Floods May Cut Rice Production by 8.5 Lakh Tonnes

A recent Bangladesh Bank study reveals that farmers are the primary risk-takers in the agricultural value chain, especially for essential items like rice, potatoes, onions, eggs, and broiler chicken. Conducted across 14 districts, the study attributes price increases mainly to supply shortfalls caused by seasonal factors, reduced cultivation areas, floods, and pest attacks. Unlike intermediaries who secure fixed margins, farmers face fluctuating profits or losses depending on market conditions.

In FY2023–24, Bangladesh produced 68.84 lakh tonnes of maize from 6.42 lakh hectares, with FY2024–25 targets set at 71.60 lakh tonnes from 6.51 lakh hectares. Despite high yields of 35–45 maunds per bigha (1 maund ≈ 37 kg), farmers in districts like Lalmonirhat and Rangpur face falling prices—now Tk 28–29 per kg, down by Tk 2–3 from last year—while production costs rose to Tk 11–13 per kg or Tk 14,000–16,000 per bigha.

Bangladesh's tea exports jumped 57.55% in 2024, reaching 2.45 million kilograms and generating Tk45.96 crore in revenue. This marks a strong recovery from previous years when export volumes had dropped below 1 million kgs.

After interest rates were liberalized in May 2024, agricultural loan rates surged to 15–18%, up from a previous cap of 8%, resulting in a notable decline in disbursements. In the first eight months of the current fiscal year, banks disbursed Tk 22,126 crore in agricultural loans, which is Tk 1,565 crore or 6.60% less than the same period last year.

Maize cultivation in Bangladesh has surged, reaching a record 6.72 lakh hectares in FY 2024-25, up from 6.42 lakh hectares in FY 2023-24. The Department of Agricultural Extension (DAE) set a production target of 69.78 lakh tonnes for FY 2024-25, while the Food and Agriculture Organization (FAO) estimated output to reach 52 lakh tonnes.

The government's Aman paddy procurement has reached only 8.75% of its 3.5 lakh-tonne target, despite a Tk3 per kg price hike, as farmers prefer selling in the open market due to better prices and fewer hassles. So far, 26,277 tonnes of paddy, 430,206 tonnes of rice, and 77,000 tonnes of Atap rice have been collected, with Atap rice procurement continuing until 15 March.