COVID-19 had an impact across all economic sector including the agriculture sector. Because of the lockdown, farmers were simultaneously facing lower demand for their produce, higher cost of transportation and inputs including labour. To understand the impact of COVID-19 on the farmers, BIGD conducted this study in June 2020. The study estimates that COVID-19 caused a seven per cent loss from the expected yield of Boro rice production in 2020, which amounts to a national loss of BDT 3,687 crore. Because of the high costs of inputs, lower production and demand, Boro farmers lost an estimated 40 per cent of their expected profit in 2020.
Researchers: Dr Narayan C Das; Semab Rahman; Md. Saiful Islam
Timeline: May 2020–June 2020
Status: Completed
Contact: Md. Saiful Islam
saiful.rpg@bracu.ac.bd
Publications
Presentation slides: The Impact of COVID-19 on Boro Rice Farmers
Context
Lockdown strategies entail a number of protective measures to flatten the curve against COVID-19 infection, which include border closures, travel restrictions, restaurant closures, and trade disruptions. Consequently, this is leaving a significant impact on the agriculture sector, which is already reeling from the deep cut in the price of products because of low demand and a simultaneous increase in the cost of transporting the produce. Historically, quarantines and panic lead to a spike in hunger and malnutrition, as evidenced during the Ebola Virus outbreak in Sierra Leone in 2014.
An article in the Financial Express discusses how blockages to transport routes, transport restrictions and quarantine measures, shortages of labour, and spikes in product’s prices are obstructive for fresh food supply chains and might also result in increased levels of food loss and waste. These would consequently reduce the productive capacities of farmers, hindering them from selling their produce. The COVID-19 crisis will also reduce food demand as a result of declining incomes and lower frequency of visiting markets due to social distancing measures. The negative impact is already visible – the Daily Star reports that in Rangamati, despite bumper production of fruits, growers are incurring losses as the price has fallen drastically in the local markets of the district due to the outbreak.
The Bangladesh government has emphasized the importance of the agriculture sector during these times of crisis, with Prime Minister Sheikh Hasina directing the Ministry of Agriculture to facilitate farmers and to provide them with all necessary materials to ensure that agricultural production does not suffer.
Research Question
The objective of this research was to understand the extent and nature of the negative impact of COVID-19 on the farmers and suggest possible policy recommendations for safeguarding the sector, which is a crucial sector for our food security, employment generation, and poverty reduction
Methodology
We conducted a quantitative phone interview with randomly selected 2,834 farmers across all divisions of Bangladesh.
Findings
Because of the pandemic, Boro farmers lost seven per cent of their estimated yield in 2020, which nationally amounts to 4.82 crore maunds, equivalent to BDT 3,687 crore. Because of the labour shortage, labour wage went up by 17 per cent. The cost of other inputs also increased because of disrupted transportation. As a result, the Boro farmers faced a 40 per cent loss in expected profit.
