Cut in This Year's Boro Production Cost

Farmers happy, sharecroppers still incur loss in north

EAM Asaduzzaman, Nilphamari

Farmers bring newly harvested boro paddy to Dhela Peer market in Nilphamari district as the growers eye profit due to decreased production cost this year.Photo: STAR

This year's boro production cost in the northern region sees a decrease of Tk 3.00 to Tk 4.00 per kg compared to that of last year as favourable weather and the government's diesel subsidy, electricity rebate and drastic cut in fertiliser price helped boost production. As per assessment of the Department of Agriculture Extension (DAE) in the district, a farmer having own land and irrigation pumps had to spend Tk 12.50 for producing a kg of boro paddy this year while the cost for sharecroppers or contract farmers stood at Tk 18.50. In last year, the two types of farmers had to spend on an average Tk 16.50 and Tk 21.50 respectively. As rice is selling at Tk 13.33 -- Tk 14.66 a kg in different markets in the district, farmers having own land and irrigation pumps are now able to make profit but a large number of sharecroppers are still incurring losses. The production cost for boro paddy includes cost for seeds, fertiliser, pesticide, labour, diesel or electricity, tilling, interest on money borrowed to bear cultivation costs and others. Diesel or electricity cost of pump owner farmers is half of that of the sharecroppers or contract growers. Landowner farmers do not have to pay anything for land fare. The sharecroppers or contract growers have to face higher production cost as they have to pay share of harvested paddy or contract money of Tk 6000/ per acre to land owners and pay Tk 8000/ or Tk 5000/ to diesel or power run pump owners for irrigation charge in addition to other usual cost. "Decrease in boro production cost by Tk 3.00 or Tk 4.00 has been possible this year as the government greatly reduced price of fertiliser and gave subsidy in diesel. Favourable weather also helped increase of production and it led to further decrease in average production cost, he added. Decrease in production cost is almost the same in eight districts of the region," said AFM Mokbul Hossain Noori, deputy director (DD) of DAE in the district. Farmers and DAE sources said that this year fertiliser cost for an acre (100 decimal) of land is reduced to Tk 3,740 this year which was Tk 4,700 last year. Moreover, 1.5 lakh small and marginal farmers and sharecroppers received Tk 800--Tk 1000 as diesel subsidy, they said. Power pump owners also get 20% rebate against electricity charge for irrigation. This year's favourable weather also helped boro farmers including sharecroppers to get bumper harvest as they are getting average 2.23 tonne of paddy in an acre and it led to further decrease in their production cost. Last year's production was about 2.00 tonne per acre, said sources. Farmers Mizanur Rahman of Itakhola village of Sadar upazila, Ramzan Ali of Gayabari village of Dimla upazila and many others said that boro farmers are more or less happy this year as they have made profit after incurring losses for many years. During visit to different paddy markets of the district like Mirganj, Tengonmari, Shakhamacha Haat and Dhela Peer Hat, this correspondent found that presently a bag of boro paddy weighing 75 kg is selling at Tk 1000--Tk 1100, depending on dryness. And so, farmers are getting Tk 13.33 -- Tk 14.66 for a kg. Accordingly, the landowner farmers are now able to make a profit of Tk 2.16 per kg while the sharecroppers are still incurring loss. Raquibul Alam Chowdhury, president of district rice mill owners association, said the price of paddy is likely to rise as the food department will start large-scale purchase of boro rice and paddy soon. The government's purchase rate for a kg of paddy is Tk 17.00 and that of rice is Tk 25.00. But even the government rate will not be enough to make up loss of the sharecroppers, said the growers.