Farmers’ rice production costs shot up while their profit dropped over the years amid declining fertility of land, according to new findings of the Bangladesh Institute of Development Studies (BIDS).
The production cost surged from Tk10.51 per kg in 2012 to Tk11.67 per kg in 2015 and Tk12.88 in 2018. The cost rose further by 3.45 percent during the following years.
But their profit marginally gained from Tk16.17 per kg to Tk16.52 and Tk17.48, with 1.31 percent average profits per kg rice.
The study report called “Agricultural Productivity and Technical Efficiency in Bangladesh” was shared on the last day of a four-day annual conference of the BIDS held at a city hotel on Tuesday.
“Farmers are getting less return on their investment. Because their costs are increasing faster than the cost of their products. This trend has created an increasing economic challenge for them,” said Taznoore Samina Khanam a BIDS research fellow, while presenting the study highlights.
Meanwhile, the fertility of agricultural land has been declining gradually while excessive use of fertiliser, pesticides, and underground water is causing environmental degradation over the years, says the study report.
Land fertility slightly increased to 3.30 percent during 2001-2010 from 2.75 percent during 1991-2000. However, it drastically dropped to 0.44 percent negative during the 2011-2020 period.
Land productivity significantly relies on the effective utilisation of human resources; however, the study also reveals a decline in the productivity of farm workers.
The study emphasises the importance of agricultural productivity, technical efficiency, and resource utilisation in the country. To enhance soil fertility, it suggests improving soil health, conducting regular soil tests to restore fertility, applying organic fertilisers, and practicing crop rotation (growing different crops in the same field).
