Tk 350 billion for agriculture sought as BAEA urges higher subsidies
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The Bangladesh Agricultural Economists Association (BAEA) on Tuesday demanded that the government raise agricultural subsidies to Tk 350 billion in the national budget for fiscal year 2026-27, more than double the current allocation of Tk 172.41 billion, citing rising production costs and growing climate vulnerabilities.
The demand came at a national seminar titled “National Budget 2026-27: Roadmap for Sustainable Agricultural Development in Bangladesh,” held at the auditorium of the Bangladesh Agricultural Research Council in Farmgate, Dhaka.
BAEA also proposed increasing the agriculture sector’s share in the national budget to 9.5 per cent from the existing 5.9 per cent. Based on a projected national budget of Tk 9.3 trillion, the organisation suggested allocating around Tk 883.5 billion to agriculture.
The keynote paper was presented by Professor Golam Hafeez Kennedy and Professor Dr Md Wakilur Rahman, both professors at Bangladesh Agricultural University.
The paper said global energy market instability, the war in Ukraine, tensions involving Iran and the Strait of Hormuz, and exchange rate volatility have sharply increased the costs of fertiliser, fuel, irrigation, seeds and agricultural machinery, putting additional pressure on farmers.
It noted that around 1.4 million farmers were affected by floods in 2024, causing agricultural losses estimated at Tk 33.46 billion.
Flash floods in the haor region this year also damaged boro paddy cultivation on nearly 53,000 hectares of land, affecting about 230,000 farmers.
The association proposed expanding the farmer card programme, excavating and re-excavating 20,000 kilometres of canals, introducing agricultural insurance, establishing specialised cold storage facilities, expanding solar-powered irrigation systems and offering incentives for local agricultural machinery manufacturing.
The paper further said Bangladesh’s educated unemployment rate stands at around 13.54 per cent and suggested that agro-based startups, agri-entrepreneurship and rural agro-processing industries could generate substantial employment opportunities for youth.
Agriculture Minister Mohammad Amin Ur Rashid attended the seminar as the chief guest, while Fisheries and Livestock State Minister Sultan Salauddin Tuku and Planning State Minister Md Jonayed Abdur Rahim Saki were present as special guests.
Saki said the government had approved an Annual Development Programme (ADP) worth Tk 3 trillion for FY2026-27, 30 per cent higher than the previous fiscal year.
According to him, the agriculture sector received Tk 108.43 billion under the ADP, accounting for 3.61 per cent of the total allocation. The programme also includes funding for 122 ongoing projects and a block allocation of around Tk 20.09 billion for agriculture.
He said the government was preparing a new strategic framework to replace the traditional five-year plan with short-, medium- and long-term targets covering 180 days, one year and five years.
Saki also identified agro-processing as a major growth area but warned that production growth alone would not be enough to achieve broader economic targets.
Referring to challenges in the farm sector, he mentioned shrinking farmland, declining soil fertility, capital shortages among marginal farmers, limited market access and an acute shortage of agricultural labour.
The seminar was chaired by BAEA President and agricultural entrepreneur Md Ahsanuzzaman Lintu.