Farmers must get better price to avoid losses

NEWS report in a national daily on Friday said farmers have no smile on their face on peak boro season as they fear they would not be able to recover production cost, least to make a profit from farming. Soaring rice imports from the neighbouring country before harvest and bumper boro production have dampened the market outlook. Many farmers are therefore selling their stock at prices below production cost. Huge rice imports last year and early this year to the tune of over 13 lakh tones has left the local rice markets destabilized forcing the farmers and millers to sell at a loss. The government’s reluctance to discourage rice import from India, mainly carried out by some big importers having their business in India only worsened the situation until the authorities recently decided to impose 10 percent import duty on rice import, mainly focused on discouraging Indian suppliers. There is no denying of the fact that agriculture is still the single largest rural sector employing the vast majority of people to earn their livelihood. So like all other countries it also requires government supports in Bangladesh, particularly to keep the farmers production cost down and ensures a stable price with a profit for them to stay in the business. Here a country can’t depend on import, particularly when it is producing more than it consumes and exporting rice, thereby allow the domestic market to falter with cheaper import that only pushes the farmers to the brink. Market reports said price of a 40-kg paddy sack now varies from Tk 500 to Tk 550 in open market, although the government fixed procurement price stands at Tk 880. Farmers have to sell their stock at lower price in absence of enough government procurement outlets at rice producing belts. Paddy is now the cheapest cereal in big wholesale markets compared to beef selling at Tk 380 to 400 per kg while a Hilsha sells now at Tk 1,000 in some cases. The Indian push factor has also landed as a big shock to around 18 thousand local millers and more than 80 thousand mill workers; which in turn is having manifold negative impact on rural economy. What is noticeable is that the government is not having a cohesive farming policy that includes planning rice production, its marketing and storage. All such policies must aim at giving all out support to the farmers to keep their production cost down and ensure them profit. Subsidies to agriculture must reach them without benefiting rent seekers. Moreover, unnecessary rice import must be stopped which appears supportive to others domestic market at the cost of our farmers. We also suggest that the import duty on rice import must be applied soon to stop the plunge in local market.