BAEA Seeks Tk35,000cr Farm Subsidy in FY27 Budget

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The Bangladesh Agricultural Economists Association (BAEA) has called for raising agricultural subsidies to Tk35,000 crore in the upcoming FY2026–27 national budget, more than double the Tk17,241 crore allocated in the current fiscal year.

The demand was placed at a national seminar titled “National Budget 2026–27: Roadmap for Sustainable Agricultural Development in Bangladesh” held at the Bangladesh Agricultural Research Council auditorium in Dhaka’s Farmgate area.

BAEA said agriculture currently receives about 5.9% of the total national budget and proposed increasing this share to 9.5% in the next fiscal year. Based on an estimated national budget of Tk9.3 lakh crore, the organisation suggested allocating around Tk88,350 crore to the sector.

Key research findings were presented by Professor Golam Hafeez Kennedy and Professor Dr Md Wakilur Rahman of Bangladesh Agricultural University. They highlighted how global instability, including the Russia–Ukraine war, Middle East tensions, and volatility in the Strait of Hormuz, has sharply increased the cost of fertiliser, fuel, irrigation, seeds, and machinery.

The paper noted that rising input costs have significantly increased production expenses for farmers, strengthening the case for higher subsidies and targeted agricultural investment.

It also pointed out that around 1.4 million farmers were affected by floods in 2024, causing agricultural losses worth about Tk3,346 crore. In the haor region this year, flash floods damaged boro paddy on nearly 53,000 hectares of land, impacting around 230,000 farmers.

BAEA recommended expanding the farmer card programme, developing 20,000 kilometres of canals, introducing agricultural insurance, building cold storage facilities, expanding solar irrigation, and supporting local farm machinery production.

The association also highlighted unemployment concerns, noting that educated joblessness stands at around 13.54%. It suggested agro-based startups and rural agro-processing industries as key solutions for job creation.

Agriculture Minister Mohammed Amin Ur Rashid said inaccurate demand forecasting is leading to post-harvest wastage and stressed that the Farmer’s Card initiative aims to address this issue.

State Minister for Fisheries and Livestock Sultan Salauddin Tuku said strengthening agriculture, livestock, and poultry sectors is essential for boosting rural incomes and overall economic resilience.

State Minister for Planning Zonayed Abdur Rahim Saki said a Tk3 lakh crore Annual Development Programme has been approved for FY2026–27, with Tk10,843 crore allocated to agriculture across ongoing projects and block funding.

He added that the government is working on a new development planning framework structured around short-, medium-, and long-term targets to guide economic transition and recovery.