The New Nation - Internet Edition

Business Desk

The government had allocated taka 2250 crore as fertiliser and diesel subsidy in the National Budget 2007-08, raising it from taka 1041 crore in the National Budget 2006-07 in order to help farmers to boost agricultural production. After the budget was announced, a circle raised the point whether the benefits of the subsidy would reach them or would be lost on the way? In fact, the benefits will reach farmers if the distribution system is improved at the field level as the government has taken all measures to meet the demand.

However, there are some sad incidents as regards the distribution of fertiliser. Very recently, the farmers of Krishnapur Union in Manikganj Sadar Upazilla mercilessly clubbed the fertiliser dealer and manhandled four Agricultural Officials for their failure to deliver fertilisers. In another incident, chairmen of Ullapara Upazilla in Sirajganj District summoned an emergency press conference the other day and said that they would be compelled to run away if the farmers of the area did not get fertilisers before the start of the rabi crops. The rabi season starts soon while the IRRI and boro season in a month time, said an farmer. According to another report, 42.25 lakh hectares of land have been brought under boro cultivation and 22 lakh hectares of land under rabi cultivation.

Meanwhile, the government has decreased fertiliser subsidy by 10 percent to be recovered from the marginal farmers, meaning that the price of MOP and TSP will naturally increase. Till date, percentage of subsidy to these two fertilisers was 25. A Bengali daily writes that the decision of reduction of subsidy has been taken in view of increase of price in the international market. Under the revised rate, government will pay taka over 3000 crore against previous cost of taka 1500 crore for import of four lakh tonnes of MOP and TSP each. Out of eight lakh tonnes, Bangladesh Agricultural Development Corporation will import 50,000 tonnes each while the Bangladesh Fertiliser Association the remainder. Seventy percent of MOP and TSP are used during the boro and rabi monsoon.

Hearing the news of reduction of fertiliser subsidy, a farmer said, "The decision will hurt the interests of those among us who suffered heavily during the recent back-to-back floods. Can't the government use the siphoned money to protect them from taking loan from the village moneylenders and the NGOs at high rate of interests? Twenty-eight lakh tonnes of urea will be needed during the current fiscal year. Highest 11.30 lakh tonnes will be used between January 1 and March 31. Of the total demand in the country, locally 19 lakh tonnes are produced while the residue is imported. At present the price of 50-kg per bag urea is taka 300 only, but a farmer told over phone from Pabna they might be required to purchase part of the requirements from the open market at a much higher rate for cultivation.