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Saif

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Little takeaways from tiresome WTO MC13​

ASJADUL KIBRIA, FROM ABU DHABI
Published :​
Mar 03, 2024 00:27
Updated :​
Mar 03, 2024 00:27

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Graduating LDCs get little to laugh about, nor even guaranteed continuity of market-access privileges, as prolonged parleys at the WTO ministerial ended with late-night declaration encoding developed-developing divide over trade rules.

Extended until midnight Friday, the 13th Ministerial Conference (MC13) of the World Trade Organization (WTO) announced its conclusion formally early hours of Saturday in Abu Dhabi when the whole Arab city was fast asleep.

With a limited number of ministers and delegates, the brightly lighted Abu Dhabi National Exhibition Centre (ADNEC) looked almost deserted while few journalists and civil-society members were seen struggling for decoding the stipulated outcome of the ministerial declaration and decisions adopted by the members.

As there was no consensus among the developed and leading developing countries on two critical issues, agriculture and fisheries subsidies, no deal was reached thereof either.

India and some other developing nations strongly pushed for permanent solutions on public stockholding (PSH) of foods, but to no avail in the end. The United States (US) and the European Union (EU) duo wouldn't budge an inch allowing any compromise on the issue, terming it a trade-distorting measure. Thus, the matter remained unresolved, meaning India should continue to enjoy the so-called 'peace clause' agreed in the Bali ministerial a decade ago.

Indian commerce minister Piyusah Goyal, who actively participated in the negations and fought until the last minute for reaching a permanent solution, talked to journalists informally before the formal closing of the meet. He was of the view that, for India, peace clause is also enough to ensure food security.

The second phase of the fisheries subsidies agreement that provides for a ban on subsidies on overcapacity and overfishing was also not approved due to strong difference among the countries. The first phase of the agreement, adopted at the MC12 in Geneva, prohibits government support for illegal, unreported and unregulated, fishing, the fishing of overfished stocks and fishing on unregulated high seas.

The e-commerce moratorium will, however, continue for two more years despite opposition from India and some other countries. It means there will be no customs duties on electronic transmission during the period. Developed countries heavily backed the moratorium.

On dispute-settlement reform, members agreed to work for 'having a fully and well-functioning dispute- settlement system accessible to all members by 2024.'

The graduating LDCs, including Bangladesh, get three years as an extra time after their graduation to adjust with the WTO rules and provisions regarding the dispute-settlement system. They will also enjoy LDC-specific technical assistance and capacity building provided by the WTO for three years after the graduation.

There is, however, no binding commitment on the continuation of the preferential market access for the graduating LDCs.

"We reaffirm the provisions of special and differential treatment for developing Members and LDCs as an integral part of the WTO and its agreements," says the MC13 declaration.

Special and differential treatment in WTO agreements should be precise, effective and operational, adds the readout.

The WTO Director-General, Okonjo-Iweala, in her concluding remarks, said: "We have worked hard this week. We have achieved some important things and we have not managed to complete others.

Nevertheless, we moved those pieces of work in an important way. At the same time, we have delivered some milestone achievements for the WTO and laid the groundwork for more," she added.

At the concluding session, Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade of the UAE and MC13 Chair, thanked members for their active engagement during the conference.

"There is virtually no agreement on almost anything," said Auckland University Emeritus Professor Jane Kelsey who attended the conference as a guest of the conference chair.

"This follows a pattern of failures over successive ministerial," she told the media in a brief, but highly critical, statement.

"The WTO continues its steady decline, no longer just on life support but nearing death's door," says the swinging readout, incidentally at a time when there have been pleas for rebuilding a world trade system felicitous with current milieus.

The MC13 of the WTO started on Monday with trade ministers and senior officials of 164 members joining. As they had failed to reach consensus on critical issues during these days, the conference extended to Friday.

An eight-member Bangladesh delegation headed by Ahasanul Islam Titu, State Minister for Commerce, participated in the global trade meet. The conference brought together around 4,000 ministers, senior trade officials and other delegates from the WTO's 164 members and observers as well as representatives from civil society, business and the global media.

[The writer was in Abu Dhabi at the invitation of the Secretariat of the World Trade Organization (WTO) and Friedrich-Ebert-Stiftung (FES), Geneva.]
 

Saif

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Crop insurance: it's long overdue
ATIQUL KABIR TUHIN
Published :
Mar 02, 2024 21:46
Updated :
Mar 03, 2024 21:48

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A recent news report highlighting the plight of Towhidul Islam, a marginal farmer in the Godagari municipal area of Rajshahi, serves as a stark reminder of the vulnerability of farmers in Bangladesh due to unpredictable weather patterns. Because of a heavy rainfall during Aman harvesting period in 2023, Towhidul lost almost his entire Aman crop and the Tk. 2 lakh he had invested in cultivating his 15 bighas of land. This example alone underscores the urgent need for effective agricultural risk mitigation measures, particularly in a country where agriculture plays a significant role in the economy, contributing over 11.3 per cent to the GDP and involving more than 37 per cent of the population.

Agriculture sector has long been vulnerable to natural disasters like flooding, cyclones, and droughts, which disrupt farming activities and may cause substantial crop and economic losses. Climate change has aggravated the situation further.

To address these issues, weather index-based crop insurance can be a potential solution, offering a mechanism to mitigate weather-related uncertainties by providing timely compensation based on objective weather data.

