Agriculture incentives to continue in 2016-17, import duty on rice raised

The government has proposed to raise import duty on rice from 10 percent to 25 percent in 2016-17 fiscal year in order to ensure that the Bangladeshi farmers get fair price.

In the budget Finance Minister AMA Muhith proposed in Parliament on Thursday, the government is targeting Tk 90 billion in subsidy and incentive for the development of the agriculture sector.

Muhith proposed to impose 1 percent duty on import of agricultural products to encourage local production.

Agriculture and rural development sector will get Tk 270.94 billion in the upcoming fiscal once the proposed budget is passed.

This is the third highest allocation proposed for any sector in the Annual Development Programme (ADP).

The amount includes Tk 185.48 billion for the rural development sector.

In the current 2015-16 fiscal, the allocation for the agriculture and rural development sector has been revised down from Tk 242.01 billion to Tk 245.21 billion.

The subsidy and incentive for the sector’s development was also brought down from Tk 90 billion to Tk 70 billion in the revised ADP.