BAEA calls for Tk35,000cr agricultural subsidy in FY27 budget

The Bangladesh Agricultural Economists Association (BAEA) has demanded that the government increase agricultural subsidies to Tk35,000 crore in the upcoming FY2026-27 national budget, more than double the Tk17,241 crore allocated in the current fiscal year.

The demand was raised today (19 May) 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 Dhaka's Farmgate.

According to BAEA, agriculture received 5.9% of the total national budget in the current fiscal year. The organisation proposed increasing the allocation to 9.5% in the upcoming budget.

Based on a projected national budget of Tk9.3 lakh crore, BAEA expects Tk88,350 crore to be allocated to the agriculture sector.

The keynote paper was presented by Professor Golam Hafeez Kennedy and Professor Dr Md Wakilur Rahman of Bangladesh Agricultural University.

The paper said global energy instability, the Russia-Ukraine war, 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.

As a result, farmers' production costs have surged, making increased subsidies and agricultural investment essential, it added.

The paper also noted that around 1.4 million farmers were affected by floods in 2024, causing agricultural losses worth nearly Tk3,346 crore.

In addition, flash floods in the haor region this year damaged boro paddy on nearly 53,000 hectares of land, affecting around 230,000 farmers.

BAEA 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 and providing incentives for local agricultural machinery manufacturing.

The paper further said the country's educated unemployment rate currently stands at around 13.54% and suggested that agro-based startups, agri-entrepreneurship and rural agro-processing industries could generate significant employment opportunities for young people.

Speaking at the seminar as chief guest, Agriculture Minister Mohammed Amin Ur Rashid said the absence of accurate demand data is currently leading to wastage of agricultural products.

He said the Farmer's Card programme was introduced to reduce such wastage.

"The Farmer's Card is now being piloted. Once fully implemented, production will align with actual demand and no agricultural products will go to waste," he said.

Special guest and State Minister for Fisheries and Livestock Sultan Salauddin Tuku said strengthening agriculture, livestock and poultry sectors alongside improving the economic capacity of marginal communities is essential for building a stronger economy.

He said increased employment and production in the rural economy would further strengthen the national economic base.

The state minister stressed ensuring easy-term loans for the poultry sector, reducing production costs, increasing domestic vaccine production and preventing antibiotic misuse to ensure food safety.

He also called for coordinated initiatives to support small farmers and create more women entrepreneurs.

Meanwhile, State Minister for Planning Zonayed Abdur Rahim Saki said the government has approved a Tk3 lakh crore Annual Development Programme (ADP) for FY2026-27, 30% higher than the previous fiscal year.

He said the agriculture sector received Tk10,843 crore under the ADP, accounting for 3.61% of the total allocation.

The ADP also includes funding for 122 ongoing projects and a block allocation of around Tk2,009 crore for agriculture.

He further said the government is preparing a new strategic framework to replace the traditional five-year plan with targets for 180 days, one year and five years.

According to Saki, the framework will outline the government's development roadmap and will be finalised after consultations with ministries and stakeholders following the budget.

He said the government aims to move the economy from fragility to prosperity through three interconnected phases-recovery, transition and restoration.

Highlighting agriculture-related challenges, Saki pointed to limited land availability, declining soil fertility, capital shortages for marginal farmers, market access difficulties and severe shortages of agricultural labour.