About five years back, such a scheme was piloted by the state-owned Sadharan Bima Corporation (SBC) and the Asian Development Bank (ADB). It received overwhelming response from farmers in three districts where the project was implemented, Rajshahi, Sirajganj and Noakhali. Its aim was to provide financial compensation to farmers against their losses caused by adverse weather conditions, thereby promoting sustainable growth in agriculture, reducing poverty, and maintaining macro-financial stability.

Despite the potential benefits, one of the major hurdles in the implementation of such insurance schemes, however, has been the lack of government subsidies and support. The Ministry of Agriculture has shown reluctance towards endorsing weather index-based crop insurance, citing reasons such as concerns over undue claim settlements and existing subsidies on agriculture. While subsidies are essential for promoting private-sector agricultural insurance and ensuring affordability for farmers, it should not be viewed as a hindrance, but rather as an investment in mitigating production risks and safeguarding the livelihoods of millions of farmers.

The case of Towhidul Islam highlights the devastating consequences of not having adequate risk mitigation measures in place. His struggle to recover from crop losses and the burden of having to repay loans taken from local micro-financiers paint a grim picture of the challenges faced by farmers. It is imperative that the government, policymakers, and relevant stakeholders prioritise the establishment of effective crop insurance mechanisms that are accessible, transparent, and sustainable.

The experience of other countries, such as India with its Pradhan Mantri Fasal Bima Yojana (PMFBY), demonstrates the potential benefits of well-designed and subsidised crop insurance schemes in providing financial security and peace of mind to farmers. PMFBY focuses on making premium costs accessible to farmers through government subsidies, leveraging existing infrastructure, promoting investments by insurance companies, and ensuring efficient application processing through technology adoption.

Bangladesh can learn from India's tried and proven effective experience and tailor its approach to suit its unique agricultural landscape and challenges.

Furthermore, efforts should be made to address past shortcomings and improve the effectiveness of insurance products. This includes enhancing flood management strategies, innovating adaptation tools, and ensuring the transparency and efficiency of claim settlement processes. By addressing these issues and investing in resilient agricultural practices, Bangladesh can better prepare its farmers to withstand the growing threats posed by climate variability and extreme weather events.

The story of Towhidul Islam - and there are many more like his - serves as a poignant reminder of the urgent need for comprehensive and sustainable agricultural risk management strategies in Bangladesh. A well-designed insurance programme can offer much-needed security to farmers against the adverse impacts of natural calamities, fostering long-term agricultural sustainability and economic development.

Overall, a successful implementation of crop insurance in Bangladesh requires concerted efforts from policymakers, insurers, and international partners to overcome challenges and ensure the resilience and prosperity of the agricultural sector and rural communities. It is time for taking decisive action against the unpredictable forces of nature and protect the unsung heroes of the economy - the farmers.​
 

Saif

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Replenishing rice, farm products stock​

BD deal with Myanmar's pvt sector soon for supplies​

Rice price on steep rise in recent months​

SYFUL ISLAM
Published :​
Mar 07, 2024 00:55
Updated :​
Mar 07, 2024 00:55

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Bangladesh moves fast preparing a deal document for procuring rice and farm products from the war-torn eastern neighbour Myanmar to replenish stock, officials said, as market keeps gaining heat.

The Ministry of Commerce, after a recent meeting, shared a draft memorandum of understanding with the stakeholders and asked them to give opinion by March 10.

The MoU will be signed between the state-run Trading Corporation of Bangladesh (TCB) and the Myanmar Rice Federation (MRF), an umbrella body of Myanmar's private-sector rice industry.

Commerce officials have said by signing the accord Myanmar also wants to supply a number of farm products to Bangladesh apart from exporting rice. The inventory includes ginger, garlic and onions -- the spice items seen so pricey here.

Myanmar itself prepared the first draft of the MoU and dispatched to Bangladesh last October for review. Later, in February this year again, the other side sent another draft to Bangladesh after a further brush-up, officials said.

Sources said the meeting, held late last month at commerce ministry, decided that the MoU will be signed soon and so the opinions from the stakeholders need to be available "as soon as possible".

Moreover, the stakeholders had been asked not to go for 'excessive correction' of the deal details so that the draft could be finalised shortly.

At the meeting, the TCB chairman also wanted to interpolate into the MoU document a provision of 'export' to Myanmar by the trading arm of government -- TCB.

Sources said the meeting also decided to hold a virtual parley with the ministry concerned of Myanmar to fix a date for the signing of the trade memorandum.

A commerce ministry official told the FE that Myanmar forwarded a list of farm produce it wants to supply to Bangladesh. The Ministry of Agriculture has been asked to check the list and food ministry to recheck it further before giving opinion.

Chairman of the TCB Brigadier-General Md Ariful Hassan told the FE Wednesday that having a formal deal with Myanmar would open a new window for the corporation to get necessary farm products "easily and quickly".

"The MoU may help get products also at cheaper rates," he said about the trade with the next-door neighbour.

The government now supplies food-grains and some more essential commodities to 10 million families at subsidised rates to help mitigate the impacts of inflationary pressure on their small purses.

Data from Myanmar Rice Federation show that sprawling reclusive country exported 2.2 million tonnes of rice in the fiscal year 2023 (ended in March 2023).

