Govt mulls providing diesel subsidy to Boro farmers

The government is considering subsidising diesel prices for Boro farmers in the wake of the rising cost of fuel in the local market and fear of climate change-induced expenditure increase in the cultivation of the paddy.

"The price of diesel is exorbitant right now. Meaning, farmers will have to spend more in the Boro season," Agriculture Minister Abdur Razzaque while addressing a programme on Thursday in the capital.

He said the government is considering providing the subsidy in a similar fashion to the subsidy provided to farmers for fertilisers.

The minister was addressing a workshop on sustainable management of groundwater for food security in the north-western region of Bangladesh at Brac Center in Mohakhali as the event's chief guest. The programme was organised by the Institute of Water Modelling with support from Bangladesh Agricultural University and the Commonwealth Scientific and Industrial Research Organisation of Australia.

A litre of diesel now costs Tk109, up from Tk80 a month ago, following hikes in fuel prices by the government. The hiked prices will increase irrigation costs by 36.25%.

Razzaque said Aman plantation is being hampered due to lack of rain and this will add up to the farmers' cost burden during the Boro season.

"Now is the rainy season. Usually, it is supposed to pour rain, but that is not happening. It is a concern for us," he said adding that without sufficient rain, Aman production is feared to be less than the expected amount.

He continued that many farmers use the money earned from Aman harvesting to invest in Boro cultivation, including buying fertilisers, and fuel for irrigation.

"If the rain does not come, it will have an adverse impact on the farmers," said the minister.

Experts have welcomed the government's plan to provide diesel subsidies to farmers but said it will not be enough to reduce irrigation cost substantially.

According to government data, nearly 8 lakh tonnes of diesel is used every Boro season. In the current market prices, it will cost Tk8720 crore.

"Reducing the price of diesel is a good initiative. But with the current prices, it is not possible to reduce the irrigation cost much for Boro cultivation. This will have a negative impact on Boro production. Many farmers may not want to cultivate the paddy," Agricultural economist Jahangir Alam Khan told The Business Standard.

He recommended that the government provide cash incentives to encourage farmers in Boro production.

He said, "When the government first came to power in 2009, it provided Tk800-900 cash incentives to farmers on diesel purchase. The government must do the same now to keep the farmers in Boro production" 

According to a study report presented in the workshop, groundwater level is dropping in three districts of the country—Naogaon, Chapainawabganj, and Rajshahi— which is feared to put more pressure on farmers.

The report said groundwater availability has a significant impact on Boro rice production.

Irrigation costs are relatively higher in polluted areas, while production is lower and farmers' profits are reduced, it said.

Besides, the report said there is a misconception that 3,000 to 5,000 litres of water is required to produce 1kg of Boro paddy.

According to the study, only 661 litres of water were used to produce per kg of Boro paddy in 2015-16 and 584 litres in 2016-17.

The study also found that expansion of Boro paddy cultivation has slowed down or stopped in the last decade in some parts of northwestern Bangladesh. The paddy variety has been replaced by Aus paddy.

Especially in the Varendra region, no new area of Boro paddy expansion has been found in the last 10 years, noted the report.

The study identified several reasons for the drop in groundwater, including overuse, upstream control of rivers, changes in cropping patterns, depletion of wetlands, reduction of water flow in rivers during the dry season, changes in land use, etc.