Other Agriculture Study

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Promoting Agri-Food Sector Transformation in Bangladesh: Policy and Investment Priorities

(World Bank, Washington, DC, 2020-05-27) World Bank

The agriculture sector has been critically important in reducing poverty in Bangladesh, and further progress in agriculture will remain important as Bangladesh’s economy continues to evolve. Declining agricultural productivity growth poses substantial risk to the development of the rural economy. There are substantial market opportunities for productive diversification and increased value addition for the agri-food sector in Bangladesh. The agri-food ecosystem analysis carried out for this study identifies critical constraints to the diversification and modernization of the agri-food sector. The Covid-19 (Coronavirus) crisis has hit Bangladesh’s economy and its agri-food sector hard and lasting impacts can be expected on the sector. The overall aim of this report is to identify policy and public investment opportunities for increasing agricultural diversification and creating an enabling business environment for private sector investment along the agri-food supply chain using the maximizing finance for development (MFD) framework. The report is intended to provide guidance to the Government of Bangladesh (GoB) to implement and operationalize the strategic priorities of agricultural diversification and commercialization, as outlined in national agricultural policy 2018, to improve farms’ incomes, create rural jobs, and attain nutrition security in the country. The report is also intended to inform the World Bank’s strategies and dialogue for agriculture and rural development in Bangladesh and sharpen priorities for future engagement on agri-food sector modernization initiatives.
Bangladesh Climate-Smart Agriculture Investment Plan: Investment Opportunities in the Agriculture Sector’s Transition to a Climate Resilient Growth Path

(World Bank, Washington, DC, 2019-06-26) World Bank Group

Bangladesh’s agriculture sector is the country’s main source of food security, employment, and poverty alleviation. More than 70 percent of Bangladesh’s population and 77 percent of its workforce lives in rural areas. Nearly half of all Bangladeshi workers and two-thirds of workers in rural areas are directly employed in agriculture. About 87 percent of the nation’s rural households rely on agriculture for at least part of their income. With one of the fastest rates of productivity growth in the world (averaging 2.7 percent per year since 1995, second only to China), Bangladesh’s agriculture sector accounted for 90 percent of the country’s reduction in poverty between 2005 and 2010. This growth has also allowed the country to triple its rice production since it gained independence in 1971 and to halve its food deficit, and with it the number of malnourished people, since the mid-1990s. In 1991, nearly two-thirds of Bangladeshi children were underweight; today that number is less than one-third. Bangladesh faces growing demand for food and pressure from rapid land use change including significant losses of arable land. Population increases to an estimated 186 million by 2030 and 202 million by 2050, increasing income levels, and rapid urbanization at a rate of 3.5 percent annually 1 are expected to shift diets away from rice and wheat toward animal-based diets. At the same time, while Bangladesh produces almost all its own rice, current yield trends indicate production will not be able to satisfy growing demand for cereals (including rice), which is projected to increase 21 percent by 2030 and 24 percent by 2050. Given the increasing population density and continued loss of arable land caused by urbanization and other factors, enhancing the productivity of rice and other staple foods remains crucial. These trends suggest that Bangladesh must sustainably increase food production on far less arable land per capita to continue to strive for self-sufficiency in agricultural production. The World Bank considers climate-smart agriculture (CSA) a strategic priority investment in response to climate change in agriculture. The executive directors of the International Development Association (IDA) of the World Bank Group have recognized the need to address several concerning trends in the world’s poorest countries, including the growing demand for food, the unsustainable pressure of current agricultural practices on agricultural landscapes, the increasing threat of climate change to agricultural productivity, and agriculture’s significant contribution to greenhouse gas emissions.
Bangladesh: Agricultural Insurance Solutions Appraisal Technical Report

(World Bank, Washington, DC, 2018-12-17) World Bank Group

Agriculture is a key sector in Bangladesh, but it is highly exposed to risks. While agriculture is a source of employment and livelihood for nearly one in two adults in Bangladesh and contributes about 16 percent to GDP, it is highly exposed to natural hazards. Indeed, Bangladesh is commonly ranked as one of the most vulnerable countries in the world to natural disasters with agriculture heavily exposed to floods, cyclones, and drought. In 2007, for instance, Cyclone Sidr destroyed 0.69 million ha of cultivated crop lands and killed over 460,000 head of livestock and poultry.In the past, the government of Bangladesh and development partners have provided substantialsupport to farmers in the aftermath of large disasters, but this approach has disadvantages in that support is not guaranteed to farmers and may be slow. In the aftermath of Cyclone Sidr,recovery and reconstruction needs were estimated at USD 1.3 billion, or 28 percent of governmentexpenditures. In spite of efforts by the government of Bangladesh, the gap between available funding and needs is often large and can reach more than USD 1.5 billion in bad years (Air Worldwide and ADPC 2014). Bangladesh often relies on international assistance, as over the past ten years, only 33 percent of disaster-related expenses has been met by domestic resources. In addition, disaster relief transfers often take substantial time to reach beneficiaries and require to divert resources away from long term development projects. Agricultural insurance offers the government a planned, fast, ex ante alternative to ad hoc disaster response, one that (1) reduces the ex post fiscal burden on the government, (2) improves farmers’ resilience to shocks, and (3) supports the expansion of agricultural credit. Every five years on average in Bangladesh, production shocks lead to a drop of up to 50 percent in crop income available for consumption in average rural households. This drop pushes many small- and medium- scale farmers into poverty. Although many Bangladeshi farmers can access credit, their exposure to risks makes formal financial institutions reluctant to lend to them, so that most farmers borrow from informal lenders at average annual interest rates ranging from 19 percent to 30 percent. Agricultural insurance transfers risk away from farmers, and therefore benefits financial institutions and the government of Bangladesh as well as the farmers themselves.
Bangladesh: Policy Options for Crop and Livestock and Aquaculture Insurance

