Fertiliser prices may go up
Amid growing concern over price hike of main farm inputs, Finance Minister AMA Muhith yesterday hinted that prices of all fertilisers, including urea, may increase further in the next fiscal year.
The move is aimed at lessening the mounting burden of subsidies in the sector, he said.
Prices of urea rose to Tk 20 a kg from Tk 12 in June last year. And the price of diesel, another key agro input, jumped to Tk 61 per litre in January this year, up from Tk 46 in September last year.
Yet the government had to spend Tk 10,000 crore in subsidies for the sector in the current fiscal year due to the rise in fertiliser prices on the international markets, Muhith said, adding that the budgetary allocation for the sector was Tk 4,500 crore.
"It will not be possible to give subsidy to the level of Tk 10,000 crore in the coming fiscal year."
The minister made the comment to journalists after Shykh Seraj, director and head of news of Channel i, placed a 55-point recommendation on the agriculture sector to him. Seraj has been making such recommendations since 2005.
This year's recommendations include introduction of insurance in the agriculture sector, special allocation for agricultural research, fixing base prices for paddy, jute, potato, and maize, and creating a market system that offers at least 10 percent net profit to the farmers.
Seraj, also a media personality, said he organised pre-budget seminars in six districts, where 25,000 farmers attended.
During their talks with Seraj, farmers said they did not need subsidies; they rather wanted a fair price for their produce.
Asked about the scope of creating a market system where farmers get fair prices, Muhith said there was a problem in fixing prices of commodities. "Balancing in fixing prices is a very difficult thing."
The government, however, may introduce a new mechanism so the farmers get the subsidies directly.
"We've to fix a strategy in the coming fiscal year on how much subsidies the government will give, as bigger subsidy cost creates problems for the government," he said.
On the overall budget, the minister said it would have been better if the government could announce a Tk 2,00,000-crore budget.
"It is not possible for lack of resources. If that were possible, then all the sectors could get bigger allocations."
He also expressed his frustration for not being able to announce district-wise budget as had been planned.
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