tonnes in the FY'21, according to primary projection of the Bangladesh Bureau of Statistics (BBS).

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