Incentivising rice farmers of Bangladesh

Increasing production costs of food grains has had a negative consequence of rising commodity prices around the world on Bangladesh's agriculture. To the dismay of farmers, a 23% increase in the price of fuel has resulted in a 15 to 18% increase in the cost of various agricultural inputs such as fertilizer, irrigation, and transportation. Obviously, such an increase in input costs will raise the price of food grains, particularly rice. The boro rice farmers, who were so optimistic about their approaching harvest—which was set to begin in a week or two in the haors, beels, and other lowland areas, and elsewhere in the country in May—are now extremely concerned. The reason for this is that, according to estimates, the entire production cost of a kilogram (kg) of boro paddy will be more than USD 0.32, although the government's purchase price for rice from farmers remains at USD 0.31 per kg. Farmers will be discouraged unless the government lowers the procurement price for rice and paddy for this year.
However, this increase in production costs may have an impact on the current market price of rice, which, while constant at the present, is still on the high side. As a result, the government would have to carefully manage the situation in order to keep rice prices stable in the market while also ensuring that farmers receive a fair reward for their hard work. The position is really precarious. For the first time, farmers backed by the Department of Agricultural Extension (DAE) have brought the most land under boro cultivation in terms of acreage.