Fears BIDS study on direct cash subsidy for diesel
Star Business Report
The direct cash subsidy programme for diesel in the last Boro season suffered various setbacks with around Tk 50 crore feared to have gone to ineligible farmers due to irregularities in the listing and disbursement process, a study said yesterday.
The money that is feared to have gone to the inappropriate hands is one-fifth of the total cash subsidy for diesel at Tk 250 crore, sanctioned for the marginal and poor farmers to help them bear the pressure of increased diesel price, said the study conducted by Bangladesh Institute of Development Studies (BIDS).
“About one third of eligible farmers were not listed and thus were deprived of the subsidy while ineligible ones received subsidy,” said BIDS Research Director M Asaduzzaman, referring to the preliminary findings of a study on diesel subsidy for poor farmers.
The disclosure of the findings came at a workshop on the experience of distribution of cash subsidy for diesel for irrigation during the last Boro season.
Agriculture Minister Matia Chowdhury, World Bank Country Director for Bangladesh Xian Zhu, agricultural experts and economists also spoke at the programme chaired by BIDS Director General Quazi Shahabuddin.
The BIDS study, carried out among farmers in 64 villages of 16 districts, observed that majority of the farmers eligible for the subsidy under the set criteria received less than the amount they should have received.
Supported by the World Bank under a DFID Trust Fund, BIDS undertook the study on adequacy and effectiveness of diesel subsidy last year after the then caretaker government for the first time announced a direct cash subsidy for small farmers to help them bear a portion of their irrigation cost during the Boro season in 2008.
Under the criteria, farmers who had not more than 2.5 acres of cultivable land and those who cultivated not more than 2.5 acres either of their own or by barga (tenancy) were termed eligible for subsidy.
The government sanctioned Tk 545 as direct subsidy for per acre land for irrigation.
Experts said around 12 lakh tonnes of diesel are used for irrigation during Boro season with small and marginal farmers paying around 20 percent more than the amount the large farmers pay for irrigation.
The caretaker administration, which initially allocated Tk 750 crore for cash subsidy in fiscal year 2007-08, actually disbursed Tk 250 crore among 65.93 lakh farmers last year.
During the current fiscal year, Tk 540 crore has been allocated for cash subsidy.
Asaduzzaman, referring to the listing process, said government officials, Union Parishad representatives and pump owners were involved in the listing of farmers eligible for the subsidy.
The BIDS research director, citing the survey, said 13 percent were ineligible among those who received the subsidy. “Payments of around Tk 50 crore may have been irregular,” he said, adding that subsidy might be given to marginal and small farmers by lowering the threshold requirement from 2.5 acres as it will benefit the poor ones.
The study also suggested paying subsidy through banks instead of other systems.
“It’s a good idea. We will consider providing subsidy through banks in future,” said Matia Chowdhury.
She blamed the irregularities on the previous government and said those who were responsible for distribution could do anything they wanted as there was ‘no scope to protest irregularities’.
On the diesel price cut, Matia said the government will reduce the price further if it is possible in future.
About fertiliser distribution issue, she said the government will go tough if the behaviour of dealers is found erratic.
Courtesy: thedailystar.net
