High rice prices buoy Boro acreage

Farmers have planted paddy on increased areas of land during the current Boro cultivation season after being encouraged by higher prices for the staple grain in the domestic market for the last one year.

The total area being used to cultivate the dry season rice crop stands at 49.09 lakh hectares, up nearly 3 per cent from 47.86 lakh hectares in the previous season, according to data from the Department of Agricultural Extension (DAE) and Bangladesh Bureau of Statistics (BBS).

The DAE targeted acreage of 48.72 lakh hectares this Boro season.

The higher acreage buoyed expectations of better yields of the crop at a time when the country is reeling from soaring import costs for daily commodities, namely wheat, the second most consumed grain, and edible oil.

"As cultivation has increased, it can be assumed that we will get more than 2 crore tonnes of rice in the current Boro season unless there is a natural disaster," said Jahangir Alam, an agricultural economist.

"A spike in production will help stabilise the rice market," he added.

Bangladesh produced 3.76 crore tonnes of rice in fiscal 2020-21 with the Boro variety making up 53 per cent of the total amount, according to BBS data.

However, Alam said growers are spending higher for cultivation this season due to the increased cost of irrigation and ploughing after the government hiked diesel prices by 23 per cent to Tk 80 per litre in November last year.

"Cost of farm labour also rose," he added, suggesting the government buy the grain from farmers at Tk 30 per kilogramme (kg) in the coming procurement season instead of the previous Tk 27 per kg.

FH Ansarey, president of the agribusiness division of ACI Ltd, said farmers planted Boro rice by cutting down on vegetable and wheat cultivation.

"Prices of both paddy and rice are attractive," he said.

Yesterday in Dhaka, prices of the coarse grain were 1 per cent higher at Tk 45 to Tk 48 per kg compared to the same day a year ago, showed data from the Trading Corporation of Bangladesh.

Ansarey said sales of hybrid rice seeds grew 18 per cent year-on-year to nearly 13,000 tonnes this cultivation season from the previous year's 11,000 tonnes.

"We have also seen good sales of inbred rice," he said, expecting that overall yields would be higher if weather remains favourable.

"In this time of volatile commodity prices in the global market and concerns over the supply of grains, increased acreage provides a relief as higher production will cut our cereal import dependence," Ansarey added.

Bangladesh imported 9.58 lakh tonnes of rice between July 1 and March 14 of the ongoing fiscal year. The amount was 70 per cent of the total rice imported in the previous fiscal year, according to food ministry data.

Anwar Faruque, former agriculture secretary, said estimates of acreage should not be inflated since over estimation of cultivation would affect overall food planning, and thereby market prices.

He suggested agricultural agencies gather data to come to proper estimates on the area being used to grow Boro paddy.

"This will be instrumental in planning," Faruque added.

DAE Director General Md Benojir Alam expects good yields because of rainfall last month.

"Besides, acreage of hybrid rice which provides higher yields compared to inbred varieties has risen as well," he said, adding that hybrid rice acreage is 22.5 per cent of the total Boro area this season.