Staff Reporter :
The country will need Tk 28,000 crore this year for fertilizer subsidy, which is almost four times higher than last year. Of the subsidy, Tk 19,000 crore has already been subsidized for smooth supply of fertilizer to the farmers.
Agriculture Minister Dr Mohammad Abdur Razzaque said this while addressing a press briefing in his ministry’s conference room at the Secretariat on Monday.
“Due to ongoing coronavirus pandemic, the price of fertilizers worldwide has abnormally increased, which is almost three times higher compared to last year. Moreover, due to increase of fuel price, ship fares have also been more than doubled, which are reasons for increasing the subsidy in this sector,” he said.
Dr Razzaque said, “In the fiscal year (FY) of 2020-21, import cost of fertilizer per kg was-Urea Tk 32, TSP Tk 33, MOP Tk 23 and DAP Tk 37, which is now increased to Tk 96, Tk 70, Tk54 and Tk 93 respectively in the FY of 2021-22.”
However, urea is being given to the farmers at Tk 16 per kg, TSP at Tk 22, MOP at Tk 15 and DAP at Tk16, he said, adding that the subsidy currently stands at Tk 82 for per kg of Urea, Tk 50 for per kg of TSP, Tk 41 for per kg of MOP and Tk 79 for per kg of DAP.
“It will cost at least Tk 28,000 crore in the current financial year to provide this huge amount of subsidy. In the fiscal year of 2020-21, the subsidy was Tk 7,717 crore. This year’s budget for the subsidy sector is only Tk 9,500 crore. An additional Tk 19,000 crore is needed to fulfil the demand,” the minister added.
He also informed that the present government has given Tk 88,828 crore subsidy in the agriculture sector till the date after resuming in the office in 2009. But, the previous BNP led government had given Tk 1,095 crore subsidy in this sector during its tenure.
Dr Razzaque added that nowhere in the world there is such an example of subsidy.
“It’s possible to build another Padma bridge with a subsidy of Tk 28,000 crore a year. There is also pressure from various international organisations including the World Bank to reduce subsidies. But ignoring the objections of international community, Prime Minister Sheikh Hasina is giving subsidies,” the Agriculture minister said.
He claimed that although the price of fertilizer has tripled in the current fiscal year, the government has not increased its price in the domestic market considering farmer’s interest. The government has been maintaining the trend of agricultural production by providing subsidized fertilizers at affordable prices, he added.
Razzaque, also presidium member of ruling Awami League, said, “The government is in big trouble with the huge amount of subsidy. If the government wants to reduce subsidy, the farmers will have to suffer. On the other side, if the government continues the subsidy, the development activities will be hampered. Amid this situation, the government is in favour of continuing to provide subsidies to the farmers.”
He informed that the present government had reduced the price of fertilizer four times after resuming in the office to take fertilizers to the doorsteps of the farmers. Good governance ensured in the production, import and supply chain of fertilizers to reduce the sufferings of the farmers.
“But, if the fertilizer price is not decreased in the international markets, it would be hard to continue giving the subsidies. The government may exchange views with the country’s intellectuals, economists, civil society personalities and media persons to take decision whether the price of fertilizer would be increased or not,” he added.
Senior officials of the ministry were present during the press briefing.
