Govt subsidies present to boost farmers’ profits

The government continues to help paddy farmers in a variety of ways to increase their output and, by extension, their profits, said Yusuf Rana Mondal, former additional director of the Department of Agricultural Extension (DAE), Bogura region.

"This fiscal year, the government has allocated Tk 28,000 crore for fertiliser subsidies, which is four times higher than the previous fiscal's Tk 7,717 crore," said the official, who was recently promoted to director of the DAE's plant protection wing in Dhaka.

He added the government is providing financial assistance in the form of subsidies for various types of equipment and machinery, as well as for fertilisers and electricity.

"For example, the government is offering combine harvesters to farmers at half the market price. In addition, farmers have the opportunity to purchase Muriate of Potash at a subsidised rate of Tk 15 per kg, whereas the market price is Tk 84 per kg."

Moreover, the government is also considering offering subsidies to farmers for the purchase of diesel before the next Boro season due to the escalating prices of fuel over the past few months, he said.

Asked about the high prices of seeds in the private market, Rana said, "Of the annual seed demand, farmers are able to produce up to 50 percent on their own, and the Bangladesh Agricultural Development Corporation supplies about 20 percent.

"While it's true farmers have to purchase 25 to 30 percent of their seeds from the private market, where they cost more, we do try to help the marginal farmers with some incentives."

He went on to say the government is trying its best to ensure maximum profit for paddy farmers.

"Although it is accurate to say that we do not have control over the market system, the only thing we can do now is offer farmers support to boost their agricultural output."

"In this regard, the Bangladesh Rice Research Institute is trying to develop new rice varieties, including hybrids," he also added.

Regarding farmers continuing to have a difficult time turning substantial profits even after receiving subsidies, Rana said, "The farmers are not in a particularly dire situation, but paddy alone won't help them achieve financial independence. A significant number of marginal farmers have separate jobs to supplement their income."