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Experts have urged that the allocation for the agricultural sector in the next national budget for the fiscal year 2024-2025 should be more than 10 per cent to ensure food security.
The current budget allocations are significantly low compared to what is needed, considering that agricultural land in the country is decreasing at a rate of 0.5 per cent annually, while the population continues to grow.
Coupled with climate change, geopolitical tensions, and technological challenges, there is an urgent need to boost local agriculture and food production. As a result, the agriculture sector should receive greater emphasis in the national budget.
In the current fiscal year 2023-24, only 5.74 per cent of the total budget was allocated to the agriculture sector, which is less than half of the sector's direct contribution to the country's economy.
Over the last decade, the allocation to the agriculture sector has halved. In the national budget for the fiscal year 2013-14, the agricultural sector received 11 per cent.
Experts suggest increasing subsidies on seeds, fertilisers, and irrigation besides increasing the budget allocation for the agricultural sector. Additionally, they said that attention should be given to diversifying agricultural products, processing, increasing exports, research, innovation, and addressing the impacts of climate change.
In FY24, the budget allocation for the agriculture sector increased to Tk 43,700 crore. Of this, Tk 25,000 crore was allocated to the grain market, representing only 3.33 per cent of the total budget. The remaining 2.41 per cent was allocated to the ministries of Fisheries and Livestock, Environment, Forest and Climate Change, Land, and Water Resources.
In FY23, the allocation for the agriculture sector was Tk 33,698 crore, or 4.97 per cent of the total budget. In FY2020-2021, Tk 29,983 crore was allocated for the five ministries within the agriculture sector, with the Ministry of Agriculture receiving Tk 15,441.83 crore.
Officials from the Ministry of Agriculture have sent a proposal to the Ministry of Finance requesting more than Tk 25,000 crore for the Ministry of Agriculture alone. An allocation of Tk 18,000 crore has been proposed for agricultural subsidies in FY25.
Although specific details about the budget size for agriculture are not yet available, Agriculture Minister Dr Md Abdus Shahid indicated that a larger allocation than the current fiscal year has been proposed to increase agricultural production. He emphasised the need for innovation in new technologies to mitigate the risks associated with mechanisation and climate change.
He said, "Farmers at the grassroots level will gain the modern and strategic knowledge required for production, increasing crop yields and improving the country's food security."
Jahangir Alam, an agricultural economist and former vice-chancellor of the University of Global Village, criticised the reduction in agricultural allocations despite the overall budget increasing each year.
He believes the agriculture budget should exceed 10 per cent of the total budget.
Dr Binayak Sen, director general of the Bangladesh Institute of Development Studies (BIDS), noted that 40 per cent of the population is still directly dependent on agriculture.
He emphasised the need to prioritise agriculture in the next budget, highlighting the sector's importance for food security and the application of advanced technologies.
Kashmir Reza, president of a local NGO called Poribesh o Haor Unnoyon Sangstha, called for special attention to Haor agriculture in the budget.
He suggested developing short-term and water-tolerant rice varieties to protect Haor crops from sudden and early floods. Additionally, he recommended constructing submersible roads to transport crops from deep water areas and proposed a two-month fishing ban during the breeding season, with incentives for fishermen during this period to boost production.
