The government has worked out an action plan for 2022-23 fiscal for the agricultural sector to ensure food security as the world faces pressure in food production due to COVID-19 pandemic and Russia-Ukraine war.

The plan has been worked out in line with the National Agriculture Policy 2018, Agricultural Extension Policy 2020 and 8th Five Year Plan, according to an official document.

The main aspects of this action plan are to ensure country’s food security through increased production of all types of crops including paddy and maize; innovate adverse environment-tolerant crop variety and technology and to roll it out quickly, and develop and enhance the quality of their seeds using biotechnology, said the document obtained by UNB this week.

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The document highlighted optimum use of surface water and solar- powered irrigation, promotion of the production and application of organic fertilizers to safeguard soil health and issueing smart cards to all farmers in the action plan.

It said that the action plan includes prediction of weather through climate-smart agriculture and bolster e-agriculture activities.

Besides, in the just started fiscal year, the government will execute actions such as development assistance (subsidies) to keep agricultural input prices with fertilizer and seeds as low as possible at the farmer's level.

It will also make available agricultural machinery to the farmers in order to mechanise agriculture, extend ‘Synchronised Cultivation’ and collaborate in the production, storage and marketing of a variety of vegetables and fruits, including summer onions and
tomatoes.

As per the document, the government is providing high subsidies on agricultural machinery and fertilisers.

It said that Russia and Ukraine together play a dominant role in the global fertilizer supply chain. So, the fertilizer prices increased substantially in the international market because of the Russia-Ukraine crisis. Despite the fact that fertilizer import prices have risen.

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But the government has not increased prices in the domestic market.
In lieu of price increment, it has prioritised farmer welfare by expanding fertiliser subsidies.

The entire subsidy for fertilizers was estimated at Tk. 9,200 crore in the budget for 2021-2022 fiscal.

However, compared to that in May 2021, international price in May 2022 for TSP, DAP, and MOP fertilizers have gone up by 57 per cent, 47 per cent and 177 per cent respectively.

Under the circumstances, the overall subsidy in 2021-2022 fiscal for all types of fertilizer amounts to around Tk. 12,000 crore.

The government will provide Tk. 16,000 crore as subsidy in the running 2022-23 fiscal year.

In addition to providing subsidy to the agriculture sector, the government is offering incentives and rehabilitation aid to enhance the productivity.

Besides, the document said, a 20 per cent cash incentive for exports of agricultural products and a 20 per cent rebate on electricity bills is provided for the electricity use in irrigation pumps.

The government will continue disbursement of special agricultural credit at a concessional interest rate of 4 per cent for cultivating 24 crops including pulses, oil, spices, and maize in the running financial year.

For the purpose of investment in the agriculture sector, Bangladesh Bank adopts agriculture and rural credit policies and initiatives each year.

A total of Tk. 26,000 crore agriculture and rural loan was disbursed to 30.55 lakh small and marginalised farmers in fiscal year 2020-2021. In response to the pandemic, the government has lowered the interest rate on agricultural loans from 9 percent to 4 percent and allocated funds amounting to Tk. 19,500 crore as agricultural loans with a 4 percent concessional interest rate.

In addition to providing subsidy to the agriculture sector, the government is offering incentives and rehabilitation aid to enhance the productivity.