Bangladesh had signed a government-to-government MoU with Myanmar in September 2022 under which annually the war-torn neighbour will export some 250,000 tonnes of rice and 50,000 tonnes of parboiled rice from 2022 to 2027.

Officials say after the signing of deal with Myanmar's private sector, Bangladesh will get more opportunity to import more rice and other farm products to feed local demand, which is substantially augmented through the sheltering of over a million tossed-off people from neighbouring province of Myanmar.​
 

Saif

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Women outnumber men in farming sector​


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More women are joining the agriculture sector in Bangladesh as their job opportunities in industries, especially garment factories, have stagnated and men switch to non-farm sectors amid increased mechanisation of farming activities.

Currently, 18.4 million women toil in the agriculture sector, making up 58 percent of the total workforce in the key area of the economy. On the other hand, the number of men involved in farm activities stands at 13.55 million, according to the Labour Force Survey of the Bangladesh Bureau of Statistics (BBS).

In the last two and a half decades, the share of male workers in agriculture, which also includes fisheries, livestock and forestry, dropped 13 percent from 15.58 million whereas employment in the farm sector doubled to nearly 32 million during the period.

This gap was filled by an increased entry of women. Since 1995-96, women's employment in farm jobs jumped 17 times.

"Due to the expansion of the agricultural sub-sectors in rural areas, women's participation has increased significantly, not only in numbers but also in the sub-sectors," said Sharmind Neelormi, a professor of economics at Jahangirnagar University.

There are some agriculture sub-sectors where women dominate, namely poultry, dairy, and cultivating commercial vegetables.

Besides, she said, there is a lack of jobs for women in sectors other than garment, the biggest employer of female workers.

"Often, women are offered jobs where they can be paid less than men. They are treated as less paying job-holders," said Prof Neelormi.

According to the economist, in the garment sector, a piece of labour-saving technology has been used for a long period. As a result, new job opportunities are shrinking although the number of women in the workforce is increasing.

"As they don't have enough job opportunities in the garment and other sectors, women have to be involved in agriculture or agri-aligned jobs even when the employment is not lucrative."

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File Photo: Star


Prof Neelormi thinks poverty has pushed women towards farming.

BBS data showed that the female labour force participation rate increased steadily over time. In 1995-96, the rate was 15.8 percent. Two and half decades later, it grew to 43 percent.

The farming sector absorbed 74 percent of the total employed female workers of 24.86 million in 2022.

Sayema Haque Bidisha, a professor of economics at the University of Dhaka, said a good number of male workers have migrated to the urban areas and it is not always possible for women to leave their households for various reasons.

She cited that women's participation in the garment sector has declined to 65 percent from 85 percent in the last one decade.

In a paper on the determinants and changes in women's participation in agriculture in Bangladesh from 1988 to 2008, noted economists WMH Jaim and Mahabub Hossain said the shift in participation of male labourers from agriculture to non-farm activities has created a tremendous worker shortage in the agricultural sector.

"This largely explains the gradual increase of female participation in agriculture."

The paper which was based on a study that found that in the non-farm sector, the opportunities for jobs for the male labour force have increased over time. For the female labour force, it has decreased to some extent.

Besides, higher agriculture mechanisation, which refers to the use of machines for tillage, irrigation and threshing of crops, is another reason.


The involvement of adult women increased in livestock and poultry production and homestead gardening. And the credit support from NGOs and microfinance institutions has facilitated this change.

However, women labourers in the farm sector face wage discrimination. Their workloads have also increased because of traditional gender roles since they have to perform some socially-determined gender-specific household activities like taking care of children and the elderly. This means they have to shoulder the compounded pressure of productive and reproductive work.

Rushidan Islam Rahman, a former research director at the Bangladesh Institute of Development Studies, said the growth of women's employment in agriculture can't be an effective route to gender equality for two reasons.

First, it resulted from a reduction in the absolute number of women employed in the industrial sector. Second, women's overcrowding in self-employment in agriculture without their increased ownership of land or agricultural assets led to a sharp decline in productivity.

These forces led to a decline in the real wage of women and a rise in the male-female wage ratio as shown by the LFS 2022, she said.

"Such changes imply that women's employment in agriculture is distress-driven. To reverse the situation, there is no option but to create employment opportunities with higher productivity through labour-intensive industrialisation."

Sadika Haque, a professor of agricultural economics at the Bangladesh Agricultural University, said the work hours of women in the farm sector are increasing while it is decreasing for men.


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Farmers using a self-made tool to water their watermelon plants in Gangarampur village of Khulna’s Batiaghata upazila. Due to the high salinity of the soil in the coastal region, the farmers go to the nearest deep tube wells -- sometimes kilometres away from their farmland -- from where they get fresh water through pipes. They then attach the pipes to small wicker baskets, and the water flows from the gaps in those. Farmers have been using this method to ensure the equal spread of water over each spot. Photo: Habibur Rahman/Star

However, because of the engagement in the farm sector, women's sleeping time has declined as they have to perform household chores, she said in a recent study.

"Household tasks should be done by all irrespective of gender to lessen the pressure on women. A change in mindset and attitude is necessary."

The increased share of women in the labour force, however, does not mean gender equality and empowerment of women in the real sense.

Prof Sadika noted that though there is a provision of land rights for women, they, in the true sense, can't exercise their rights and take control of the property because of social norms and attitudes.

"This needs to be changed."

