Finance Adviser Mirza Azizul Islam also proposed distribution of Tk 6,351 crore as agriculture credit and Tk 100 crore to the Fund for Disaster Affected Small Farmers.

In his budget speech, the finance adviser said, "Farmers using electricity-powered pumps receive 20 percent subsidy against electricity bills, but no subsidy is given for diesel-run irrigation equipment.

"The government is committed to subsidise the extra cost farmers will have to bear because of diesel price hike."

Of 48 lakh hectares of land under irrigation, about 33 lakh hectares are irrigated with diesel-run pumps during the boro season, which increases the production cost of paddy by 50 paisa per kilogram, he said.

Terming the agriculture credit an "input" to the rural socio-economic development, the finance adviser said the government has set a target to distribute Tk 6,351 crore as agriculture credit through Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, four nationalised commercial banks, Bangladesh Rural Development Board, and Bangladesh Cooperative Bank.

"Investment in agriculture plays a direct role in poverty reduction...and as administered interest rate of agriculture credit is low, this itself works as a financial safety net," he observed.

On livestock and fisheries, he said the government remains focused on prevention of jatka (hilsha fry) fishing and on quality control of fish and fishery-products.

Referring to the recent emergency measures taken to tackle the situation arising from the attack of avian influenza virus, Mirza Azizul Islam proposed allocating Tk 100 crore to the Fund for Disaster Affected Small Farmers.

The target for credit disbursement in the last budget was Tk 6,000 crore and allocation for the "fund for assistance to small farmers affected by natural disaster" was Tk 50 crore.

The proposed budget also has an allocation of Tk 350 crore for agricultural research. The amount is Tk 110 crore higher than the allocation in the last budget.