Published: 12:47 AM, 09 June 2026
Reflections on Agricultural Development in National Budget
Mohammad Arifur Rahman
Bangladesh is gradually progressing toward development. Although the pace may appear slow, the country continues to move forward. If sector-wise development is measured through various indicators, it becomes evident that remarkable progress has been achieved in several areas. Among the most visible success stories are the garments sector, agriculture, and remittances. In particular, the advancement of agriculture has been both noticeable and widely appreciated.
At one time, the driving force of Bangladesh's economy was rural based. National development strategies revolved around villages and rural livelihoods.
Agriculture and agricultural producers form the foundation of Bangladesh's economy, food security, and rural life. Over the past two decades, significant changes have occurred in the agricultural economy. The share of agriculture in the national budget has declined, agriculture's contribution to GDP has decreased, and the proportion of the workforce engaged in agriculture has also fallen. Yet agricultural production has increased substantially. Despite population growth and a reduction in cultivable land, Bangladesh has achieved near self-sufficiency in food production. Thus, even while economic indicators related to agriculture have declined proportionately, the sector's development remains highly visible. Before discussing the main issues, let us examine some statistics.
Agricultural Budget Trends from FY 2006-07 to FY 2024-25
Between 2018 and 2022, Bangladesh recorded the lowest share of budgetary allocation to agriculture in its history, with only 2.7 percent of the total budget dedicated to the sector. In contrast, in FY 1977-78, shortly after independence, the total national budget was Tk. 2,176 crore, and nearly 26 percent was allocated to agriculture and rural development. At that time, rural-centered development was a key policy priority. This indicates that successive governments have historically recognized the importance of agriculture and rural development.
The decline in agriculture's budget share can largely be attributed to increased allocations for industry, infrastructure, education, healthcare, electricity, and social protection programs.
At independence, Bangladesh had a population of approximately 70 million and cultivated 9.13 million hectares of land, producing 11 million metric tons of food grains (rice and wheat). Today, the population is nearly 180 million, while cultivable land has decreased to 7.88 million hectares. Despite this reduction, food grain production has increased to 42.7 million metric tons. In other words, while the population has increased by about two and a half times and agricultural land has declined by nearly 15 percent, food production has more than quadrupled.
Agriculture continues to face growing challenges, including climate change, cyclones, storm surges, and adverse environmental conditions. Despite these obstacles, agricultural development has continued. Maintaining this momentum remains one of the government's major challenges.
It is true that agriculture has been given priority in the government's election manifesto. However, practical implementation of those commitments is essential.
The manifesto emphasized farmer protection through farmer cards, ensuring fair prices for agricultural products, and introducing agricultural insurance. These initiatives could encourage greater investment in agriculture by reducing uncertainty among producers. Previously, farmers were often concerned about receiving fair prices for their produce.
Moreover, farmers in coastal and hilly regions remain highly vulnerable to sudden floods, cyclones, embankment failures, and climate-related disasters. In the Haor regions, particularly around Hakaluki Haor, farmers face recurring risks of flash floods during harvest seasons. This year's flash floods caused significant crop losses and widespread suffering among farming communities.
Beyond food security, the government must also consider social protection. Many farmers take short-term agricultural loans to finance crop production but are unable to harvest their crops due to natural disasters and climate risks. Agricultural insurance could provide compensation for such losses. In this context, crop insurance has emerged as a logical and necessary demand.
Crop insurance was included in the government's election manifesto, and initiatives have already been taken toward its implementation. The process of developing a crop insurance policy has begun. While this is encouraging, some remain skeptical about whether it will ultimately be implemented. Tangible progress will only become visible when budgetary allocations reflect these commitments.
To reduce farmers' vulnerability to natural disasters and ensure stable agricultural production and food security, the government is considering introducing crop insurance, even if subsidies are required. Such a program could play a vital role in strengthening food security. Although crop insurance involves certain risks and implementation challenges, many stakeholders would welcome this initiative as being in the national interest.
A significant portion of the agricultural budget is spent on fertilizer subsidies, agricultural machinery, irrigation and water management, seed development, research, incentives, development projects, agricultural credit support, and the development of climate-resilient varieties and technologies.
The election manifesto outlined at least twelve key commitments aimed at modernizing and commercializing the agricultural sector. Educated young people are increasingly showing interest in agricultural entrepreneurship, and many expatriates are returning home to invest in agricultural businesses. The nature of agricultural business has also evolved. In the past, agricultural trade largely involved purchasing storable commodities during harvest seasons and selling them during off-seasons. Today, the sector has become much more diversified and dynamic.
In the modern world, virtually every activity is assessed based on financial profitability. Investment decisions, in particular, require careful analysis of costs and returns. Traditionally, agriculture in Bangladesh was largely subsistence-oriented, where farmers were satisfied if they could meet their family's basic needs. That mindset is changing. Farmers increasingly view agriculture as a business and evaluate it in terms of profit and loss. Educated youth are investing in agriculture and seeking profitable opportunities within the sector.
Government plans include the introduction of agro-entrepreneurship startup programs and the establishment of entrepreneur platforms. At the same time, there are strategies for achieving sustainable agricultural development in the era of the Fourth Industrial Revolution. These initiatives will create pathways for educated young people to become agricultural entrepreneurs. Modern technologies will be adopted in the field, enabling the production of high-quality agricultural products at lower costs while ensuring competitive market prices for consumers.
Entrepreneurs will bring innovation and creativity to agricultural businesses, aligning production with both domestic and international market demands. This will promote agro-processing industries and agriculture-based enterprises, generating employment opportunities and stimulating economic growth.
In addition to commercial agriculture, climate-resilient agriculture remains a priority within government planning. Adaptation measures and strategies for coping with climate-related challenges are being incorporated into national agricultural development plans.
Overall, Bangladesh must continue its transformation from subsistence agriculture to commercial agriculture while ensuring farmer protection, food security, and modernization of the agricultural sector. Greater emphasis should be placed on mechanized farming. Integrating information technology into agriculture and expanding export-oriented agricultural production are urgent priorities.
Effective agricultural development requires sound planning and efficient implementation strategies. Even the best initiatives can encounter difficulties if planning is inadequate. Likewise, well-designed plans may fail due to poor implementation. The sooner realistic and practical planning receives proper attention, the sooner Bangladesh, its farmers, and its agricultural sector will benefit.
There is little doubt that this will be an expansionary budget. However, given persistently high inflation, sluggish revenue collection and limited implementation capacity, what the country needs is a disciplined and realistic budget. Its objectives should be to establish good governance, reduce social inequality, ease the hardship of low-income people and curb rent-seeking and corruption. Greater emphasis should be placed on productive sectors such as agriculture, education and healthcare, while expenditure on less productive sectors should be reduced.
Controlling inflation, increasing investment, creating employment and boosting production should be the principal goals of the budget. In this context, caution should be exercised in allocating resources to non-development expenditure. Bangladesh now requires a realistic budget that prioritizes reducing government operating costs and improving the quality and efficiency of public spending.
One of the key indicators of economic development is GDP growth. Every budget gives considerable importance to the growth target. For the current fiscal year, GDP growth was projected at 5.5%. However, development partners have forecast significantly lower growth. The World Bank estimates growth at 3.1%, the International Monetary Fund (IMF) at 4.7%, and the Asian Development Bank (ADB) at 4.0%.
We remain hopeful that the upcoming national budget will give greater priority to agriculture as part of the government's broader development vision.
Mohammad Arifur Rahman is
Project Director at Department of Agricultural Extension (DAE),
Dhaka and a agricultural
development practitioner.
