Fair price to elude farmers if diesel, power tariffs not cut
Farmers may reduce production if they do not get good prices for their products. In this situation, reducing the cost of production has become a major challenge
We have to go through a kind of crisis in areas from food production to marketing due to the Russia-Ukraine war that started when the Covid-19 pandemic was subsiding. The cost of agricultural production has risen due to various reasons including increase in the prices of diesel, electricity, labour, fertiliser, and seed.
When the cost of production goes up, farmers' concern over fair price will also increase and affect production directly. Farmers may reduce production if they do not get good prices for their products. In this situation, reducing the cost of production has become a major challenge.
According to different estimations, the production cost of paddy will increase this year by Tk1,200-1,300 per bigha, or a little more. If a farmer does not get an increased price for rice after spending more for production, then this additional cost will become an extra burden for them.
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There is little scope for reducing workers' wages, but there is a scope of reducing the diesel and electricity prices. The Boro season has begun. This is the time when the government needs to decide to reduce the price of diesel. Otherwise, it will not be possible to reduce the price of rice which is currently Tk70-80 per kg, and people will have to buy it at this price in the coming days as well.
The government frequently tries to import rice from foreign countries to increase its reserves, but they buy a small quantity of paddy from local sellers. We have asked the government to buy at least 30 lakh tonnes of paddy instead of buying more rice. Doing so would ensure a good price in the market, while buying a small quantity of paddy will not have the same effect, because the farmers do not sell paddy to the government due to various conditions. The paddy that is collected by the government comes from the middlemen.
Whenever we inform the government regarding the issue, they say they do not have enough storage, but it can be done by renting private storages too.
To ensure fair prices to the farmers, the government should plan to purchase more paddy and set up booths in villages and rural marketplaces for this purpose, because the farmers will not spend money to go to the government warehouses to sell their produce. Currently, middlemen buy paddy from farmers' homes, so, why would they go to the government?
If this is not done, the fair prices for farmers will not be guaranteed, and the market will not be freed from the grip of manipulative rice traders.
Along with focusing on reducing the production cost, the government has to work to ensure that the farmers get better prices. To ensure that, there is no alternative to reducing the price of diesel, electricity.
Moreover, the government does not need to sell rice at the rate of Tk15 per kg, it can sell it at Tk20-25 per kg. But, rice at this price should be more available instead of only in small quantities in OMS (Open Market Sale).
I think our food situation is still relatively good compared to other countries across the world. Bangladesh is not in a situation where we will be in trouble if there is a crisis anywhere else in the world.
If the government ensures the supply of electricity, diesel and fertilisers and there are no major natural disasters, the food shortage that is being talked about globally due to the Russia-Ukraine war will not affect Bangladesh much.
While there is no crisis in our staple food rice, there is a problem in wheat, edible oil and sugar. All these products have to be bought at higher prices due to price increase in the world market and depreciation of taka.
To deal with this crisis, the government should give maximum importance to agricultural production.
All the farmers have been getting government incentives regarding fertilisers, but a crisis started when many dealers sold huge quantities of fertilisers due to weak monitoring. The government should increase its vigilance in this sector.
Besides, in order to get better yields, the government has to ensure uninterrupted supply of diesel and electricity.
The prices of all types of seeds have increased before the beginning of Boro season. At a time when the country's agriculture is going through a crisis, it is not right to put pressure on the farmers without increasing the government support.
Agriculture as a profession or business is very risky, so all types of crops should be covered under insurance. First priority should be given to low-lying areas, haors and disaster prone areas. For the first few years, the government should encourage the farmers by paying the premium.
While the farmers do not get fair prices, extortions on the roads often increase the prices in the market. There is no alternative to preventing extortion to keep the prices in control.
Finally, every effort should be made to reduce wastage of agricultural products. It is impossible to increase production by 5% due to scarcity of land, but it is possible to reduce over 10% of waste.
The author is a former secretary of the Ministry of Agriculture