She says it is necessary to ensure women's access to and control over resources.

"A change in social attitudes is required to guarantee gender equality. The role of the state is vital here."

In a write-up, Dirk Reinermann, director of the International Development Association Resource Mobilisation of the World Bank, said the global fight for gender equality rages on. Women and girls around the world still face many barriers to equal rights and opportunities.

"But we know that a world with equal opportunity for all is not only a matter of fairness and justice, it is also essential for sustainable development."​
 

Saif

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Agriculture saves the day for the country​

Published :​
Feb 19, 2024 21:40
Updated :​
Feb 20, 2024 21:24


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That the projection for Bangladesh's gross domestic product (GDP) growth for the fiscal year 2022-23 was scaled down by both the International Monetary Fund and the Asian Development Bank (ADB) is understandable.

The IMF lowered it from its original 6.5 per cent to 6.0 per cent and the ADB from 6.5 per cent to 6.2 per cent. But belying those projections the GDP growth ultimately slipped to 5.78 per cent, by the final reckoning of the Bangladesh Bureau of Statistics (BBS). The rate could dip still further but for the appreciable performance by the country's agriculture sector contrary to the decline in contribution by the economy's two main driving engines.

Service sector with a share of 51 per cent and manufacturing sector with a share of 37.7 per cent in the economy, have faltered in the immediate past financial year.


Sure enough, Bangladesh with its limited geographic space cannot compete with the two larger sectors either in GDP contribution or earning foreign exchange. But yet it serves as an anchor to the country's economic prosperity. How? This is quite simple: first, if the country produces the staples to meet its own requirement, it can act as the platform for the country's industry and service sector to launch programmes suitable for it. Second, the resourcefulness and adaptability farmers here have demonstrated so far have been responsible for the agriculture ministry to carry forward its innovative and technology-based agricultural programmes to a new level.

Third, there has been a kind of crop revolution thanks to the agriculture scientists who have tirelessly developed not only rice varieties but also introduced exotic crops and fruits through cross-breeding, mutation and genomic selection. The Germplasm Centre at the Bangladesh Agriculture University (BAU) alone has released as many as 70 varieties of fruits by this time. Unsurprisingly, farmers in some areas have opted for cultivation of cash crops including flowers instead of paddy.

Such efforts lead to the diversification of agriculture and consequently export of both agricultural produce and products has been growing over the past few years. But due to some institutional and infrastructural constraints, the export of agricultural goods could not reach the optimal level. Now that the government has made a crucial decision to set up a national quarantine authority, a prerequisite for compliance with the World Trade Organisation's (WTO's) Sanitary and Phytosanitary (SPS) Agreement, the move will help boost this particular trade. But this has to be complemented with the advanced system of packaging, cooling facility in transports for reaping the full benefits.

Farmers and agricultural scientists together have done a commendable job but unfortunately the fruits of their labour are eaten up by coteries who serve as middlemen in between source of production and marketing. Particularly, farmers are the most deprived lot in this country. If the ministry of agriculture is serious enough, it can eliminate the middlemen from the marketing process by entering into sustainable agreements with the Bangladesh Road Transport Corporation (BRTC) for it to take up the responsibility of transportation of at least the perishable agricultural produce from crop field to urban markets. The BRTC has entered into similar agreements with other ministries and departments to maximise its profit by deploying its pool of trucks for transportation of their goods. Both BRTC and farmers will derive mutual benefits from such a move.​
 

Saif

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Gender wage gap still persists in agriculture​


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Female farmhands engaged in weeding on a piece of land growing Boro season paddy in Kuptola village of Gaibandha sadar upazila recently. Here women get Tk 300 working from 8:00am to 5:00pm whereas men Tk 400 to Tk 500, a stark reminder of persistent inequalities between men and women in the workplace. According to UN Women, the gender pay gap stands at 20 percent globally, meaning women workers earn 80 percent of what men do. And the cumulative effect of pay disparities has real, daily negative consequences for women, their families, and society, especially during crises. Photo: Mostafa Shabuj

Farmers in Gobindaganj upazila of Gaibandha are currently engaging labourers to weed their fields of Boro season paddy ahead of the upcoming harvesting period.

Interestingly, there are more women working in the fields than men, indicating a major paradigm shift in the once male-dominated agriculture industry.​

But despite the narrowing gender gap, the significant wage gap between men and women in this line of work still persists, with male workers earning around Tk 450 per day while females make Tk 300.
As such, industry people say the prevalence of women in fields suggests that landowners have a financial motive to lower costs by hiring the comparatively cheaper female workers.

This is because the lower wages paid to female labourers allow landowners to enjoy the advantage of being able to hire a greater number of workers, thereby reducing the time needed to complete the work.

The wage discrepancy is not a new phenomenon as women have historically been paid less than men across all industries. And even when overall wages increase, the gap remains the same, they said.

Rina Begum, who works at a field in the Kuptula area of Gaibandha to support her family of five, said she was afraid to speak out against income inequality.

"If I speak against income inequality, then there will be fewer employment opportunities for me," she added.

Roshna Bewa, a 60-year-old widow, said she has been working in fields across Gaibandha for two decades since her husband's passing, with the stagnant wage gap not giving her any respite.

Abu Bakar, a landowner in Sadullapur upazila, employs four women for weeding. According to him, the wages paid to women are the market standard.

