World Bank: Bangladesh Must Pivot Farm Spending to Spur Growth

The current support structure favors traditional crop production, primarily rice, which occupies 72 percent of cultivated land. While these subsidies stabilize prices, they create a significant wealth gap: the top 20 percent of landholders capture half of all fertilizer benefits, leaving the poorest 40 percent with just 15 percent of the total support. Furthermore, the reliance on fertilizer has not translated into efficiency, as only five percent of farmers apply nutrients in the balanced proportions necessary to maximize yields.

To modernize, the World Bank proposes a phased transition. Immediate reforms involve scaling up digital tools like e-vouchers and the Farmer's Card to ensure aid reaches vulnerable populations. By redirecting funds away from blanket subsidies and into research, irrigation, and climate-resilient infrastructure, Bangladesh could unlock growth in livestock, fisheries, and agro-processing. This shift would allow the sector to meet changing consumer demand for protein and processed foods while mitigating the economic pressures caused by climate change and international supply disruptions.