Fuel price hike: Agricultural sector will be in deep water

Even though the global economy was under severe pressure during the pandemic, Bangladesh has grown by riding on the agricultural sector. However, this sector got into trouble after the price hike of fuel oil in 2021, which drove the costs in almost all types of agriculture up. Another massive price hike will exacerbate the crisis.

Around 13,000-14,000 tonnes of diesel are used in Bangladesh every day and 21.55% of which is directly used for agriculture irrigation. The latest price hike will increase the cost of the farmer by more than 40%.

In addition, the cost of transporting goods in trucks will rise, the price of electricity will rise, and the cost of industrial production will rise due to the price increase of fuel oil. As a result, the living cost of farmers including various materials used in agriculture such as seeds, and pesticides will also go up.

If the cost of production increases so much, many farmers will not be able to produce crops, resulting in a production drop.

The rising costs will repel many farmers away from production, which would eventually create import dependency. The current import amount of 10-15 lakh tonnes of rice may double. At the time of the global food crisis caused by the Russia-Ukraine war, if production declines, the food price will go further up, escalating the suffering of the commons.

Dr FH Ansarey spoke to TBS Senior Staff Correspondent Abbas Uddin Noyon over the phone