The government’s recent decision to increase diesel prices by Tk 20 per litre is expected to significantly raise farming costs across Bangladesh, exacerbating challenges faced by farmers amid an ongoing fertiliser shortage. Announced on Sunday, the adjustment also affects three other petroleum products, with diesel—the most commonly used fuel in agricultural transport, irrigation, and power generation—now priced at Tk 135 per litre.
This price rise comes at a critical time as farmers prepare for the Aman paddy harvest, the country’s second-largest rice crop, due to begin in November. The increased diesel cost will directly impact expenses related to operating combine harvesters and threshers fueled by diesel. Following Aman, the Boro crop season will commence, which heavily depends on diesel-powered machinery for tilling, cultivating, irrigation, harvesting, and threshing. Boro accounts for approximately 55 percent of Bangladesh’s annual rice production.
Bangladesh’s agricultural sector utilizes over 2.1 million units of farm machinery, including 380,000 power tillers and more than 1.2 million diesel-powered irrigation pumps. According to estimates by the Bangladesh Petroleum Corporation, these machines consume around 1.255 million tonnes of diesel annually, with agriculture accounting for over 15 percent of the country’s yearly fuel consumption.
Farmers have expressed concerns that the diesel price hike will increase production costs, especially from November onward, when machine-dependent harvesting intensifies. Many are apprehensive about absorbing these additional expenses amid stagnant or declining rice prices. Recent data from the Trading Corporation of Bangladesh shows retail coarse rice prices in Dhaka have decreased to Tk 50-55 per kilogram, down from Tk 55-60 per kilogram a year ago, posing a squeeze on farmers’ incomes.
Bablu Molla, a farmer from Jhenaidah’s Harinakundu upazila, highlighted the financial strain the increase will impose. “With fuel prices rising, everything else will get more expensive too,” he said, noting that Boro cultivation requires extensive irrigation. Molla warned that many farmers might reduce cultivation or face losses due to insufficient rice prices over the past two seasons.
Similarly, Amzad Hossain from Rangpur’s Kaunia upazila emphasized that without an increase in crop prices, higher diesel costs will translate into losses. Hamidul Islam, a farmer from Lalmonirhat Sadar, underscored the indispensability of diesel in farming operations, stating the price hike will negatively affect farmers’ livelihoods.
Economists have warned that rising input costs may dampen overall agricultural output and contribute to higher inflation. Agricultural economist Jahangir Alam Khan recommended providing incentives or subsidies to alleviate the burden on farmers, citing potential threats to food security if the current trends continue.
Md Rostom Ali, a professor at Bangladesh Agricultural University’s Department of Farm Power and Machinery, stressed that farmers have little influence over input prices and often receive low returns, which could worsen with rising fuel costs. He suggested that farmers may reduce spending on other inputs or modify farming practices, risking reductions in productivity and household income.
As the government balances import costs influenced by geopolitical tensions, including the US war on Iran, the agricultural sector faces heightened uncertainty amid these economic pressures.