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The
ministry has undertaken successfully a number of policy reforms in
the past for which it has received considerable recognition both
within government and its development partner. Agri sector, by this
time has already achieved the cherished and desired long-term goal
of self-sufficiency in the production of rice. The major success of
the ministry is its unquestioned success in spurring the growth of
crop agriculture while saving considerable amount of local currency
through eliminating the subsidies on fertilizer and also allowing
private trade in fertilizer, minor irrigation equipment and seed
sector. Structural adjustments started with the liberalization of
different agricultural input delivery systems of public sector, such
as-
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Liberalization of trade in
minor irrigation sector and encourage the private sector for
supply of minor irrigation equipment's of the country. This
happened gradually in steps with the removal of restriction of
import of small diesel engine in1986-87followed by the
withdrawal of duty on such imports in 88-89. The subsidy on DTW
was removed in 1992 and BADC-the government organization was
removed from the procurement and distribution of minor
irrigation equipment. These reform measures had a tangible
effect on increasing the demand for irrigation equipment and
consequently the rate of increase in area under minor
irrigation.
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Privatization of trade in
fertilizer with an objective to transfer the fertilizer
management and distribution services exclusively in private
sector; imports of all fertilizers are now being done by private
sector except Urea. The private sector is not restricted from
importing Urea. All fertilizers are being distributed through
private sector dealers through their network . The Government is
providing no subsidy on fertilizers at the farm level and is
selling all fertilizers at full cost pricing. The government has
issued the revised Fertilizer Control Ordinance in 1995 in
consultation with private sector and IFDC for quality control
and regulation of fertilizer prices. This has led to the
increased availability and wider adoption of chemical fertilizer
at the farm level and economic activities in rural areas have
also increased manifold due to the withdrawal of government from
fertilizer distribution.
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Liberalization of trade and
foreign exchange for enhanced participation of private sector in
Agricultural machinery of agriculture business. The Government
has been continually reviewing conditions affecting competitive
trade and taking action to remove barriers.
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Liberalization of
production, processing, distribution and import of seeds to
ensure the participation of private sector seed dealers in seed
industry development. The private sector is now allowed to
import any improved germ plasm for research and development and
to develop its own facilities for producing foundation seeds.
They are also allowed to import and sale seeds except five
notified crops (rice, wheat, sugarcane, potato and jute). As
regard to notified crops, there are procedural formalities to be
observed by the private sector before any import. Private sector
has now taken up programs for production of hybrid rice seeds in
the country.
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Import of agri- machines ,
including power tiller, was liberalized - resulting in the
positive effect on import of power tiller. The area under power
tiller utilization also grew at about 3.5% per annum after
introduction of the liberalization policy.
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Structural changes were
also made in food supply and management system. Open Market Sale
(OMS), procurement of food grains from the farmers at market
prices, abolition of rural rationing system and allowing import
of food grains by the private sector were the measures so far
implemented.
Besides,
structural adjustment, programs were also undertaken in public sector
simultaneously which are as follows:
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In order to improve and
provide the need felt extension services to the farmers at the
grass root level, agricultural extension services were
strengthened through introduction of "Agricultural Support
Service System" in accordance with the provisions of New
Agricultural Extension Policy (NAEP); and
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In order to conduct uniform
and coordinated research activities, agricultural research
system was strengthened following the provision of National
Agricultural Research System (NARS) through bringing ten primary
research institutes under it with Bangladesh Agricultural
Research Council (BARC) at the apex.
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The process of structural
adjustments in agriculture sector has been still going on in
Bangladesh. The observed structural adjustments like
liberalization of investment in minor irrigation sector,
privatization of trade in fertilizer, liberalization of trade
and foreign exchange have already started to effect favorable
impact in the agriculture sector. It is expected that such
favorable trend will continue to prevail in future also.
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