Real challenges in agriculture: What’s blocking Bangladesh’s farmers from expected gains

Bangladesh's agricultural sector, the backbone of the country's food security, is facing multiple crises and challenges, according to a report by the task force on economic reforms.

Despite increased crop production, farmers are struggling to reap the expected benefits due to a shortage of agricultural labour, climate change, weak market management, and limited use of modern technology.

Challenges such as lower productivity compared to neighbouring countries, shrinking farmland, and a lack of agricultural export capacity have further exacerbated the situation.  

These findings are outlined in the Task Force Report on Re-strategising the Economy and Mobilising Resources for Equitable and Sustainable Development, which was handed over by Planning Adviser Wahiduddin Mahmud to Chief Adviser Muhammad Yunus on Thursday (30 January).

The report highlights that the productivity and growth rate of the agricultural sector are declining.

Currently, the sector's annual growth rate is 3.5%, down from 4.5% in the 1990s. In comparison, the growth rate is 2.9% in India, 2.7% in Pakistan, and 2.8% in Vietnam.

While production has seen some increase, sustainable development is being hindered by land shrinkage and limited adoption of new technology.  

About 45% of Bangladesh's workforce is employed in agriculture, but labour shortages are becoming more acute as younger generations migrate to cities.

At present, only 50% of farmers in the country use mechanised cultivation per hectare, compared to 80% in India. The decline in paddy and jute cultivation due to labour shortages could pose a risk to food security.  

The report states that Bangladesh loses crops worth $3 billion annually due to climate change. A temperature rise of just 1°C could reduce paddy production by 5-7%, increasing financial losses for farmers and heightening the risk of a food crisis.  

In terms of irrigation coverage, Bangladesh stands at 58%, compared to 48% in India, 50% in Pakistan, and 65% in Vietnam. While Bangladesh leads in fertiliser use at 236 kg per hectare, it lags behind Vietnam and India in overall productivity.

The report emphasises the need for improved irrigation and fertiliser management to address these gaps.  

Post-harvest losses are another significant issue, with up to 25% of crops wasted due to inadequate storage infrastructure. Bangladesh's agricultural exports stand at $2.5 billion, far behind Vietnam's $40 billion. 

The report stresses the importance of processing, preserving, and ensuring international standards for agricultural products to enhance export capacity.  

The report also notes that Bangladesh lags behind its neighbours in modern agricultural technology.

India has advanced precision farming, Vietnam uses smart irrigation, and Pakistan has implemented digital agricultural management systems, while Bangladesh remains largely dependent on traditional rice cultivation.

In contrast, India and Vietnam have diversified into fruit, vegetable, and fish farming.  

To address these issues, the task force has made several recommendations, including increasing mechanisation through government subsidies and easy-term loans.

Improving market connectivity, reforming storage and export policies to ensure fair prices, and expanding the cultivation of salt-tolerant and drought-resistant crops are also among the key proposals.

The report calls for the adoption of high-yield seeds, modern irrigation systems, and digital agricultural technologies to strengthen the sector.