Bangladesh’s land productivity dropped by 0.44% from 2011 to 2020 due to soil degradation, reduced fertility, and unsustainable farming practices, according to a Bangladesh Institute of Development Studies (BIDS) report. This marks a reversal from earlier growth trends, with productivity increasing 2.75% in the 1990s and 3.30% in 2010.
Using data from the Bangladesh Integrated Household Survey and agriculture census, the study revealed a reduction in cultivated land per holding, from 0.28 hectares in 2008 to 0.21 in 2019. Total Factor Productivity (TFP), which measures farm efficiency, stagnated between 2011 and 2017, then declined from 2018 to 2021.
While farm output grew 196% from 1990 to 2021, rising input costs, particularly for rice, have reduced profitability. Between 2012 and 2018, production costs rose 3.45% annually, while output prices grew just 1.31%, creating economic challenges for farmers as input costs outpaced returns.