Repurposing Agricultural Public Spending for Quality Growth and Jobs in Bangladesh’s Agrifood System

Overview & Synopsis

Agriculture remains a foundation of Bangladesh’s economy, rural livelihoods, and job creation. It employs nearly half of all workers, contributes over one‑tenth of gross domestic product (GDP), and is vital for food security, poverty reduction, and women’s employment. It can do more to create better jobs, raise incomes, and drive rural transformation through diversification and stronger links to processing, services, and markets. Yet the sector is at a turning point: growth has slowed, productivity gains have stalled, and diversification remains limited. Climate risks, shifting diets, and tighter budgets expose weaknesses in current policies and spending patterns, with much public spending still centered on rice production and subsidies that no longer fully meet the needs. This study examines how Bangladesh allocates and uses public resources in agriculture. It reviews overall agricultural spending and takes a close look at the fertilizer subsidy program, the largest support scheme in the sector. The aim is to assess whether current spending delivers the best results for farmers and the economy, while also identifying how scarce public resources can be used more effectively to support a more productive, diversified, competitive, and job-rich agrifood system.