Govt urged to instruct banks to open LCs to import pesticides

In order to maintain the country’s food security, Bangladesh Crop Protection Association (BCPA) has urged the government to instruct all commercial banks to open letters of credit (LCs) on a priority basis for the import of pesticides used in crop protection.

In a letter written to the commerce secretary, the organisation said banks are not opening LCs for the import of pesticides due to the dollar crisis and sought a remedy from the commerce ministry in this regard.

Pesticide importers and marketers say that through organic farming systems, farmers are producing toxin-free products by recycling organic materials and without using chemical fertilisers and pesticides during the recent years.

In many cases herbal pesticides made from neem leaves, bark, seeds, mahogany seeds, tobacco leaves, nishinda leaves are being used instead of chemicals, they said.

This information is substantiated by the import data also. According to the information of the Department of Agricultural Extension, 62,845 tonnes of pesticides were imported into the country in 2012 and 41,607 tonnes in 2013 while in 2014, pesticide import was 39,253 tonnes.

Meanwhile, in 2011, 44,423 tonnes of pesticides worth Tk 755 crore were used across the country. By 2020, the use of pesticides has come down to 37,422 tonnes, with a monetary value of Tk 673 crore. In the letter written to the commerce ministry, BCPA said that in recent times, various commercial banks have shown reluctance to open LCs for the import of pesticide products.

The letter said that due to the ongoing dollar crisis, pesticide companies have not been able to import pesticide products as per demand for the last four months. As a result, a shortage of pesticides, needed for crop protection from various types of pest attacks, will be created in the upcoming Boro season.

Importers fear that failure to ensure the availability of essential pesticides at the farmer level at the right time can lead to fatal crop losses and the impact of which will increase the price of food products and seriously disrupt the country’s food security.

It should be noted that Prime Minister Sheikh Hasina has laid utmost importance on increasing agricultural production to maintain the food security of the country in the current critical global situation and has expressed fear of food shortage in the country if the desired crop production is disrupted in the current situation.

BCPA President M Saiduzzaman told The Business Post, “There will be a crisis if LCs are not opened on a priority basis. It will disrupt the desired crop production. For the overall welfare of the economy of agriculture-dependent Bangladesh, the government should instruct the banks to open LCs immediately.”

In this situation, he requested all government authorities concerned to give the necessary instructions.

According to BCPA sources, even in this time of dollar crisis, only a handful of multinational companies can open LCs using their influence, but others are not able to do so. As a result, other importing firms are left behind in competition with those multinational firms which will hamper the balance in the pesticide market. And the farmers will have to spend extra money.

Agriculturist Md Moazzem Hossain Palash said, “In order to maintain the country’s food security, cooperation of all authorities concerned is needed so that all commercial banks open LCs on a priority basis for the import of all types of pesticides used in crop protection.”