White Paper stresses stable food prices, crop diversification, rural agro investment

• Suggests removing taxes on essentials before crises 
• Urges accountability in agricultural mechanisation programmes
• Proposes early warning systems, disaster response mechanisms
• Advocates climate change integration into agricultural policies

The final draft of the White Paper on the State of the Bangladesh Economy has recommended mitigating price fluctuations, promoting crop diversification, investing in rural infrastructure, and enhancing early warning systems and disaster response to ensure the country's food security.

Fluctuations in the prices of essential goods pose a significant challenge for governments, often causing unrest among low and middle-income households reliant on fixed salaries, said the 400-page document, which was submitted to Chief Adviser Prof Muhammad Yunus on Sunday.

"To address this issue, it is crucial to control price volatility. One effective strategy is to eliminate entry barriers for middlemen - the locally called 'syndicate' - who hold excessive market power," it said.

The paper also said the government should consider removing all taxes (such as VAT or import duties) on these products well in advance – at least 45 days – before a potential crisis.

"Additionally, the tariff commission should conduct research to develop an automatic tax exemption mechanism, allowing imports when domestic prices reach a predetermined threshold level to maintain reasonable price levels, protecting low-income consumers while providing incentives for farmers to sustain production growth," it read.

Recommending strengthening farmer integration in the rice value chain, the paper said doing so will encourage collaborative models, such as cooperatives, increasing farmers' bargaining power, facilitating resource sharing, and enhancing access to financing, ultimately promoting sustainable practices and improving overall productivity.

Combating corruption

The White Paper also suggested combating corruption in agricultural mechanisation programmes. It said the government must take decisive action to hold corrupt officials accountable given the scandals of corruption that have plagued agricultural mechanisation programmes. 

"The government should implement strict accountability measures to ensure that all officials involved in agricultural programs are held responsible for their actions. This may include transparent investigation processes and the establishment of independent oversight bodies to monitor programme execution," reads the paper.

It suggested enhancing the existing anti-corruption frameworks, which can help identify and prevent corrupt practices. "This could involve developing clear guidelines and policies that define acceptable conduct and the consequences of corrupt behaviour."

The White Paper also deemed increasing transparency in procurement and funding processes related to agricultural mechanisation essential. "Publishing detailed information on contracts, expenditures, and programme outcomes can discourage corrupt activities and build public trust."

The paper also suggested introducing strong protections for whistleblowers, which can empower individuals to report corrupt practices without fear of retaliation. "This can lead to increased reporting and ultimately reduce corruption within the sector."

Crop diversification 

It also said promoting crop diversification and value addition for increasing farm incomes can offer greater economic returns and contribute to food security. 

Suggesting the government and agricultural organisations promote the cultivation of high-value crops by providing training, resources, and financial incentives to farmers, the paper said this diversification would reduce dependence on rice, mitigate risks from price fluctuations, and enhance nutritional diversity.

It also said implementing better post-harvest practices is crucial for maximising the quality and value of diverse crops. "This includes investing in storage solutions, transportation, and handling techniques to minimise losses and maintain product quality from farm to market."

Rural infrastructure 

The White Paper body also believes investing in rural infrastructure is vital for enhancing the productivity and economic viability of smallholder farmers, particularly those in remote areas.

"Developing robust irrigation systems can significantly improve crop yields and reduce the reliance on rainfall, ensuring consistent production throughout the year. This investment helps to mitigate the impacts of droughts and enhances food security," reads the paper.

It also said constructing and upgrading rural roads facilitates better access to markets for farmers. Improved transportation reduces post-harvest losses by allowing for timely delivery of products to markets and increases farmers' ability to obtain fair prices for their goods.

Mentioning that building adequate storage facilities is essential to minimise post-harvest losses, the report said proper storage solutions can preserve the quality of perishable produce, allowing farmers to sell their products at appropriate times for maximum profit.

Climate challenges

The White Paper also mentioned that Bangladesh is confronting new obstacles to achieving food security due to climate change, natural disasters, and other existing challenges. 

It recommended enhancing early warning systems and disaster response, as well as supporting agricultural adaptation to climate change, to ensure food security in the country. "Improving early warning systems and disaster response mechanisms is crucial for mitigating the impacts of natural disasters such as floods, droughts, cyclones, and salinity on agriculture."

It also said investing in advanced technology for early warning systems relevant to their cropping practices is important for enabling farmers to prepare and take preventive measures.

"Promoting sustainable land use practices, such as agroforestry and conservation agriculture, can enhance ecosystem resilience to climatic stresses. By prioritising these initiatives, stakeholders can significantly enhance the resilience of agricultural systems, safeguarding livelihoods and ensuring food security in the face of increasing climate variability," it added. 

The White Paper said it is essential to enable farmers to adopt adaptive practices to strengthen their resilience against climate change by providing financial support, training, and resources.

"This support can include the distribution of climate-resilient seeds as well as climate-based insurance schemes that protect farmers from crop losses due to extreme weather events," it said. "In addition, extension services focused on knowledge dissemination will equip farmers with the necessary skills and techniques to implement these adaptive strategies effectively."

It also recommended promoting evidence-based policymaking and integrating climate change considerations into national agricultural policies and development plans to ensure a cohesive and comprehensive approach to mitigating climate impacts. 

The paper further said increasing public awareness and education about climate change effects empowers communities with the knowledge and tools needed for local adaptation strategies. By prioritising these recommendations, Bangladesh can foster a more inclusive, sustainable, and resilient agricultural sector that supports rural livelihoods and contributes significantly to overall economic growth and food security.

Mentioning that Bangladesh has made significant strides in food security with consistently boosted food production since gaining independence in 1971, the paper said the country still encounters major challenges in achieving nutritional security, as reflected in the 2023 Global Hunger Index, which classifies it as a "serious" hunger level.

"Global conflicts, rising food prices, and political polarisation further impede progress in food security and negatively impact the nutritional status of impoverished households," reads the draft.