Smarter farm spending can boost jobs, growth: World Bank

Bangladesh can create more jobs, improve farm productivity and strengthen climate resilience by shifting agricultural spending towards higher-impact investments, according to a new report by the World Bank.

The report, Repurposing Agricultural Public Spending for Quality Growth and Jobs in Bangladesh’s Agrifood System, says Bangladesh allocates around 10% of total public expenditure to agriculture, but growth in the sector has slowed and diversification into higher-value products remains limited.

It notes that a large share of agricultural spending is directed towards fertiliser subsidies and rice production, while critical areas such as agricultural research, extension services, irrigation, market access and climate resilience receive comparatively less funding.

According to the report, fertiliser subsidies account for about 80% of the Ministry of Agriculture’s budget. However, the benefits are unevenly distributed, with the largest landowners receiving a disproportionately high share of support.

The World Bank said public spending remains heavily focused on rice, which occupies around 72% of cultivated land and receives about 80% of subsidy benefits, despite stronger income and employment opportunities in livestock, fisheries, vegetables and agro-processing.

Jean Pesme, World Bank Division Director for Bangladesh and Bhutan, said climate risks, changing food demand and rising global supply disruptions are exposing weaknesses in current agricultural policies and spending patterns.

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The report recommends expanding soil testing, strengthening farmer advisory services and accelerating the rollout of Farmer’s Cards and e-vouchers to improve support delivery, particularly for poorer and climate-vulnerable farmers.

It also suggests gradually redirecting resources towards investments that increase productivity, promote higher-value agriculture and generate better-paid jobs across the agrifood sector.

Mansur Ahmed, Senior Economist at the World Bank and co-author of the report, said modernising fertiliser subsidy delivery could improve productivity, enhance soil health and ensure support reaches farmers who need it most.