For all latest news, follow the Daily Sun's Google News channel.
Agriculture is the main source of employment and income for the rural people of Bangladesh. According to BBS, about 46 per cent of the country’s labour force is engaged in the agricultural sector. However, many administrative and informational limitations still act as barriers in identifying farmers correctly, reaching government assistance, providing agricultural loans and subsidies, and implementing agricultural policies. Against this backdrop, the government’s proposed “Krishak Card” programme can surely act as an important policy initiative in agricultural management.
Farmer ID, agricultural credit card or farmer registration system is in operation for farmers in different countries of the world. These initiatives have played an important role in the financial inclusion of farmers, distribution of agricultural subsidies, and development of agricultural management. In the case of Bangladesh too, such an initiative can modernize and make the agricultural service system effective. However, it is important to take into account the possible limitations for its successful implementation.
The most notable example of providing card or registration-based benefits to farmers is India's Kisan Credit Card (KCC). The main objective of this program, launched in 1998, was to provide loans to farmers on easy terms and provide the necessary capital for agricultural production.
Currently, about 7.75 crore farmers in India have KCC accounts and a large amount of agricultural loans have been disbursed through it. Studies have shown that through the KCC system, farmers are able to easily get loans and use seeds, fertilizers, pesticides and other agricultural inputs, and in many cases, dependence on moneylender loans has been reduced.
European Union countries have a farm registration system for farmers, through which farmers are registered and agricultural subsidies are directly paid to the farmer's bank. Similarly, in the United States, subsidies, crop insurance and disaster assistance are provided to farmers through the Farm Number or Farmer ID system.
According to news sources, 10 types of benefits will be available in the card, such as agricultural inputs at fair prices, government subsidies, government incentives, irrigation facilities at fair prices, easy agricultural loans, agricultural insurance facilities, facilities for selling agricultural products at fair prices, agricultural training, weather information and advice on disease control.
According to media reports, there are plans to launch the farmer card on a pre-pilot basis by 14 April. In the first phase, about 25,000 farmers from 9 upazilas of 8 districts of the country will reportedly come under this facility. The pre-pilot programme will be implemented by the Department of Agricultural Extension (DAE). Through this, a comprehensive database of farmers will be created, subsidy cards will be distributed and agricultural-related information will be collected.
This card is going to help marginal farmers avail various government benefits while information related to farmers' production, land, crops and varieties will be stored together. It makes us really optimistic that the Krishak Card will be launched in all the upazilas of the country within the next four years after the pre-pilot and pilot stages.
The issue of farmers getting a fair price for their produce through the Krishak Card is quite important. In this case, it is necessary to ensure direct market penetration by ensuring the identity of the farmer. Market connectivity can be increased as much as possible by establishing at least one "Krishak Bazar" in each upazila or by developing the existing market system on the model of Krishak Bazar.
The government procures various agricultural products including paddy and wheat at a fixed price. Many times, actual farmers cannot participate in this process. If farmers are registered through the Krishak Card, it will be possible to give priority to card-holding farmers in the government food procurement program. This will enable farmers to ensure a fair price for their produce.
If the Krishak Card is linked to a digital platform, farmers can easily know the current price, demand and supply information of different markets. If market information is known, the farmer will reduce the risk of selling products at a low price and he will be able to sell products in the appropriate market.
If farmers are given the opportunity to use warehouses, cold storage or storage facilities through the farmer card, it is expected that they will no longer be forced to sell their crops at a low price due to excess supply during production. If there is storage facility, they will be able sell the produce at the right time and get a good price.
The role of middlemen in the agricultural market system of Bangladesh is high in many cases. If the farmer can be directly linked to the buyer, wholesaler or processing company through the farmer card, then the number of middlemen will be reduced and the farmer will get more value.
If it can be integrated with the market, credit, information and marketing system, then the farmer will get significant benefits in getting a fair price for his produce. However, its successful implementation requires a proper farmer database, transparent management and effective reform of the agricultural market system. With proper planning and proper implementation, the farmer card can usher in a new era in the agricultural system of Bangladesh.
_____________________________________
The writer is Principal Scientific Officer, BARI, and former National Consultant, FAO, United Nations. He can be reached at [email protected]