Tajwar Awal Calls for Structural Reforms in Agriculture and Energy Sectors

Bangladesh’s economy now stands at a critical juncture where the national budget is no longer merely an annual statement of income and expenditure—it has evolved into a key instrument for shaping the country’s economic trajectory. Yet, in practice, budget formulation continues to lean more toward increasing allocations rather than introducing meaningful structural reforms. This gap is most evident in the agriculture and energy sectors.

For years, agricultural performance has been measured primarily by output volume. However, the question of how much economic value this production actually generates remains largely overlooked. Each year, Bangladesh imports agricultural inputs worth approximately $1.5 to $2 billion, a significant portion of which is high-priced hybrid seeds. At the same time, an estimated 20 to 30 percent of domestically produced fruits and vegetables perish before reaching the market. As a result, a considerable share of agricultural output fails to translate into real economic value. In the vegetable sector alone, such losses amount to several thousand crore taka annually.

Against this backdrop, the role of the national budget is undeniably important. However, the core challenge lies not in allocation but in effective implementation. Sustained, long-term investment is essential for developing new crop varieties, climate-resilient technologies, and high-yield seeds—areas where progress remains below expectations.

Meanwhile, the energy sector is exerting a silent but growing pressure on agriculture. The country’s energy import bill has already risen to between $8 and $10 billion, driving up costs in irrigation, cold storage operations, and transportation. Consequently, the overall cost of agricultural production continues to climb.

Experts suggest that integrating solar power generation with agricultural activities on the same land could offer a viable solution. However, supportive policies for such initiatives remain insufficient.

The upcoming FY2026–27 budget presents a crucial opportunity. It can be used to reduce production costs in agriculture, lessen dependence on imported energy, and address existing infrastructure gaps. Yet, if the trend of incremental adjustments persists, both sectors risk remaining trapped in the same cycle.

The real challenge for policymakers now is not simply to increase allocations, but to ensure effective and sustainable structural reforms.