(World Bank, Washington, DC, 2018-12-12) World Bank Group

Agriculture is a key sector in Bangladesh, but it is highly exposed to risks. While agriculture is a source of employment and livelihood for nearly one in two adults in Bangladesh and contributes about 16 percent to GDP, it is highly exposed to natural hazards. Indeed, Bangladesh is commonly ranked as one of the most vulnerable countries in the world to natural disasters with agriculture heavily exposed to floods, cyclones, and drought. In 2007, for instance, Cyclone Sidr destroyed 0.69 million hectares of cultivated crop lands and killed over 460,000 head of livestock and poultry. In the past, the government of Bangladesh and development partners have provided substantial support to farmers in the aftermath of large disasters, but this approach has disadvantages in that support is not guaranteed to farmers and may be slow. In the aftermath of Cyclone Sidr, recovery and reconstruction needs were estimated at USD 1.3 billion, or 28 percent of government expenditures. In spite of efforts by the government of Bangladesh, the gap between available funding and needs is often large and can reach more than USD 1.5 billion in bad years (Air Worldwide and ADPC 2014). Bangladesh often relies on international assistance, as over the past ten years, only 33 percent of disaster-related expenses has been met by domestic resources. In addition, disaster relief transfers often take substantial time to reach beneficiaries and require to divert resources away from long term development projects. If the Government of Bangladesh decided to go ahead with support for agriculture insurance, high-level buy-in from a broad range of stakeholders will be necessary, as will partnerships with the private sector. Government may consider: strengthening the overall legal, regulatory, and supervisory insurance environment; developing a centralized database of data for agricultural insurance purposes; provision of financial support to the program, particularly in the early stages of the program; and establishing a dedicated technical team within government with responsibility for implementation and for providing input to policy. One option for consideration would be for some or all of these activities to be carried out through a project with technical support and/or financial assistance of a development partner with adequate expertise in this field, such as the World Bank Group.
Bangladesh: Agriculture Insurance Situation Analysis

(World Bank, Washington, DC, 2018) World Bank Group

Agriculture is key in Bangladesh but highly exposed to risks.The Government provides significant support to agriculture, but currently provides limited support to the development of agriculture insurance.While the Government and external donors spend large amounts of money in the aftermath of disasters – average annual costs of disasters are USD 300 million - the funding gap is still high and can reach more than USD 1.5 billion in bad years.In spite of Government’s efforts, credit to agriculture is still constrained and represents 3 percent of total lending.If agriculture insurance programs were to be developed in Bangladesh, the overall legal, regulatory and supervisory insurance environment would require strengthening.Based on this preliminary assessment and discussions with key stakeholders, the WBG will prepare a technical report and policy briefing for Bangladesh Ministry of Finance’s Bank and Financial Institutions Division (BFID) on four potential types of agricultural insurance programs which have been identified through this situational analysis as priority solutions for further investigation. The four priority areas identified for further investigation are: (1) Livestock insurance for commercial dairy farmers and poultry farmers; (2) Insurance cover for shrimp producers and artisanal fishermen; (3) Crop insurance linked to credit for small and marginal cereal farmers; and (4) Fully subsidized flood-index insurance for the most vulnerable rural households. The diagnostic reports will also analyze potential institutional frameworks that could be considered for agricultural insurance in Bangladesh, paying specific attention to the potential roles for the Government and insurers.
Bangladesh: Policy Options for Agriculture Insurance

(World Bank, Washington, DC, 2018) World Bank Group

Agriculture is a key sector in Bangladesh, but it is highly exposed to risks. While agriculture is a source of employment and livelihood for nearly one in two adults in Bangladesh and contributes about 16 percent to gross domestic product (GDP), it is highly exposed to natural hazards. In the past, the government of Bangladesh and development partners have provided substantial support to farmers in the aftermath of large disasters, but this approach has disadvantages in that support is not guaranteed to farmers and may be slow. Agricultural insurance offers the government a planned, fast, ex ante alternative to ad hoc disaster response, one that: (1) reduces the ex post fiscal burden on the government, (2) improves farmers’ resilience to shocks, and (3) supports the expansion of agricultural credit. International experience shows that government can play a variety of roles to support the responsible scale-up of agriculture insurance. The ministry of livestock and fisheries, and other key public and private sector stakeholders, the World Bank Group team has identified four potential types of agricultural insurance to offer in Bangladesh, all of which will require implementation through a partnership between the public and private sectors. The four types are dairy cattle insurance, aquaculture insurance, crop insurance, and fully subsidized agricultural insurance for the most vulnerable.
Dynamics of Rural Growth in Bangladesh: Sustaining Poverty Reduction

