File Photo
In the revised budget of the current (2023-24) financial year, the subsidy for the agricultural sector has been increased by Tk 8000 crore to Tk 25000 crore. In the original budget, 17 thousand crore rupees were allocated for this sector. This information is known from a report by the Ministry of Agriculture.
Besides, the government will spend Tk 600 crore for agricultural rehabilitation assistance in the budget of the current financial year. A senior official of the Ministry of Agriculture said, that mainly due to the increase in the price of fertilizers in the international market, devaluation of the Taka against the dollar, increase in shipping charges, and increase in the price of LNG, huge subsidy to be paid in the current fiscal year as well.
The official also said that an allocation of Tk 18,000 crore has been proposed for agricultural subsidy in the next financial year 2024-25. However, the Ministry of Finance will make the final decision on how much subsidy will be kept in this sector.
However, according to the Global Commodity Price Report (Pink Sheet) published by the World Bank, the price of fertilizers in the international market was quite low in February of this year compared to 2021, 2022, and 2023.
In February this year, the price of urea fertilizer per ton in the international market was $351.30. Besides, the price of DAP was $583.80 per tonne, TSP was $454.40 per tonne and MOP was $289.40 per tonne.
In April 2023, the government increased the price of Urea, TSP, DAP, and MOP fertilizers by Tk 5 per kg. At the farmer level, the price of Urea and TSP fertilizers has been increased from Tk 22 to Tk 27, the price of DAP has been increased to Tk 21 instead of Tk 16 and the price of MOP fertilizer has been increased from Tk 15 to Tk 20. At that time, the Ministry of Agriculture said that due to the abnormal increase in the price of fertilizers in the international market due to the global economic situation, the price of the product has been revised to keep the import of fertilizers at a reasonable level and to ensure the best use of fertilizers.
According to the information of the Ministry of Agriculture, the demand for 2.7 lakh tonnes of urea fertilizer has been determined in the country in the current financial year. Besides, there is a demand for TSP 7.5 lakh tonnes, DAP 16 lakh tonnes, and MOP fertilizer 9 lakh tonnes. Out of this, 10 lakh tonnes of urea, 1 lakh tonnes of TSP, and 1 lakh tonnes of DAP are produced in the country by Bangladesh Chemical Industries Corporation (BCIC).
In the current financial year till March 15, Urea 15.85 lakh tonnes, TSP 6.72 lakh tonnes, DAP 13.05 lakh tonnes, and MOP 10.34 lakh tonnes have been imported, the ministry said.
Analyzing the budget report of the Ministry of Agriculture, it has been found that every year the allocation for agricultural subsidy in the original budget is increased in the revised budget. However, this increase was highest in FY 2022-23. In the main budget of that fiscal year, 16,000 crore rupees were allocated to the subsidy sector; But at the end of the fiscal year, 26 thousand crore rupees were spent. In the main budget for the 2021-22 financial year, 9 thousand 500 crores have been allocated; At the end of the fiscal year, 12 thousand crore rupees were spent.
Most of the subsidy is spent on providing fertilizers at low cost to the farmers. Apart from this, 20 percent of the bill is subsidized for the irrigation that is done using village electricity in the agriculture sector. Apart from this, there is little subsidy for sugarcane cultivation.
In the budget of the current financial year, the government is planning to spend Tk 600 crore for agricultural rehabilitation assistance. Out of this, Tk 530 crore will be allocated for fertilizers, seeds, and seedlings. This assistance is given to encourage farmers to cultivate new varieties of seeds, to switch from one type of crop to another. And 70 crore rupees will be given as a grant. These grants are given to compensate the victims of drought, floods, storms, and floods. The government has spent 500 crore rupees in this sector in the financial year 2022-23.
Comment Now