Photo : Collected

DHAKA, Jan 21, 2026 (BSS) - Bangladesh Bank (BB) study has laid emphasis on strengthening oversight regarding fertilizer price manipulation by dealers to reduce agricultural products production costs.

The study recommended that the local agriculture office discourage the excessive use of fertilizers and pesticides. 

To reduce import dependence, the study also calls for incentives to encourage the production of high-yield local onion seeds.

The central bank made the recommendations in the study report on ‘Value Chain Efficiency of the Agricultural Products in Bangladesh (2nd Phase)’ jointly conducted by its Chief Economists Unit and Governor Office was published today.

The survey team visited 61 Upazillas of 18 districts to survey five agricultural products, such as paddy/rice, potatoes, onions, broiler chicken and eggs. The survey was carried out from 15 June 2025 to 7 July 2025.

Afterward, the teams collected data from some selected large corporate companies, including Paragon, Nourish, ACI, and Akij at their head offices in July 2025 and early August 2025. This report focuses on only the findings, explaining the underlying reasons, cost and price dynamics, and seasonal factors. This report also offers an outlook on respective commodities in the near future based on the survey’s findings. 

Dr. Md. Salim Al Mamun, Director (Research) of the Bangladesh Bank, delivered a presentation on the study at an event at the central bank headquarters in the city. 

To address price fluctuations in the rice market, the study recommended the immediate withdrawal of import duties on fine rice. 

The report suggested that the government should establish automated paddy dryers in every region and encourage rice mills to install these machines to ensure the highest quality of paddy.

Regarding market conduct, the study advised that authorities allow millers to stock paddy only under specific conditions, requiring them to release a fixed quantity of rice every 15 to 30 days. 

To ensure transparency, this process should be monitored by the Food Safety Authority, and all transactions should be conducted through banks. Additionally, the report suggested withdrawing incentives on maize cultivation and reducing or withdrawing export duties on rice bran.

Recognizing that storage limitations force farmers to sell at lower prices, the study highlighted the need for financial support to build infrastructure. 

For onions, the central bank is advised to introduce a refinance window offering loans at a 4.0 percent interest rate to help small and marginal farmers build storage facilities. These facilities, costing between Tk. 85,000 and Tk. 90,000, would complement the Ministry of Agriculture's subsidy for air flow machine technology, which can significantly reduce weight loss and spoilage.

For potatoes, the report recommended that Bangladesh Bank launch a refinance scheme for large-scale growers to construct model homes for storing produce at minimal costs. 

Furthermore, to support prices, the government is urged to immediately initiate the purchase of potatoes for Open Market Sale (OMS).

The study proposed a major policy shift for the poultry industry, suggesting the introduction of a Minimum Support Price (MSP) for broiler chicken and eggs. 

This policy, aligning with strategies in countries like India and Canada, aims to protect small-scale farmers from unfair competition and market losses.

To further support non-corporate farmers, the report recommended declaring the non-corporate poultry sector an agricultural sector, thereby granting it concessions on electricity bills, taxes, and loans. 

Specific financial recommendations include providing subsidized loans for feed and chick purchases during high-cost periods and for establishing feed mills to foster competition against corporate producers. 

The government is also advised to develop a national buffer stock mechanism to manage surplus supply after major festivals like Eid-ul-Adha.