Tk17,000 cr earmarked as agriculture subsidy for FY25
Although the outlay of subsidy in the proposed budget has not been changed compared to the past fiscal. But it was later increased to Tk25,000 crore in the revised budget for FY24.
The government has allocated Tk17,000 crore as subsidy for the agriculture sector in the proposed budget for the fiscal year 2024-25 (FY25).
Finance Minister Abul Hassan Mahmood Ali today (6 June) informed the parliament about the allocation while placing the proposed national budget for the upcoming fiscal titled "March Towards Smart Bangladesh Following the Path of Sustainable Development".
"Allocation of Tk17,000 crore has been proposed as a subsidy to meet the expenditure of fertiliser and other agricultural incentives", according to the budget text.
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Although the outlay of subsidy in the proposed budget has not been changed compared to the past fiscal. But it was later increased to Tk25,000 crore in the revised budget.
"We are providing subsidies to encourage agricultural production which will remain in place in the near future. In addition to providing subsidies for fertilizers, mechanization is being promoted to increase agricultural production.
From 2010 to 2023, about 1.33 lakh agricultural machinery of various types have been supplied.
Additionally, under the development assistance, the process of supplying 51.3 thousand agricultural machinery to haor and coastal areas is underway", said the minister in his budget speech.
To keep the farmers' production costs at the minimum, support for fertilizers, electricity used in irrigation, and development assistance (subsidy) for sugarcane cultivation have been consistently provided.
From 2009 to 2023, approximately an amount of Tk. 1.29 lakh crore has been allocated as development assistance.
Furthermore, since FY 2009-10, our government has been implementing the 'agricultural loan for marginalised farmers' scheme through Bangladesh Bank to provide timely collateral-free, low-interest agricultural loans to the disadvantaged farming community.
The minister said the government is ensuring the supply of required loans for agricultural production.
In the FY2022-23, within the scope of the agriculture and rural development programmes, approximately 27 lakh small and marginal farmers were provided loans from various banks which amounted to Tk22,402 crore.
Besides, in FY2023-24, a target of Taka 35 thousand crore has been set for the distribution of agricultural and rural loans, said Ali.