Although the wage gap is financially beneficial for landowners, it is not helping women make progress in terms of equality in the agriculture industry.

Halima Begum, who works for Bakar, said societal norms dictate that men's and women's wages cannot be equal as men are perceived to be stronger and more productive.

"This flawed perception is one of the reasons we get paid less," she added.

Rozia Begum, another worker at Bakar's field, echoed the same. "Our only option is to go along with this discriminatory practice as the alternative of having no work is even more bleak," she said.

Sadeka Halim, vice-chancellor of Jagannath University, said the agriculture sector employs the highest number of women although they do not have equal rights or control over land.

A portion of them look after land on behalf of absentee landlords and there is also a good portion of female-headed households, she added.

Sadeka, a former dean of the social sciences faculty at Dhaka University, said women have made advances in the formal sector.

However, 46 percent of women still work in the informal sector, where there are no rules and regulations and it is mainly the employers who determine the terms and conditions, she said.

She said female workers do not take breaks like men but they are discriminated against as they lack a focal point to raise a voice in their favour.

"This is true for women agricultural workers too. They are very much voiceless. They do not have any organisation or group to raise their voice for them to protect and ensure their rights," said Sadeka.

"The labour ministry should engage all stakeholders and work for ensuring the rights of workers in the informal sector too," she said.

Sharmind Neelormi, professor of economics at Jahangirnagar University, blamed pay inequality on social norms that considered women's labour to be less efficient.

She said the wage disparity between male and male workers has narrowed little over the decades.

"Previously, only meals were provided. The margin was over 50 percent before in the 1990s, but it is now down to 20-25 percent," she explained.

But the situation has changed as the use of manual labour has decreased thanks to agricultural mechanisation. If the use of such machinery rises, the gap will be reduced, she added.

Sadika Haque, professor of agricultural economics at Bangladesh Agricultural University, says women work in crop fields and play a major role in production and post-harvest management.

In an article on women in agriculture and their empowerment in a book titled "Bangladesher Krishi Orthoniti", she, citing research findings, said out of 23 stages from rice production to storing, women participate in 17 stages.

She, however, said women workers in agriculture face wage discrimination, getting Tk 42 lower than their male counterparts a day.

The daily average wage of a female farm worker is Tk 388, she said in the book published in 2022.

Talking to The Daily Star yesterday, Sadika said the government should form a policy for farm workers to ensure fair wages for them regardless of gender.

She said there was a perception among employers and men that women workers do less work than men.

"This is a wrong perception. Rather, women work sincerely as long as they stay in the workplace," said Sadika.

"Awareness of employers is also necessary, as is the need for change in social attitudes towards women workers," she said, adding that steps must also be taken to protect women workers from harassment.

Ensuring education for women is necessary to enhance their skills too, added Sadika.​
 

Saif

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Agri export suffers sharpest decline in 7 years​


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The export of agricultural products, including vegetables, fruits and dry food, decreased 26.96 per cent in the first eight months of the current financial year, the sharpest decline in seven years, official figures showed.

Agricultural products fetched $623.18 million in July-February of 2022-23, which was $853 million in the same eight-month period of 2021-22, according to data from the Export Promotion Bureau (EPB).​

This was the sharpest decline in seven years. It rose 28.36 per cent in July-February of 2021-22.

The sharp export slowdown is threatening Bangladesh's increasing earnings from the selling of agricultural products in the external markets.

The shipment went past the $1-billion mark for the first time in 2020-21 when exporters fetched $1.03 billion. The momentum continued in the following fiscal year when the earnings rose to $1.16 billion, according to the EPB.

Exporters blame the higher raw material costs and buyers' reluctance to procure products from Bangladesh at the escalated prices for the decline.

Owing to higher cargo fares and freight costs, local exporters themselves are also showing a lack of interest in selling fresh farm produce in the overseas markets, they said.

Mohammad Shahadat Hossain, assistant general manager for exports at Kazi Food Industries Limited, said: "Due to the increase in the price of raw materials, buyers are not agreeing to the new price. Our prices are also much higher than in the competing countries. So, we are losing markets."

At the same time, the profit margin has also decreased, he claimed.

Firms exported frozen vegetables, fruits and processed foods to 12 countries, including Saudi Arabia, Italy, France, the United Kingdom and Ireland.

"Although the quality of our products is better than competitors', Bangladesh is lagging behind due to higher prices," Hossain added.

Mizanur Rahman, proprietor of Need Agro Foods Limited, said the cost of production had increased by 35 per cent. "When the new price is sent to buyers, they don't want to place orders. As a result, orders have decreased."

Need Agro Foods exports bakery products and spices to Qatar and Saudi Arabia.

Rahman said competitor countries such as India could sell products at prices that are lower than quoted by Bangladeshi companies. Even Pakistan is selling products at lower prices than Bangladesh.

Square Food and Beverage Ltd usually exports aromatic rice, spices, mustard oil and snacks to the Middle East, the United States, Canada and various European countries.

Rezaul Karim, assistant manager of the international marketing department of the company, said the government has stopped the export of aromatic rice since July 2022 to keep the local rice market stable.

"So, we can't export aromatic rice now. This has a negative impact on our overall exports."

Rice accounts for about 30 per cent of the export value of Square Food and Beverage.

Debasish Singha, head of business at Danish Biscuit, owned by Partex Star Group, said the company's goods exports fell by nearly 20 per cent in July-February due to rising prices and the ongoing global economic slowdown.

