TDS Desk:

Rice remains Bangladesh’s staple food crop, cultivated on nearly three-quarters of the country’s arable land. However, the cost of rice production has risen steadily due to high prices of irrigation, labour, fertiliser, pesticides, and almost all other agricultural inputs. In contrast, profit margins remain extremely slim. In many cases, adverse weather or natural disasters also expose farmers to the risk of losing their entire investment. As a result, rice cultivation is doing little to improve farmers’ living standards. Against this backdrop, many farmers are increasingly shifting to comparatively more profitable crops such as maize, pulses, mustard, and various exotic fruits.

Agriculture sector insiders say that compared with maize, wheat, lentils, onions, and garlic, rice currently offers the lowest returns for farmers. Although rice cultivation continues in the interest of food security, declining profitability has gradually dampened farmers’ enthusiasm. In this situation, increasing subsidies and incentives, along with stronger policy support, have become essential to keep farmers engaged in cultivating the country’s main staple. Otherwise, Bangladesh’s food security could come under threat.

According to data from the Department of Agricultural Extension, in fiscal year 2024–25, the production cost of one kilogram of transplanted Boro (hybrid) rice stood at BDT 24.31, while farmers sold it at BDT 27.49 per kg. This means that producing one maund (1 Maund = 37.32 Kg) of rice costs around BDT 972, while it was sold for about BDT 1,100. By contrast, profit margins for alternative crops are relatively higher. Producing one maund of lentils costs farmers around BDT 3,600, which sells for about BDT 4,000. For Murikata onions, production costs are roughly BDT 1,400 per maund, while farm-gate prices hover around BDT 1,600, although prices fluctuate depending on market conditions.

Agricultural economists point out that while costs such as pesticides, fertiliser, seeds, land leasing, and hired labour are included in official cost calculations. When additional expenses, including transportation costs in selling the produce and the farmer’s own labour, are taken into account, profits from rice cultivation become negligible. This is prompting farmers to switch to other crops, potentially posing a risk to national food security.

Agricultural economist Dr. Jahangir Alam told journalists, “Farmers naturally move towards crops that offer higher profits. As a result, maize cultivation is expanding, mango farming is growing in the Barind region, and exotic fruit cultivation is increasing in other areas. In the near future, rice cultivation is likely to decline, creating pressure on the food supply. Since rice is our staple food, this trend could put food security at risk. To keep farmers engaged in rice cultivation, production support must be increased, and price support ensured so that it does not remain an unprofitable crop.”

According to the Bangladesh Wheat and Maize Research Institute, wheat cultivation costs farmers BDT 40,930 per acre. With an average yield of 38 maunds per acre, the production cost comes to BDT 27 per kg. At current market prices, farmers earn a profit of around BDT 19,870 per acre from wheat.

Maize cultivation is even more profitable. Farmers spend about BDT 57,470 per acre to produce maize. With an average yield of 130 maunds per acre, the production cost is roughly BDT 440 per maund. At prevailing market prices, farmers earn a total profit of around BDT 59,530 per acre.

Government agencies consider several factors when calculating the cost of agricultural production, including seed procurement, seedbed preparation, transplanting, fertiliser, and pesticide use, weed control, land preparation, irrigation, labour wages, land lease or sharecropping costs, and threshing. However, agricultural economists and sector stakeholders say that once post-harvest transportation, marketing costs, and additional labour are added, farmers are often left with little to no real profit.

Mazharul Islam, a farmer from Benipara village in Godagari upazila of Rajshahi, told journalists, “During the current Aman season, rice sold at Godagari haat for between BDT 1,200 and BDT 1,250 per maund. At such low prices, it is difficult not only to make a profit but even to recover irrigation and labour costs.” He added, “To save farmers, the minimum price of rice must be set at least between BDT 1,400 and BDT 1,500 per maund. Otherwise, farmers will be forced to turn away from rice cultivation.”

Losses and uncertainty in rice cultivation are accelerating a shift among farmers towards maize and a range of exotic fruits across Bangladesh. Higher profitability and steadily growing market demand are prompting farmers to move away from rice to these alternative crops.

Dr. Mohammad Yunus, research director at the Bangladesh Institute of Development Studies (BIDS), told journalists, “Ensuring fair prices for farmers is important. If they do not, it is natural that they will turn to alternative crops. People’s food habits and tastes are changing, and new products are entering the market. For these reasons, crop diversification by farmers is normal. However, if farmers withdraw from production because they are not getting fair prices, that is a cause for concern. If productivity increases, farmers’ incomes will rise, and then they won’t feel compelled to shift to other occupations or crops.”

According to data from the Ministry of Agriculture, maize production in the country stood at over 2.75 million tonnes in FY 2015–16. Within a decade, production more than doubled to roughly 6.88 million tonnes in FY 2023–24. Although final figures for FY 2024–25 are yet to be released, production is expected to remain close to the previous year’s level.

Bangladesh Wheat and Maize Research Institute (BWMRI) Director General Dr. Md Mahfuz Bajaj believes maize cultivation is becoming increasingly popular mainly because it is profitable and relatively easy to grow. He said to journalists, “The cost of maize cultivation is comparatively low, while profits are high. Demand is strong, so marketing is not a problem. Moreover, almost every part of the maize plant is usable — green leaves can be used as cattle feed, while stalks and residues after harvesting are used as fuel. Naturally, farmers gravitate towards crops that offer higher returns.”

Alongside maize, the cultivation of high-value exotic fruits is also gaining momentum across the country. These include dragon fruit, malta (sweet orange), rambutan, strawberry, avocado, persimmon, longan, cantaloupe, and trellis-grown watermelon. Rising domestic production of these fruits is contributing to the agricultural economy while significantly improving the financial condition of many farming households.

Data from the Department of Agricultural Extension (DAE) show that the total production of exotic fruits stood at 146,922 tonnes in FY 2022–23. This rose to 168,577 tonnes in the following fiscal year — an increase of more than 21,000 tonnes within a year. Mustard cultivation has also expanded sharply. Production was 824,000 tonnes in FY 2021–22. In FY 2023–24, mustard output surged past 1.6 million tonnes. However, production declined slightly in FY 2024–25 due to excessive rainfall. For the current fiscal year, the production target has been set at 1.7 million tonnes.

Commenting on the overall situation, DAE Director General SM Sohrab Uddin told journalists, “It is true that rice is comparatively less profitable. However, a large portion of our agricultural land retains water, and rice is always cultivated on such land. Therefore, there will not be a large-scale collapse in rice farming.”

Noting that no special support is provided exclusively for rice cultivation, he said, “Our agricultural land is shrinking, so we are focusing on increasing productivity. The Bangladesh Rice Research Institute (BRRI) is working on developing new high-yielding varieties. If productivity can be increased, food security will not be affected even if cultivable land continues to decline.”