ACT 201

Semester Spring 2020

Assignment

Submitted to

Department of Accounting and Finance

Word Count: 1106

Submitted by
In this Pandemic Covid-19 Bangladesh already faces a lot of economic crisis and challenges. For
this Economic slow performance it has created a drastic impact on people life and also impact on
the overall people lifestyle and Income sources also. During the hard lockdown time a major
economic performance slow down and impact all over the industry including food and
agriculture sector. One of the global challenge from the very beginning that words has to face is
to ensure food security in the way of agricultural production. Also many country set up new
technology to faces the challenge properly. But due to the impact of Covid-19 it has created a
drastic impact on food and agriculture sector. The purpose of this assignment is to examine the
overall impact on Agriculture sector and
Accounting problems facing the Bangladesh Food and Allied market.

But there is a hope that Agriculture is one of the strong way to overcome the recent challenges
during this Covid-19 period. World Bank recent report tell that Bangladesh has tremendous
potential to increase overall income from all the farm, also increase agricultural efficient and
boost crop nutrition value. In rural area almost 87% population rely on the agricultural income.
Some of the potential source that need to be address to boost economic performance. [ CITATION
AKM20 \l 1033 ]

In the ranked of producing Rice Bangladesh has considered as the third place in the world. So it
is a very important sector to huge support to improve economic growth. By meeting the demand
of local people we can export to gain foreign income. This will support the economy. This
foreign money then reinvested to create new job opportunity. So we can still take advantage and
support our overall economy. [ CITATION Rap20 \l 1033 ]

Farming organic vegetables that is actually seen in the Covid-19 situation in a new way and it is
one the most positive sector that can help to fight in the challenge of Covid-19. Producing
organic vegetables which is very much environment friendly, support to meet the economic
need, as well as bring money also create job opportunity for the recent jobless people too.
Government need to focus on this growing upcoming sector.

One of the major sector to capitalize and support this economy is Fisheries. We can export them
easily and support the money market. Though this pandemic situation and during lockdown
major import export stopped. But it is running again and According to the data Bangladesh
exports fishes almost 50 countries. We actually established this market in the very beginning so

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in this pandemic what we can do to focus on more in this sector and try to more export to resolve
our economic crises. This can be one of the potential site that can help in this pandemic sector.

In this section we are discussed about overall impact on Agriculture sector and Accounting
problems facing the Bangladesh Food and Allied market.

In Accounting depending on the price, sales revenue, gross revenue and overall profit are highly
connected. Due to the situation of lockdown most of the transportation are not delivery result as
a result there is a shortage of food product and recently the price of every necessary food items
are sold at a higher price. This situation hit the market as the market price is increased so it is a
fact that most of the business Net income should be fall down. As net income is go down so it
will also impact on the cash and cash Equivalents. Government also receive less amount of Tax
for this issue.

The most popular capital market DSE and CSE their trading are also slow down their
performance. As a result the food related industry who actually trading on this capital so they
are also enable to gain share capital from this large market. Also the traders who are actually
invested in this market they are maybe unable to gain dividend properly due to economic
recession. Also Net Assets Value (NAV) for this industry also go down.

As transportation are slow down, Prices are increases of food items and People income are also
decreased so it will also impact on Salaries and wages of workers and farmers. In many Rice
Production or other food industry company they are unable to provided employee salaries and
wages properly.

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Due to Economic slowdown maybe food are supply within limit but most of the people loss their
income and many people are jobless and it will also impact on the buying power. As people are
buy only necessary items and restaurant are also shut down so there are ultimately less sales
occurs. As sales are generating less so government also get less amount of value added tax
(VAT) from the normal situation.

To survive in this pandemic situation Bangladesh government announces so far $11.90b

packages to support different industry including agriculture sector. From all the packages the
maximum amount 300 billion assigned for proving working capital facility among the service
and affected industry. Since the outbreak of corona virus Government assigned agriculture
subsidy with Taka 95.00 billion, mechanisation of agriculture works with Taka 2.00 billion.
Farmers can also take loan only for 4 percent interest rate. Bangladesh Bank already reduce the
interest rate for the local SME sector. Also different International agency provide short term
fund with zero interest rate so that the food industry can provide their salary and run the
employee without difficulty. [ CITATION COV20 \l 1033 ]

In every business banking transaction and activity are highly related. As most of the bank faces
liquidity problem, salary of every employee goes down, most of the bank shut down their
branches it indicates that bank does not have enough cash to run the operation. In this case,
different food Industry Company or the restaurant business owner they are not enable to taking
any type of long term loan.

Government should more focus on this sector because it is one of the strongest sector that can
help us to support in this pandemic situation hugely. The government also declared already to
cultivate every single pieces of land. Government also included farmers as their incentive plans.
We must to consider this sector very carefully. Government should also ensure that the low
income poor farmers who support a lot in this agriculture industry they are easily taking short
term loan with minimum interest rate. Even if a smoothest supply chain should be establish so
that all the government help directly receive by the farmers, all aspect involved in this sector and

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at the end ultimate consumer benefit to ensure their food safety should be address. So we should
importance this sector properly and it will help us to fight with economic downward.

Reference
COVID-19: Govt so far announces $11.90b stimulus packages. ( 2020). thefinancialexpress.

Patwary, A. A. (2020, April 24). Covid 19 Implication: Economic challenges of Bangladesh and way
forward. Retrieved from textilefocus: http://textilefocus.com/covid-19-implication-economic-
challenges-bangladesh-way-forward/

(2020). Rapid assessment of food and nutrition security in the context of. Food and agriculture
organization of the US.