(World Bank, Washington, DC, 2016-05-17) World Bank Group

The rural economy in Bangladesh has been a powerful source of economic growth and has substantially reduced poverty, especially since 2000, but the remarkable transformation and unprecedented dynamism in rural Bangladesh are an underexplored, underappreciated, and largely untold story. The analysis identifies the key changes occurring in the rural economy, the principal drivers of rural incomes, the implications for policy, and related actions to foster future growth, further reduce poverty, and improve food security and nutrition. A substantial strength of this study is its empirical foundation, consisting of three sets of detailed data on rural households. Two of the datasets are unique in tracking the same set of households for more than two decades. These data make it possible to examine how change is occurring within and among rural households; they shed considerable light on trends that tend to be obscured at more aggregate levels of analysis. Nationally representative surveys and aggregate secondary data provide complementary and contextually rich insights into the household data.
Food Price Increases in South Asia : National Responses and Regional Dimensions

(World Bank, 2010-06-01) World Bank

Food price inflation not only threatens macroeconomic stability but also decreases the welfare levels of most households, especially the poorer ones, for whom food consumption constitutes a relatively large share of total expenditures. This report analyzes the causes and effects of food price inflation in South Asia during the period 2007?08 and beyond; simulates the impact of food price increases on household welfare and the potential of adjustments in consumer and producer behavior for mitigating the negative impact on welfare; and assesses the potential impact of regional trade liberalization on food prices. The appendixes describe the policy reactions of individual governments to the increases in food prices against the background of their respective domestic food policies. The focus is on wheat and rice, which are the main food staples in South Asia and together account for an important part of food expenditures of the poor. By analyzing the household?level impacts of the food crisis and taking stock of the policy responses of national governments, including their regional dimensions, the report allows lessons to be drawn regarding the policies that South Asian governments may want to follow to enable them to react appropriately in case another food crisis unfolds, while at the same time helping to prevent such a crisis from occurring.
Mission Note Bangladesh, March 15-31, 2009

(Washington, DC, 2009-03) World Bank

The Government of Bangladesh has requested the World Bank to provide further assistance to the livestock and dairy sectors. During a mission of the Sector Manager of Agriculture and Rural Development (ARD) of the South Asia region of the World Bank to Bangladesh in November 2008, the Secretary of the Ministry of Livestock and Fisheries (MOFL) of the former Caretaker Government of Bangladesh (BD) requested the Sector Manager for assistance to the development of the dairy and fisheries subsectors to support the livelihoods of the rural people and contribute to the economic growth of the country. The secretary of the MOFL also reminded the Bank of its proposal for an investment request for dairy development to the Bank sent in 2007. In response, the Bank agreed to carry out a technical mission to review the current state of the livestock sector (with special focus on the dairy sub-sector) and the fisheries sector, particularly inland fishery production (including freshwater capture and freshwater aquaculture). The mission reviewed policy, technical and administrative aspects in order to identify key bottlenecks and assess the scope for Bank-supported further development of the sectors. This request of the Government is consistent with the emphasis in the Poverty Reduction Strategy Plan (PRSP) on further development of the livestock and fisheries sectors which together account for 7 percent of total Gross Domestic Product, or GDP (3 percent livestock, 4 percent fisheries) and 33 percent of agricultural GDP).
Agriculture in Bangladesh : A Note on Food Security by Enhancing Productivity

(Washington, DC, 2009-01) World Bank

Awami League's Election Manifesto 2008 appropriately recognizes the importance of ensuring food security for all in Bangladesh. Food Security requires increasing agricultural growth which in turn is a key factor in reducing poverty in the country. Food security also requires increasing agricultural production and protecting consumers. Sustained production increases, in turn, require technology-driven increases in the productivity of crops (rice in particular), fisheries and livestock. This is possible through interventions that improve: (i) agricultural research and extension systems to generate and disseminate high yielding varieties and location-specific solutions to production constraints; (ii) timely access to quality production inputs, especially seeds and fertilizer; (iii) coverage, targeting, and administration of production subsidies (especially fertilizer) in order to make them efficient and fiscally sustainable; and (iv) irrigation and drainage. Increasing the incomes of small and marginal farmers requires promotion of commercial agriculture and agri-business opportunities through: (a) value chain development and value-addition to selected agricultural commodities; (b) improvements in market infrastructure; (c) supporting the development of farmer groups and producer organizations and link them with value chains and markets; and (d) facilitating private sector investment in agri-business development, demand-driven research and extension systems, and rural finance through public-private partnerships. Food safety nets are needed to protect poor and vulnerable consumers but their coverage, targeting, and administration need to be improved. All these interventions will require a right blend of public policies, resources, and participation of public and private sector, and increased technical and administrative capacity of the institutions responsible for agriculture extension, research, food procurement, water management, and safety net management.