It ships products to 54 countries.

A top official of an export-oriented company, said some exporters used to show higher receipts in their documents in order to reap more benefits from the government's incentives.

"After the issue came to the notice of the government, the misuse has reduced. This could be one of the main factors for the decline in exports," he said.

The government provides a 20 per cent incentive for the export of agricultural products.

SM Jahangir Hossain, president of the Bangladesh Fruits, Vegetables and Allied Products Exporters' Association, said freight costs have gone up. So, importers, mainly in the Middle East, are showing a lack of interest to buy fresh farm produce from Bangladesh.

"In the last six months, airlines have hiked cargo fares at will," he said, adding that the air freight cost has shot up 40 per cent over the last one year.​
 

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Paradox of agricultural mechanisation
Abdul Bayes | Published: 00:00, Mar 13,2024

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— LightCastle Partners

THE story of the ‘massive’ mechanisation of agriculture in Bangladesh, sordidly, conceals more than it reveals. A priori reasoning would suggest that such mechanisation would have raised both yield and profitability, thus putting the farmers on an even keel. But allegedly, they are in peril with dwindling margins. The paradox of rising mechanisation and farmers’ failing fortunes from production has been amply addressed by recent research. A group of researchers from the International Food Policy Research Institute attempted to shed important insights into agricultural mechanisation in Bangladesh. The overall goal of the research on the state of agricultural mechanisation in Bangladesh is to assess the mechanisation support programme’s impact on the agricultural sector and its effectiveness.

The discussion kicks off with the observation of declining agricultural labour force participation (2005–2022) and increasing real wages in agriculture (2010–2022) and then presents a summarised sequential history of mechanisation policy over time:

Adoption of mechanised irrigation (1970–1990): liberalisation of input markets, elimination of import tariffs on machinery, multiple engine and pump brands and sizes, and spare parts entering the market; repair workshops appear.

Adoption of mechanised tillage (1990–2005): duty-free import for 2WT (1995), flourishing of SME metal workshops, flourishing of machinery rental market local service providers.

Adoption of mechanised threshing (2005–): targeted government incentives for the purchase of selected machinery (combines, transplanters, etc), special consideration to areas where mechanisation is lagging.

There is evidence of large regional variations in the extent of machine use, with the coastal and haor belts witnessing the least mechanisation owing to a variety of factors: machines considered are power pump, seeder, power tiller, tractor, and thresher; lowest levels of ownership in the coastal zone and north-east (focus of government mechanisation priorities); highest levels of machine ownership in the west and north-west (districts with high cropping intensity) and hubs of small-scale machinery manufacturing have emerged in the west and north-west.

In fact, the government has extended its support for mechanisation in the form of various incentives, especially in the import of machines. For example, in the first phase, the government offered a 30 per cent incentive for purchasing power threshers, reaper sprayers, power tillers, seeders, weeders, dryers, power winnowers, sprinkler irrigation sets, etc. In the second phase (2012–2019), the government granted a 50–70 per cent incentive for purchasing power threshers, reapers, sprayers (foot pumps), combine harvesters, and rice transplanters. In the third phase (2019–), the government provided a 50–70 per cent incentive for purchasing power threshers, reapers, sprayers, combine harvesters, and rice transplanters, seeder/bed planter, power weeder, dryer, maize sheller, potato digger, potato chip maker, carrot washer, etc.

As a result of those incentives, machine ownership increased from 2008 and 2019, but from a very low base. Ownership of agricultural machinery increased among smallholders, but remained concentrated among larger farms; most agricultural machines used by farmers are rented (84–98 per cent). It means that there has developed a large rental market for agricultural machines in rural areas.

Through regression analysis, the researchers reached to the impacts of mechanisation (2011–2018) by types of equipment as follows:

Threshing helped gain small yield through reduced grain loss, saved labour, and increased in labour productivity slightly. But there was no increase in profitability associated with threshing (rental costs may offset labour savings/yield increase)

Other machines also did little to help save labour or increase profitability. Reasons for using these machines appear to be convenience, speed, and avoiding drudgery.

On the other hand, during 2011–2018, wage rates monotonically increased by 16–30 per cent but paddy prices monotonically moved in opposite directions by 18–29 per cent. In fact, the real gross margin for boro cultivation (constant 2011 prices) declined from about Tk 18 thousand per acre to about 7 thousand per acre, and the net margin (including opportunity costs) fell from Tk 10 thousand to minus 800 during 2011–2018. It thus seemingly shows that mechanisation of irrigation, land preparation, and threshing is insufficient to improve farmers’ economic performance. At the same time, it suggests that mechanisation of largely unmechanized labour-intensive tasks will be needed to move the needle.

As has been argued by the researchers, the most labour-intensive is planting and threshing, where no penetration of machines is evident yet, thus eroding farmers’ profits due to the high wage for labour. For example only 0.1 per cent of rice farmers used machines for planting and 0.9 per cent for harvesting in 2018.

The researchers have come up with a number of recommendations for policymakers. The emerging policy considerations should be: rental market is key for smallholder access to agricultural machinery; large machines are much more expensive than small machinery; banks are hesitant to provide loans due to limited rural presence, lack of credit history, and lack of understanding of rental service business viability; importers and manufacturers have limited capacity to extend (or obtain) credit; current mechanisation policy prohibits transfer of machine ownership; no hire-purchase loans via banks (common in other countries); challenges with spare parts, maintenance for sophisticated machines; and few skilled operators, mechanics, and little training.

