Contemporary Challenges in Agriculture and Way Forward

Over the five and a half decades since independence, Bangladesh has transformed its agriculture, increasing its capacity to feed a population that has grown from 75 million to more than 175 million despite shrinking cultivable land. Yet, emerging challenges threaten these achievements and demand strategic, timely action.

Agriculture’s contribution to GDP has declined from around 38 per cent to 11.2 per cent, but the sector remains vital to livelihoods and food security. Nearly 45 per cent of the workforce depends on agriculture, while farming provides the primary income for over 70 per cent of rural households. In the 2026-27 national budget of Tk 9.38 trillion, the Ministry of Agriculture received Tk 28,880 crore, including Tk 7,945 crore for development. Effective implementation and timely delivery of these resources are essential.

The way forward is clear: strengthen domestic input production, ensure fair prices through effective procurement, reduce climate risks, invest in storage and processing, and modernise agricultural extension so research reaches farmers in practical forms.

Seed security is equally important. Bangladesh produces substantial quantities of rice and potato seeds but remains dependent on imports for several other crops. In FY2024-25, it imported approximately 32,385 tonnes of seeds. Imports meet 75-80 per cent of annual jute seed requirements and 90-95 per cent of maize seed demand. Vegetable, oilseed and pulse seeds also face significant import dependence. Public research institutions and local companies need targeted incentives to develop high-quality, climate-resilient varieties and supply them affordably and on time.

Around 95 per cent of the pesticide market also depends on imports, while domestic production accounts for only 5 per cent. Expanding local manufacturing using imported active ingredients could save approximately Tk 4,000 crore annually. However, strict quality control and safeguards for human health and the environment must accompany this expansion.

Protecting production from fertiliser and fuel shocks is another priority. Rising fuel prices and fertiliser shortages threaten the coming Boro harvest. The United States Department of Agriculture (USDA) forecasts production at around 20.2 million tonnes, 1.4 per cent below the previous year. This remains a forecast, not a final outcome. Strategic fertiliser reserves, diversified import sources, soil testing and guidance on balanced fertiliser application could reduce costs and protect yields.

Farmers also need fair prices. Rising production costs and inadequate returns threaten the economic sustainability of farming. The 2026-27 budget reduced direct cash subsidies by 1.4 per cent for the first time. Although restructuring may be necessary, small and marginal farmers must not suffer. Procurement prices should reflect production costs, and government paddy procurement should prioritise genuine farmers. Digital registration can help ensure subsidies reach intended recipients, while reducing intermediaries’ influence.

Climate change poses another serious threat. Coastal salinity, flash floods in haor wetlands, upstream surges and waterlogging increasingly disrupt production. A Food and Agriculture Organization (FAO) assessment estimates that around one million agricultural households, representing five million people, may need emergency agricultural assistance between June and November 2026-200,000 more households than estimated for September 2025. Around 57 per cent cultivate less than one hectare, and 60 per cent belong to the lowest wealth group. Sylhet, Mymensingh and Rangpur have particularly high concentrations of vulnerable households. Salt-, drought- and flood-tolerant varieties, stronger early-warning systems, accessible crop insurance and improved mechanical harvesting in flood-prone areas should therefore receive priority.

Agricultural challenges continue after harvesting. Inadequate storage, transport and processing reportedly cost Bangladesh around US$2.4 billion annually. Investment in cold storage, modern warehouses, cold-chain facilities and agro-processing could reduce waste, protect farmers’ incomes and stabilise consumer prices. Preserving existing production is as important as increasing output.

With limited scope to expand cultivated land, Bangladesh must close yield gaps, increase value from existing farmland and diversify production. Food security requires more than adequate calories. Greater emphasis on vegetables, fruits, pulses, oilseeds, fisheries and livestock alongside rice would support affordable, nutritious diets. Modernisation must also protect natural resources and reduce environmental damage, with international climate finance and technology transfer supporting the transition.

The way forward is clear: strengthen domestic input production, ensure fair prices through effective procurement, reduce climate risks, invest in storage and processing, and modernise agricultural extension so research reaches farmers in practical forms.

Bangladeshi farmers have repeatedly demonstrated their potential when they receive appropriate technologies and timely support. Policymakers must ensure that budget allocations reach the right farmers at the right time through effective delivery systems. Protecting agriculture means safeguarding national stability, rural livelihoods and the nutritional well-being of future generations.