Internet Edition. November 8, 2008, Updated: Bangladesh Time 12:00 AM 
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Distribution of diesel subsidy



THE government has decided to distribute Taka 540 crore as diesel subsidy among farmers in order to reduce the pressure of increased diesel price. Under a similar programme, subsidies of about Tk.250 crore were distributed during the last Boro season among some 66 lakh farmers. The Ministry of Agriculture is preparing a list of farmers who use diesel-fuelled irrigation pumps for Boro cultivation for this season.

The subsidy distribution last time was reportedly marked by irregularities and corruption. Experiences of last year should be utilised to plug in the loopholes. There should be a built-in mechanism to minimise the scope of errors in the distribution system. The previous list allegedly included names of ineligible farmers. Another serious shortcoming was that the farmers were given subsidies after the irrigation period was over. This time, the government has decided to complete the work before mid-December. Timely distribution of the subsidy is the key to achieving the target of 1.8 crore tonnes of boro rice.

Boro cultivation accounts for almost 50 percent of the country's annual foodgrain production. During the last Boro season the production of foodgrains surpassed the target of 1.5 crore tonnes. Without subsidy it would not have been possible for the farmers seriously affected by repeated floods and a super cyclone to invest properly in the Boro crop. This reinforced the notion that the state has an obligation to intervene to address crises. Governments of different countries have given huge subsidies not only to bail out financial institutions but also to protect farmers. Timely distribution of subsidy alongside supply of other inputs including fertiliser to farmers is vital for achieving food production targets. The nation cannot afford to take chances in dealing with the production of foodgrains, which are increasingly becoming scarce in international markets.

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