It must also be admitted that we face knowledge gaps on different fronts, such as the extent of adoption of machines for planting and harvesting; the impacts of adoption of new machines (yields, profitability, labour allocation, gender, climate); the financial viability of rental service provision models for service providers and barriers to effective operation; the efficacy of targeting incentives for machine purchases and scope for improvement; and effective models for financing machine purchases and rentals.

In Conclusions, the authors tend to observe a long-run decline in the profitability of farming due to tightening rural labour markets and declining cereal prices (pre-2022); high levels of mechanisation in irrigation, land preparation, and threshing; limited scope for productivity gains or cost savings; that mechanising harvesting and planting has the potential to reduce labour constraints, improve productivity, free up labour, and reduce costs; that the extent of adoption, impacts, and constraints are not yet well understood; and that focused research is needed to inform policy choices that enable accelerated adoption.

So, unless the most labour-intensive segments of rice crop production, such as transplanting and harvesting, are mechanised, the paradox of mechanisation and mourning can hardly be resolved, and all attempts should be thrown in that direction.

Abdul Bayes, a former professor of economics and vice-chancellor of Jahangirnagar University, is an adjunct faculty at East West University.​
 

Saif

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Weather-resilient rice farming promises
Published: 00:00, Mar 14,2024

A successful and extensive implementation of WFBAS in rice production would help to achieve Sustainable Development Goal 2.4, which focuses on rice productivity and profitability for farmers as well as long-term food security, writes Niaz Md Farhat Rahman

THE agricultural sector plays a vital role in promoting its economic growth. The contributions of agriculture and the crop subsector to the gross domestic product are about 13.47 per cent and 6.77 per cent, respectively. Rice is the main staple crop in Bangladesh, supplying more than 80 per cent of the total consumed food and contributing 60 per cent of the total required protein. The country ranks third in the world in rice production.


The contribution of rice farming, with a share of about 70 per cent, to the agricultural GDP is significant. Nearly 48 per cent of total rural employment in Bangladesh is directly or indirectly involved in rice production, and more than 13 million farms grow rice in an area covering some 11.77 million hectares, accounting for 78 per cent of the total agricultural crop production.

The weather significantly influences crop growth, maturity, yields, pest and disease prevalence, and water and fertiliser needs. Furthermore, the weather also has an impact on the quality of crops during their movement from the field to warehousing and then to the market. Adverse weather can affect the quality of products during transportation, as well as the viability and vigour of seeds and planting material during warehousing.

Crops and cropping systems must be matched to the meteorological requirements for maximum yield in a specific area, and pest- and disease-prevalent seasons must be avoided. Short-period meteorological data, either routine or analysed (like initial and conditional probability), play a significant role in strategic crop and cropping practice planning.



Usually, farmers cultivate in a weather-blind situation for several hours. Therefore, variations in weather and extreme weather events frequently damage crops, and farmers do not take any precautionary measures. Moreover, the benefit of favourable weather events (eg, fertiliser application on a sunny day or reduction of irrigation for the next hours or days of rainfall) remains unexploited. Weather-smart farming would consider the weather forecast and translate it into advice for farm operations to reduce the risk of adverse weather events and utilise the benefits of favourable weather events.

Agricultural weather forecasts give the required meteorological messages to guide farmers in making decisions in time about particular field activities. The impact of weather irregularities on a given crop depends on different cropping stages and on the location. The Weather Forecast-based Advisory Service under Weather Resilient Rice Cultivation Technology developed by Agromet Lab of Bangladesh Rice Research Institute is a crop management system that uses weather forecasts to generate location-specific and crop growth-stage-wise advisory services.

WFBAS is an effective concept and technique for weather as well as weather-smart rice production in Bangladesh. It can help farmers and decision-makers make appropriate rice crop management decisions for various weather conditions ahead of time. It would lessen risk as well as allow farmers to take advantage of favourable weather circumstances.

For the first time, the BRRI Agromet Lab reported on the performance of WFBAS and traditional farming practices regarding yield enhancement, profitability, and the risk of rice cultivation in different regions of Bangladesh.

The experimental findings of the BRRI Agromet Lab reveal that farmers who practice weather-resilient rice cultivation technology can enhance grain yield by 7 per cent, about half a tonne more than traditional. The study found strong evidence that management was a significant contributor to enhancing rice yield rather than choice of variety.


Nevertheless, the effective utilisation of weather information can significantly decrease overall crop losses. Furthermore, the optimal and timely use of inputs in the WFBAS system can lower production costs by an average of 13 per cent. In terms of risk, WFBAS is better than FP, despite the greater environmental variance. Moreover, WFBAS provided a scope to protect the environment with the minimum residual effect of fertiliser and pesticides. It also reduced the pressure on groundwater by ensuring efficient water management. Overall, farmers can earn an additional US$229.33 per hectare from Boro rice following the WFBAS instead of FP because WFBAS is less cost-intensive (e.g., low production cost) but more productive (eg, higher yield) than FP.

