The government has proposed Tk 16,000 crore as subsidy for the agriculture sector which was Tk 4,000 crore more than the subsidy provided in the last fiscal year.
“To meet the expenditure of fertilizer and other agricultural incentives Tk 12,000 crore has been allocated in the revised budget of FY2021-22… Tk 16,000 crore has been allocated in the proposed budget for FY2022-23,” according to the budget document.
“We are providing high subsidies on agricultural machinery and fertilizers. 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,” said Finance Minister AHM Mustafa Kamal in his budget speech at the parliament on Thursday.
Despite the fact that fertilizer import prices have risen, we have not increased prices in the domestic market. In lieu of price increment, we have prioritized farmer welfare by expanding fertilizer subsidies, he added. The entire subsidy for fertilizers was estimated at Tk. 9,200 crore in the budget for FY2021-2022. However, compared to that May 2021, international prices 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 FY2021-2022 for all types of fertilizer is amounting to around Tk 12,000 crore. The government will provide Tk 16,000 crore as subsidy in the coming fiscal year.
In addition to providing subsidies to the agriculture sector, we offer incentives and rehabilitation aid to enhance productivity. Besides, a 20 per cent cash incentive for exports of agricultural products and a 20 per cent rebate on electricity bills are provided for the electricity use in irrigation pumps, Kamal elaborated.
