Bangladesh’s agriculture sector is set to receive a larger allocation in the proposed 2026-27 national budget, but experts have warned that weak implementation and persistent structural challenges could limit the benefits reaching farmers, particularly smallholders.
The observations were made at a roundtable discussion titled “National Budget 2026–27: Strategic Dialogue on Crop-Based Agriculture” held in Gulshan, Dhaka, on Wednesday. The event was jointly organised by LightCastle Partners and the Switzerland-based Sustainable Agriculture Foundation (SAF) to examine budget priorities, policy measures and implementation strategies for the crop sector, said in a press release.
Participants noted that crop-based agriculture remains central to Bangladesh’s food security, rural livelihoods, agro-industrial development and export earnings. Agricultural production grew at an average annual rate of 3.54 per cent between 1999 and 2019. However, the sector continues to face mounting challenges from climate change, increasing dependence on agricultural inputs and significant post-harvest losses.
Agriculture’s contribution to gross domestic product has declined from about 38 per cent in the 1970s to 11.2 per cent currently, according to the presentation.
The proposed budget for the Ministry of Agriculture in fiscal year 2026-27 stands at Tk 28,881 crore, including Tk7,946 crore for development expenditure, compared with an original allocation of Tk27,224 crore in the previous fiscal year. An additional Tk17,001 crore has been proposed for agricultural activities, including fertiliser subsidies.
Presenters noted that the agriculture development budget has nearly doubled to Tk 7,945 crore. At the same time, agricultural subsidy allocations have been reduced by around 1.4 per cent, while some incentives have been shifted to industry through tax benefits. The proposed budget places greater emphasis on irrigation and water management, post-harvest systems and support programmes linked to farmer cards.
The session was moderated by Prof Dr M A Sattar Mandal, Professor Emeritus at Bangladesh Agricultural University and Chief Adviser of SAF Bangladesh. Opening remarks were delivered by Zahedul Amin, Co-founder and Managing Director of LightCastle Partners, while the keynote presentation was made by Zeeshan Abedin, Social Research and Impact Advisor at the consultancy. Closing remarks were delivered by Md Farhad Jamil, Executive Director of SAF Bangladesh.
Participants expressed concern over declining implementation rates of development projects. The implementation rate of the Annual Development Programme stood at 93 per cent in fiscal year 2022-23 and 95 per cent in 2023-24, but fell to 60 per cent in 2024-25 and 62 per cent in 2025-26.
Among the discussants were Md Habibullah, Director (Administration and Finance) of the Department of Agricultural Extension; Anwar Faruk, former secretary and board director of Bangladesh Krishi Bank; Md Hasan Zafir Tuhin, Chairman of the Barind Multipurpose Development Authority; Dr Waiz Kabir, former Executive Chairman of the Bangladesh Agricultural Research Council; Ataus Sopan Malik of A R Malik Seeds; AK Osman Haruni, Senior Policy Adviser for Security and Agriculture at the Embassy of the Netherlands in Bangladesh; and representatives of the World Bank.
Md Habibullah said government initiatives, including pilot farmer card programmes and post-harvest infrastructure development, reflect a strong commitment to improving agricultural productivity and farmers’ livelihoods.
Anwar Faruk said the proposed budget contains positive measures such as reduced duties on essential commodities, tax exemptions on fertiliser inputs and an expanded farmer card programme. However, he stressed that these benefits must effectively reach farmers and help lower production costs.
Speakers also called for stronger implementation of budget measures, greater focus on climate-resilient crop production, improved market systems, reduced post-harvest losses and enhanced support services for farmers.
More than 30 policymakers, agricultural scientists, economists, entrepreneurs, development practitioners and sector stakeholders attended the discussion.
