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Agriculture still the lifeblood of the economy

Hiren Pandit
20 Dec 2021 00:00:00 | Update: 20 Dec 2021 13:50:36
Agriculture still the lifeblood of the economy

Agriculture is still considered the most important sector in the overall economic development of Bangladesh. Apart from providing food and nutrition to 160 million people of Bangladesh, the agricultural sector also provides raw materials for various industries. 14.1 percent of Bangladesh’s national income comes from agriculture and 42 percent of the people are employed in this sector. As a result, to ensure food supply for the growing population, improving living standards and creating employment, more attention should be paid to agriculture. From this realization, the Father of the Nation Bangabandhu made his agricultural policy completely farmer-friendly. Bangabandhu allocated Tk 103 crore out of Tk 501 crore in the first budget of Bangladesh for agricultural development. He called for a green revolution to increase production by identifying agriculture as a priority sector immediately after the formation of his government.

Bangabandhu’s government took steps to modernize and diversify agriculture and for the development of this sector took steps to rebuild the destroyed agricultural infrastructure, provide agricultural machinery, exempt land rent up to 25 bighas, fix a minimum fair price for important agricultural products. Bangabandhu realized that a thriving agricultural sector was a prerequisite for a self-reliant economy.

When Sheikh Hasina’s government was formed in 1996, there was a food shortage of about 4 million tons in the country. Therefore, one of the goals of the government was to make the country self-sufficient in food through the development of agriculture and farmers. She undertook many agri-friendly, groundbreaking activities. Such as fair pricing of fertilizers and agricultural products, availability of agricultural inputs, modernization of irrigation and water management, storage of seeds and food grains under government management, etc. As a result, the next five years saw tremendous success in the fields of development, economics and society.

In 2008 there was a food shortage of 2.6 million tonnes in the country. Immediately after taking charge, ‘Vision 2021’ was formulated according to the election manifesto ‘Din Badaler Sanad’ (Charter for changing days). Besides, utmost importance is given to agriculture and food production. The government decided to reduce the price of fertilizers. She took various steps including providing subsidies for agricultural mechanization, opening a bank account for farmers at Tk 10, increasing irrigation facilities, providing incentives in agriculture, restoring discipline in the fertilizer distribution system.

The government gave priority to agricultural research. As a result, there is an opportunity to conduct various researches including lab development in each Agricultural Research Institute. As a result, the total production of food grains (rice, wheat, maize) which was 328.95 lakh tonnes in 2008-09, gradually increased to 432.15 lakh tonnes in 2019-20. 731 high-yielding new varieties and 940 technologies for various crops have been introduced in the agriculture sector from FY 2008-9 to date, 55 varieties of rice have been created and introduced.

To modernize agriculture and make it more profitable the government took massive initiatives in the mechanization of agriculture. From 2010 to 2020, about 69,006 combined harvesters, cedar, power tillers and various agricultural pieces of equipment have been provided to the farmers. Recently, a project titled ‘Agricultural Mechanization’ worth about Tk 3,020 crore has been approved. To expedite mechanization, the government has been providing 60 per cent subsidy for the purchase of agricultural machinery to farmers in Haor and southern coastal areas of the country and 50 per cent for other areas. About 490 crore taka has been subsidized in this sector so far. As part of the government’s far-reaching plans, the Agricultural Mechanization Policy 2019 has been finalized, which provides for the purchase of interest-free agricultural machinery.

The government has strengthened the trend of introducing digital (e-agriculture) to modernize the agricultural system across the country. A total of 499 Agricultural Information and Communication Centers (AICC), 16123 Agricultural Call Centers, YouTube, Agricultural Information Window and Farmer Friend Phone 3331, e-book, online fertilizer recommendation, e-irrigation service, farmer’s window, farmer’s digital address, radios and storm systems have been expanded.

Achieving the ‘Sustainable Development Goals and Objectives’ is not possible without increasing the productivity of agriculture. No achievement can be sustainable without eradicating poverty. Progress and transformation of agriculture reduce poverty the most. Increasing the per capita income of agricultural workers is one of the ways to reduce poverty. Agriculture is still a low-income sector, where 42 percent of the workforce is still employed. It is essential to shift productivity from agriculture to services and industry by increasing productivity.

The direction of that journey is the Sustainable Development Goals by 2030. Bangladesh has succeeded in achieving certain standards in all three indices to move from a least developed country to a developing country in the UN classification. Recently, even in the second phase, Bangladesh has done better in all the three indices in line with the continuous progress of the last 10 years. Bangladesh will be officially declared a developing country by the UN General Assembly in 2026, which will happen during the implementation of the 2030 Development Agenda. Following the path of these successes, Bangladesh is formulating a roadmap ‘Rupakalpa 2041’ to become a prosperous and developed country in 2041. Bangladesh’s second perspective plan 2021-2041 is being formulated based on ‘Vision 2041’.

Bangladesh is now a role model for the world in all aspects of development. Now our aim is to achieve the goal of sustainable development for all by 2030 and to become a developed country by 2041. There is a need to increase productivity, crop diversification and transition from subsistence farming to commercial farming. The benefits of commercial agriculture require the creation of small and large agri-entrepreneurs, expansion of agro-processing industries, creation of more opportunities for export of agricultural products, use of digital methods and development of the well-organized domestic market system, expansion of agricultural marketing department activities and strengthening agricultural market monitoring. We are hopeful that we will be able to reach that goal.

Our fight is multifaceted. The expansion of the industry is harming the natural environment, changing the climate. At the very moment when we are thinking about this determination to meet the global food demand, a great challenge has appeared in front of the world. With global warming and the negative effects of climate change, we are moving towards severe droughts, tidal surges and catastrophic floods. Developed countries have long been thinking about the negative effects of global warming. It is even bringing new changes in the system of agriculture and food production. We can look at agricultural planning in the developed world. According to various international development agencies, 8 per cent of the world’s population will move to urban areas by 2050.

Agricultural production has increased with the increased use of technology. Despite dramatic progress in the production of fish, fruits, vegetables and various crops, Bangladesh is lagging behind in agro-based industrialization. The export process, commercialization and diversification are also not gaining momentum. There are not enough packaging and processing opportunities. Due to poor management in the process of collection, storage and supply, a good portion of crops are being wasted. As a result, producers and traders are facing losses.

Bangladesh currently ranks tenth in seasonal fruit production. Bangladesh ranks third and fifth in the world in fisheries and aquaculture production, respectively. In the agriculture sector, the total value added in the 2018-19 fiscal year was 32 lakh 23 thousand 938 million taka, whereas, in 2004-05 fiscal year, the total value added was 8 lakh 16 thousand 236 million taka that are from 2004-05 to 2018-19 the value addition increased by 4 decimals.

 

Hiren Pandit is a Research Fellow, BNNRC. He can be contacted at hiren.bnnrc@gmail.com

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