SANEM, a leadng economic think tank stresses need for interest-free loan rather than a 4% interest loan for farmers, saying that it must also be ensured that only genuine farmers, those who need it have access to the loan.
Dr. Selim Raihan, Executive Director of South Asian Network on Economic Modeling (SANEM) presented four points of suggestion for the agricultural sector of Bangladesh, in the present context of COVID-19 Pandemic.
Dr. Selim feels that only disbursement of loans is not enough. Supply chain of agricultural materials has been disrupted due to the current crisis and ongoing lockdown. Thus, the farmers’ access to agricultural materials and tools must be ensured.
“We have been pointing out that, due to the lockdown the internal mobility of agricultural workers has been curtailed.
To address the issue of the supply chain of agricultural materials and mobility of agricultural workers”, he added, citing that that they have been suggesting inter-ministry collaboration among the Ministries of Health, Agriculture, Home and Ministry of Road and Transport.
Local administration, local businessmen, and network of agricultural workers also need to collaborate in this regard. Specific health protocol for agricultural workers should be developed, he added.
For years, we have been seeing that the farmers are not getting the fair price for their crops, and middlemen are depriving farmers of their rightful share.
Even in the case of a price hike of paddy and rice, mill owners become the beneficiary, not the farmers. In the context of the current crisis, we believe, this problem must be addressed.
He further said since the local administration is now very active at the grassroot level, during the ongoing crisis, in collaboration with the local administration it is necessary to increase substantially the amount of government procurement of paddy directly from the farmers at a fair price.
In this regard, SANEM suggest, the government warehouses are utilized to the maximum. If the government warehouses fall short, then private warehouses should be rented by the government.
Dr. Raihan said that the ongoing crisis demands putting highest priority to agriculture and food security. In behalf of SANEM, he appealed to the policymakers to consider these suggestions.
