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Bangladesh agriculture needs a comprehensive policy

by Rahat Fahmida
It is more than a decade that the Bangladesh Agricultural Economists' Association presented a set of interrelated proposals on national agricultural policy. But. sadly enough, the proposals never came to light. Those proposals were outcome of the First National Conference of the association held in Dhaka in 1978. after which a committee was formed by the government, rather in vain, to formulate policies for agricultural development Another set of proposals has recently been presented to this government on national agricultural policy.
Talking to this correspondent.(Dr) Jahangir Alam of Bangladesh Livestock Research Institute at Savar. who played a leading part in preparing the recent proposals, explained the current situation of Bangladesh agriculture and the factors to be considered for its betterment.
The GDP of Bangladesh increased at a rate of 4.0 per cent during the Fourth Five Year Plan period. The growth rate declined to 3.7 per cent over the Two Year Plan. Second Five Year Plan and Third Five Year Plan periods. The average annual growth rate in agricultural sector declined continually from 3.7 per cent in the First Five Year Plan period to 1.7 per cent in the Third Five Year Plan period. The contribution of agriculture to GDP also decline, recorded a sharp from 60 per cent to 39 per cent over the same period.
The policy makers of Bangladesh are yet to devise an effective strategy for transforming the traditional small holding rice growing peasantry into modern agricultural entrepreneurs. Both scholars and policy makers of the country are becoming increasingly conscious of the need to pay sufficient attention to the conditions under which agricultural activities arc being conducted and the measures necessary to transform the peasants into agricultural entrepreneurs. The recently present proposals will help them prepare a comprehensive policy for development of the agricultural sector In Bangladesh.
Alam said, an ■grlcnftnrnl-led development is a precondition to overall growth and development of Bangladesh economy. He went on to explain. the linkage between the agricultural and the non-agricultural sectors is such that a
given increase In the value addition created through agricul ture would lead to more than proportionate Increase in that of the non-agricultural sector. Given the resource endowments and structural features, an agricultural-led growth would ultimately lead to Industrialization in the long run. absorbing surplus labour from agriculture.
Giving a detailed view of the expected growth rate, the researchist said. "Our population Is going up at the rate of 2.2 per cent per year. At this rate, the population of the country will be more than 130 million by 2000. If this population is to be provided with required calories from domestic sources, production of grains must go up to 25 million tons by the end of this century."
Given that our grain production now amounts to 19 million tons, an increase In output by more than six million tons by the year 2000 would call for a growth rate not less than 3.5 per cent per year during the 90s. This is substantially higher than the growth rate of the last few decades.
However, this growth rate is not an unattainable goal if all necessary measures are adopted by the government to provide the peasants with modern Inputs and credit. Measures will also have to be taken to reduce crop damage because of floods, droughts etc. The policy measures suggested are based on the assumption that the government will endeavour to raise the growth rate of foodgrain production by more than 3.5 per cent per annum.
The researchist said, the decline in agriculture s growth rate and relative contribution of agriculture to GDP are associated with a decline In relative share of agriculture to total public expenditure. At least 33 per cent of the total allocation should be devoted to agriculture with substantial increase 1n allocation to crop, livestock. fisheries and forestry sub-sectors.
Alam specified that livestock. forestry and fishery contributed about 13 per cent to GDP al current prices whl< h Is «tib*tantial!v higher than the contributions of other sectors. Yet their importance in our national economy does not appear to have received due consideration.
Lack of proper attention has brought about a decline In the
production of almost all nonfood crops, the production of meat and Inland fish, the depletion of rural forestry and has given rise to an acute shortage of draught power which is reported to be threatening the process of agriculture In many parts of Bangladesh. These point to the need of a more conscious policy for these sub-sectors of the agricultural system by adopting an Integrated agricultural development policy.
There has been a continuous increase in production and acreage of rice in Bangladesh since independence. As a result. pulses and oilseeds have registered negative growth in both output and acreage. As Incomes rise, demand will shift from-cereals to non-ccreals. It is therefore, necessary to encourage crop diversification programme through appropriate price policies and tariff structure, explained Alam.
Alam pointed out the real income of farmers has been declining over the years. Due to high cost of Inputs and low price of outputs the profit margin has come down and the farmers have very little to save and Invest after meeting his consumption needs. A combined policy of input subsidy and price support would be necessary to ensure higher income for them. This will lead to higher production through the adoption of technological innovation in agriculture.
"Agricultural development should be viewed in terms of overall development of the rural community" said Jahangir Alam. This will require an Integrated development programme including employment generation, poverty alleviation. reduction of the growth rate of population, minimisation of environmental degradation, introduction of mass education, provision of balanced nutrition and so on.
"Both long and short-term policies will be required to complete the process of transformation. Short-term policies will help achieving self-sufficiency In agricultural production in near future. Long-term'policies will lead to commercialisation of agriculture on the on^ hand and industrialization on the other,. However, all policies should remain flexible to cope with changing socio-economic and political situation* of the country". stressed Jahangir Alam in conclusion.