The WFBAS technology was about 31 per cent more profitable than the FP technology. WFBAS is considered an important means to improve farm outcomes by aiding the decision-making of the farmers about various operations (such as sowing, fertiliser application, irrigation, and plant protection) well ahead of time. Around 2 kg more seeds were used with FP technology. FP was found to be more labour-intensive than WFBAS. Farmers used almost 840 labourer hours per hectare on average under FP, whereas it was around 720 labourer hours under the WFBAS management system.

The farmers who followed the WFBAS were able to reduce their use of fertiliser by 16 per cent and irrigation water by 23 per cent while maintaining or even increasing their yields compared to those who did not follow that system. We also found in this study that farmers who followed WFBAS were able to reduce their use of herbicides by 52 per cent, insecticides by 40 per cent and fungicides by 26 per cent while maintaining or even increasing their yields compared to those who did not receive the services. Finally, the farmers benefited from higher income through yield enhancement, reduction of the costs of production, and reduction of risk.

The impact study results of the sensitivity analysis revealed that the adoption of WFBAS technology will stimulate total rough rice production by 0.172 million tonnes if only 5 per cent adoption rates can be ensured. We have valued the farmers’ additional benefit by adopting WFBAS technology in terms of actual (18.25 BDT per kg) as well as the government-declared rough rice farm-gate prices (26.00 BDT per kg) during 2018–19. The results showed that the nation will benefit from adding BDT 3143 million if only 5 per cent of farmers adopt the WFBAS. However, if the government-declared price can be ensured, the benefit can be BDT 4478 million.

We have already set a target of bringing 3 per cent of total farmers under the WFBAS by 2025 and 5 per cent by 2030. The forecast results showed that rough rice production would increase by 0.119 million tonnes if the adoption goal of 3 per cent is met by 2025 and that would be 0.214 million metric tonnes for 5 per cent adoption by 2030. Therefore, the investment in the dissemination of the WFBAS in the smart farming process will be beneficial for sustainable rice production and increase farmers’ income.

Finally, a successful and extensive implementation of WFBAS in the rice production system would assist Bangladesh in achieving Sustainable Development Goal 2.4, which focuses on rice productivity and profitability for farmers as well as the long-term food security of the country.

Niaz Md Farhat Rahman is a principal scientific and coordinator, Agromet Lab, Bangladesh Rice Research Institute.​
 

Saif

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Food minister seeks support from FAO to boost mango export
United News of Bangladesh . Dhaka | Published: 19:15, Mar 14,2024

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-- UNB photo.

Food minister Sadhan Chandra Majumder on Thursday sought support from the Food and Agriculture Organisation to increase mango export from Bangladesh.

He sought the assistance when Jiaoqun Shi, FAO representative in Bangladesh, paid a courtesy call on him at his secretariat office.


During the meeting, they discussed the development of the country's food management and international commercialisation of local fruits.

The food minister said that Bangladesh had achieved self-sufficiency in the production of cereals.

Besides, the production of fruits and vegetables has also increased a lot, he said adding that the country produced about 25 lakh tonnes of mangoes annually but the amount of export was low compared to production.

Jiaoqun Shi said that FAO was working to strengthen food security around the world and it would continue its support to ensure food security in Bangladesh.

Food decretary Md Ismail Hossain and director general of Food Directorate Md Shakhawat Hossain, among others, were present at the meeting.​
 

Saif

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Agriculture must adapt to climate change​

Our food security, farmers’ survival are at stake

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VISUAL: STAR

It is a proven fact that climate change is severely affecting agriculture in Bangladesh. Temperatures are consistently rising along with decreased rainfalls, leading to increased salinity, and thus changing our once-fertile lands into dust bowls or lands with poor yields. Its implications for our food security cannot be more profound. Take rice, our main staple. Varieties that need expensive fertilisers and pesticides have replaced many indigenous, high-yielding varieties of paddy that were nutritious and required no chemicals to grow. While we commend the efforts of the agricultural agencies in developing climate-resilient crops, future efforts must reflect the urgency and innovation necessitated by the intensifying climate change.

A report on Koyra, Khulna tells a positive story about how vast lands left barren by increasing salinity are being turned fertile with farmers planting paddy, vegetables and fruits, while also engaging in fish farming. This has been possible through various government bodies, such as the Department of Agricultural Extension and the Bangladesh Agricultural Research Institute (BARI), which support farmers by providing them with salinity-resistant seeds, advice, training and fertilisers. By adapting to cultivation of salinity-tolerant crops and going into fish farming, these farmers are becoming more solvent and do not have to leave their homes to seek employment elsewhere. Therefore, the community as a whole has benefitted.

The Koyra model must be replicated all over the country, especially in districts like Patuakhali where many farmers have had to abandon their ancestral profession for low-paying jobs in the cities, because the lands they grew crops in have become barren. A report in this paper quotes an official of the Meteorological Department of Patuakhali stating that over the last six years, the average temperature in the district has increased by at least 4.5 degrees Celsius. Rains start much later than before and for shorter periods of time. The high temperatures destroy many of the paddy saplings, and lack of rain leads to low-quality yields, only fit for poultry feed. The number of people engaged in agriculture has thus significantly dropped in the last 10 years.

The government must focus on these districts—once major producers of crops but now left with vast areas of fallow lands. We urge the government to mobilise its relevant agricultural bodies and collaborate with private organisations to invest in research of climate-resilient crops specific to these districts. The government should incentivise farmers to return to their farmlands and grow crops again.​
 

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