Home ›› 09 Nov 2021 ›› Front
Following the diesel price hike, irrigation cost for the next Boro season is likely to shoot up by around 15 per cent while the cost of farming as well as harvesting and transport may climb by 10 to 15 per cent.
The hike in fuel price will raise labour costs, thereby pushing overall agriculture production costs up.
Per hectare Boro cultivation cost may rise by Tk 5,000 over the average cost of Tk 72,000.
Experts said the price of all agricultural produce will go through the roof and the government might fail to meet the target of Amon rice procurement that has already got underway. The government last week set per kilogramme Amon procurement price at Tk 40.
However, Bangladesh Agricultural Development Corporation has set a plan to research and analyze how much production cost will increase this season and come up with recommendations for the government accordingly.
“It is difficult to give an idea without any research. But it is true that due to the fuel price hike, production cost will soar,” Md Ziaul Haque, member director (Minor Irrigation) of BADC, told The Business Post.
According to the BADC and the Department of Agricultural Extension, around 1.6 crore farmers are directly involved in the agriculture sector cultivating paddy, vegetables and cash crops.
Currently, most of the crops need irrigation. Even, cultivating Amon needs irrigation as well.
For irrigation there are 1.63 million shallow machines across the country while 1.26 million or 70 per cent of the total are run by diesel while the rest by electricity.
In addition, cultivating, sowing, applying pesticides, harvesting and transporting agricultural products are reliant on farming machinery solely run by diesel engine.
Sources said a Tk 15,000 is alone spent on irrigation to cultivate Boro in one hectare of land. Around 35 per cent goes for irrigation and agricultural mechanisation, with a total of around Tk 72,000 for Boro farming in per-hectare land.
“All types of machinery in the agricultural sector are powered by diesel. The fuel price hike will directly affect the sector. Per maund production cost may shoot up by Tk 100,” a BADC official said, preferring to remain unnamed.
According to the DAE, the government has planned to produce 2.8 crore Boro rice and the production cost will increase by at least 20 per cent due to the rise in fuel price.
“But hopefully it may not hamper our production target. The farmers got a good price in the last season,” AKM Manirul Alam, director (Field Wing) of the DAE, told The Business Post.
“But the growers may need a soft bank loan to help meet the target.”
Officials of the DAE and the BADC argued that to meet the domestic demand, Bangladesh is cultivating almost all kinds of vegetables round the year requiring huge irrigation. The new fuel price will directly affect vegetable farming too.
“So, it is very common that all kinds of vegetables’ price will subsequently go up in the market,” observed Manirul.
Experts said, for the new fuel price, Amon procurement programme may be hampered.
“The new fuel price will affect Amon harvesting. The government should adjust Amon procurement price to meet the target,” suggested Md Bodrul Hasan, former director general of the Directorate General of Food.
