Govt sticks to old Boro price despite high production cost

The government has kept Boro paddy procurement price unchanged this season, even though farmers say their cultivation costs have risen.

The food ministry will buy 5 lakh tonnes of paddy at Tk 36 per kg during the current Boro harvest season, the largest rice crop in Bangladesh. Last year’s procurement target was 3.5 lakh tonnes.

It will also buy 12.5 lakh tonnes of parboiled rice at Tk 49 per kg.

The nationwide procurement drive for paddy, rice, and wheat will run from May 3 to August 31, Home Minister Salahuddin Ahmed announced after a meeting of the Food Planning and Monitoring Committee (FPMC) at the Secretariat.

“Even a small increase of two to three taka per kilogram could have helped farmers recover rising costs.”

Jahangir Alam Khan, agricultural economist

The announcement comes as farmers begin harvesting the highly irrigation‑dependent crop, particularly in the northeastern Haor region, where costs have climbed following a hike in diesel price.

In its latest Foreign Agricultural Service report, the US Department of Agriculture said farmers in the northern part of the country reported that labour wages were particularly high this year, especially during the peak period of rice transplantation.

Agriculture ministry estimates put the production cost of Boro at Tk 32.97 per kg this season, up marginally from Tk 32.96 last year. Farmers, however, say the figure does not reflect reality.

“I am worried about how I will cover the losses I will incur this year,” said Mohammad Saidur Islam, a farmer from Azmiriganj in Habiganj, who cultivated Boro on 15 acres of land.

Analysts argue the government should raise the procurement price by at least Tk 2-3 per kg, while food and agriculture ministry officials maintain that the current rates ensure a profit margin for farmers.

Abdul Bayes, former vice‑chancellor and economics professor at Jahangirnagar University, said the decision to keep the price unchanged was “impulsive” and it fails to account for inflation and rising costs.

While nominal prices remain the same, farmers are worse off in real terms, according to him.

Prof Bayes also said the one‑paisa increase in estimated costs is unrealistic and insufficient, warning of further strain on farmers.

“Prices should at least cover production costs and include a reasonable profit margin, typically around 10 percent, especially given higher expenses for diesel, transport, and labour,” he added.

Agricultural economist Jahangir Alam Khan said irrigation and fertiliser shortages are likely to reduce output this season, raising per‑unit costs.

“Even a small increase of two to three taka per kilogram could have helped farmers recover rising costs,” he said, urging a review of the pricing decision.

M Asaduzzaman, former research director of the Bangladesh Institute of Development Studies, said the government should open purchase points in every union to minimise farmers’ transport costs.

He warned that with most paddy purchased by private millers, farmers will not benefit unless the broader market aligns with the government rate.