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Diesel subsidy slashed to one-third

Tk 545for each acre of Boro irrigation

Reiaul Karim Byron
The finance ministry has allocated Tk 250 crore for diesel subsidy although the government allocated Tk 750 crore for it in the budget of the current fiscal year.
According to the subsidy plan, the government will provide Tk 545 for irrigation in each acre of Boro cultivation this season to encourage around 66 lakh farmers and minimise their irrigation cost.
The agriculture ministry yesterday finalised the subsidy amount on the basis of the finance ministry's allocation.
The farmers will now get Tk 180
for per .33 acres of land against their diesel cost of about Tk 1,500 for the same land.
"The amount has been allocated for the time being and may increase in future. We're giving subsidies for irrigation for the first time despite pressures for subsidy from various sectors," Agriculture Adviser CS Karim told The Daily Star yesterday.
Finance ministry officials, however, say it is unlikely that the allocation for irrigation subsidy will exceed Tk 250 crore.
The government is now subsidising Tk 23 to Tk 27 against each litre of diesel due to the price hike ol petroleum products, they add.
"There are additional demands from various ministries for subsidies of Ik 16,000 crore," a finance ministry official told The Daily Star, this is the reason why the finance ministry' cut tire subsidy in irrigation, he noted.
The Department of Agriculture (DAE) through a survey has identified fanners who cultivated Boro on highest 2.5 acres of land and sent to the agriculture ministry on Tuesday a list of farmers eligible for the subsidy.
DAE conducted the survey during January and March on the basis of a policy of tire government on subsidy for irrigation. Distribution of cash subsidy will begin from April 20 and end by May 15, agriculture ministry officials say.
The farmers who have cultivated Boro with irrigation by diesel-run water pumps on the highest 2.5 acres land - - either of their own or leased — will get the subsidy.
A seven-member union-level committee comprising Union Parishad chairman, member, a government-nominated woman member, a fanner, an NGO representative and a block supervisor will manage the subsidy distribution.
The district and upazila-level committees formed to oversee die distribution will include a member from the join t forces, sources say.
According to an agriculture ministry calculation, about 11.55 lakh diesel-run pumps - 87 percent of the total number — are in operation during this year's Boro cultivation. On the other hand, 80 crore litters of diesel worth Tk 3,200 crore is supposed to be used to run these pumps.
Farmers cultivate Boro on 49.35 lakh hectares of land this year, which was 43.75 lakh hectares last year. Of this, hybrid Boro was cultivated on 10.5 lakh hectares of land, according to the agriculture ministry record.
The government projects 1.75 lakh tonnes of Boro production this season, but many are hopeful the production will exceed the target.