Agricultural subsidies have been provided for decades in Bangladesh to reduce production costs for farmers, but these have been steadily decreasing over the past three years, resulting in a meager per capita subsidy of less than Tk 1,000. According to a report by ActionAid, among 11 selected countries, farmers in Bangladesh receive only $7.8 (approximately Tk 780) per person, placing it among the lowest globally. In comparison, farmers in China receive about $159 and those in Indonesia $93 annually. The government’s agricultural subsidy decreased from Tk 25,998 crore in the fiscal year 2022-23 to Tk 24,332 crore in 2023-24, with a proposed budget of Tk 17,261 crore for 2024-25, which is Tk 7,071 crore less than the previous year, a nearly one-third reduction. Experts warn that further cuts in subsidies could negatively impact overall production systems, as rising costs of agricultural inputs, combined with climate change challenges like floods and droughts, threaten food security. To increase food production, a subsidy of 10% of agricultural GDP is recommended, while currently, it remains below 3%. It is essential to enhance financial support for agricultural inputs like fertilizers, diesel, and electricity to stimulate production.
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