Experts and policymakers in Bangladesh are calling for the creation of an Agricultural Price Commission to ensure fair pricing for farmers and stabilize the agriculture sector—the country’s largest source of employment. Despite being a global leader in several crops, the sector suffers from price volatility, climate shocks, profit-driven middlemen, and declining growth, which fell to just 1.79% in FY2024–25. Agricultural employment has dropped from 62% in 2000 to 35.27% in 2025, with both male and female participation declining in recent years. Speakers emphasized that a price commission could set minimum support and procurement prices, protect farmers, stabilize markets, and support food security. The government is reviewing India’s minimum support price model and planning a 25-year agricultural roadmap, but experts stress the urgent need for political will, reliable data, and climate-resilient strategies to safeguard the sector and retain farmers.
Bangladesh urgently needs to establish an Agricultural Price Commission to ensure fair pricing for farmers and stabilise the agriculture sector—the country’s largest source of employment—experts and policymakers said yesterday.
Despite being a cornerstone of food security and jobs, the agriculture sector continues to face price instability, weather unpredictability, and profit-driven middlemen—yet it lacks any institutional mechanism to regulate farmgate prices, they noted.
Speaking at a discussion titled "Protecting the Farmers: The Case for an Agricultural Price Commission"—organised by Khani and the Participatory Research and Action Network (PRAAN) at The Daily Star Centre—experts highlighted how other sectors like power, pharmaceuticals, and tobacco already have price-regulating bodies in place.
Jahangir Alam Khan, a leading agricultural economist, emphasized that forming a commission is crucial to declare minimum support and procurement prices for crops. This would help shield farmers from price volatility while encouraging production.
“Many countries have already set up such bodies to regulate agricultural prices,” Khan noted. “They are instrumental in ensuring farmers receive fair prices, markets remain stable, and consumers are protected.”
He added that a scientifically-driven, independent commission could deliver sound recommendations by analysing both domestic and global market conditions—benefiting producers and consumers alike.
Khan also pointed out that the National Agricultural Policy 2018 includes a recommendation to form a structured commission to improve agricultural marketing, guarantee fair returns for farmers, and maintain affordability for consumers.
Bangladesh currently ranks among the top 10 global producers of 22 major crops—including third in rice and vegetable output, first in jute, seventh in potato, and fifth in aquaculture—yet the absence of a regulatory body leaves its farmers vulnerable.
In recent years, Bangladesh's agriculture sector has experienced a noticeable slowdown in growth, raising serious concerns over food security, rural livelihoods, and the broader economic recovery.
Delivering the keynote at the event, Umme Salma, programme coordinator at PRAAN, highlighted that the sector grew by just 1.79 percent in fiscal year 2024–25—the weakest performance in over a decade, matching the lowest growth rate in the past 11 years.
“This slowdown is primarily due to flooding, followed by droughts and heavy rainfall, all of which have severely disrupted cultivation,” she explained.
She also pointed out a significant drop in agricultural employment—from 62 percent in 2000 to just 35.27 percent in 2025—underscoring the urgent need to ensure fair profits if farmers are to be retained in the sector.
Sharmind Neelormi, professor of economics at Jahangirnagar University, noted shifting gender dynamics in agriculture. From 2000 to 2016, male participation declined while female involvement rose. However, between 2016 and 2023, female participation also began to fall.
Adding to the concern, PRAAN’s Chief Executive Nurul Alam Masud stated that agriculture’s shrinking contribution to GDP suggests the sector is increasingly being sidelined.
Farah Kabir, country director of ActionAid Bangladesh, stressed the need for climate-resilient agricultural strategies.
“We must factor in the effects of climate change when planning production. Our interventions should be tailored to the unique needs of each region,” she said.
Former agriculture secretary Anwar Faruque identified the lack of fair pricing for farmers as the sector’s most pressing issue.
“Even a minimal level of government support could make a big difference,” he said. “Yet, Bangladesh has not even taken the initial steps toward establishing a price commission.”
To illustrate, he pointed to West Bengal, India, where the government procures 20 percent of total rice output. “In Bangladesh, that figure is less than 1 percent. How can we expect farmers to receive fair prices under such conditions?” he asked.
A lack of coordination among the relevant ministries remains a key issue that must be resolved first, one speaker emphasized.
Md Abdul Muyeed, former director general of the Department of Agricultural Extension, noted that consumers often hold a negative perception.
“Whenever market prices rise, they’re quick to question the increase without recognizing the growing challenges faced by farmers. This is why greater public awareness is essential,” he said.
Mihir Kumar Roy, former dean of the Faculty of Business and Economics at City University of Bangladesh, stressed the need for political will to ensure fair prices for farmers.
“There is no alternative—government commitment is crucial,” he asserted.
Md Mahmudur Rahman, additional secretary at the Ministry of Agriculture, mentioned that Bangladesh is currently reviewing India’s minimum support price mechanism for 23 products, but emphasized the importance of considering such policies specifically for perishable items.
“The government has already initiated strategic planning in this direction,” he added.
Highlighting a critical issue, Mohammad Emdad Ullah Mian, secretary at the Ministry of Agriculture, said the sector’s biggest challenge lies in the absence of reliable data and statistics.
“Data manipulation has been a longstanding concern. Accurate information could significantly benefit farmers,” he said.
Drawing on his experience with the farming community, Mian reaffirmed the ministry’s commitment to fostering a farmer-friendly ecosystem.
“We’ve identified six agricultural hotspots and outlined nine thematic areas for professional development. These will guide the formulation of a comprehensive 25-year agricultural roadmap,” he added.
Delivering the keynote at the event, Umme Salma, programme coordinator at PRAAN, revealed a sobering reality: Bangladesh's agriculture sector grew by just 1.79 percent in the fiscal year 2024–25—the weakest pace in over a decade and on par with the lowest level in the past 11 years.
"This is not just a number—it’s a warning," she said. "Floods, followed by relentless droughts and erratic rainfall, have ravaged our fields and crippled cultivation."
Even more alarming is the exodus from the land itself. The agricultural workforce has plummeted from 62 percent in 2000 to just 35.27 percent in 2025.
"If farmers continue to walk away because they can't make ends meet, who will feed the nation?" she asked.
The message was clear: unless urgent action is taken to protect farmers, ensure fair profits, and defend agriculture against climate extremes, the backbone of Bangladesh’s economy may begin to buckle—and with it, the nation’s food future.
