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[🇧🇩] Agro Processing Potential for Bangladesh
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Saif

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Bangladesh missing out on multibillion-dollar agro-processing potential

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Experts attend a roundtable titled “Export readiness of agro-processing SMEs through skills development” at The Daily Star Centre in Dhaka yesterday. The event was jointly organised by The Daily Star and Swisscontact. Photo: Prabir Das

Despite their multibillion-dollar export potential, Bangladesh's agro-based products are yet to account for a substantial portion of the global market due to systemic challenges in compliance, quality control, and value addition, according to experts and industry leaders.

They emphasised the need for policy reform, targeted training, and stronger institutional support to address the challenges—ranging from certification gaps to limited testing infrastructure—to enable small and medium enterprises (SMEs) to thrive in international markets.

They were addressing a roundtable titled "Export readiness of agro-processing SMEs through skills development" at The Daily Star Centre yesterday.

The event was jointly organised by The Daily Star and Swisscontact under a BYETS project, with support from the Embassy of the Netherlands in Dhaka.

Bangladesh's agricultural exports could triple from the current $1 billion within the next three years—provided the government introduces adequate policy support, said Md Abul Hashem, president of the Bangladesh Agro-Processors' Association (Bapa).

Hashem identified several critical challenges, including the absence of internationally recognised testing facilities.

"The Bangladesh Standards and Testing Institution (BSTI) certifications are not globally accepted, limiting our export reach," he said.

He also pointed to a severe shortage of technical experts and farmers' limited skills in fertiliser application, which impacts product quality.

Hashem said while Bapa has trained 1,200 workers in large industries, SMEs—which form the backbone of agro-processing—often lack the capacity to comply with international standards.

This is now where the focus is shifting, said Nadia Afrin Shams, team leader at Swisscontact Bangladesh.

"Last month's international mango expo started this conversation. Today's roundtable builds on that momentum," she said, adding that Swisscontact aims to co-develop inclusive skills-based solutions with SME stakeholders.

The discussion also revealed how firms are working to overcome export compliance challenges.

Mahbub Baset, chief operating officer of consumer food manufacturer IFAD Multi Products Ltd, shared how regulatory setbacks in the US market—stemming from the use of banned additives—led his company to adopt natural alternatives.

"These experiences have helped us strengthen internal controls. Now, with Swiss-funded support, we provide GMP (good manufacturing practices) and food safety training to new recruits," he said.

He also said exporters continue to face logistical bottlenecks due to the lack of credible labs at the local level.

KH Nurul Momen Kayes, proprietor of agricultural food exporter Trust and Trade, ships sesame oil to 12 countries but often depends on foreign labs like Eurofins Scientific for quality testing, which delays shipments.

"We need investment in domestic testing infrastructure to improve efficiency and global competitiveness," he urged.

Helal Hussain, country director of Swisscontact Bangladesh, noted that while agro-exports amount to around $1.2 billion annually, volumes remain low due to poor compliance with global standards.

"Only a small portion of our tea is certified for key markets," he said.

To address this, Swisscontact has launched a project targeting 20 agro products across seven export markets, focusing on improving processing, traceability, packaging, and market knowledge.

"Sustained collaboration is essential to unlock this sector's potential," he added.

Tanzila Tajreen, senior policy advisor at the Netherlands embassy, emphasised the need for targeted skills development through projects like BYETS (Building Youth Employability Through Skills).

"Agriculture has always been a cornerstone of our economy, yet agro-processing still lacks an export-oriented strategy," she said.

She stressed that skilling youth and women for decent employment in agro-processing can also diversify Bangladesh's export base beyond readymade garments.

Ikramul H Sohel, senior programme officer at the Embassy of Sweden, echoed the sentiment.

"Agriculture holds export potential similar to RMG—if we get the policies right," he said.

With the right policies on food safety, labour standards, certification, and financing, agriculture can be transformed into Bangladesh's next major export engine, he added.

The event was moderated by Ananya Raihan, chairperson, iSocial Limited.

Shamsul Huda Asif, admin and coordinator manager, European Union Chamber of Commerce in Bangladesh; Palash Kanti Das, senior adviser, Climate Action Network South Asia; Mohammod Mosharrof Hossain, chief executive officer, Agro Food Industry Skills Council; and Saif Mohammad Moinul Islam, senior programme officer, International Labour Organization, also spoke at the event.​
 

Need for a unified agro-processing regulatory body

Published :
Nov 14, 2025 00:11
Updated :

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That Bangladesh's agro-processing industry remains mired in layers of regulatory hurdles is no secret. The sector, despite its immense potential to drive export growth, rural employment, and value addition to agricultural produce, continues to struggle with a host of compliance challenges. Exporters must navigate a maze of stringent and often inconsistent standards that vary not only across products but also from one destination market to another. Yet, as a recent FE report reveals, the challenges at home-those involving domestic regulatory compliance-are no less daunting.

At a press meet earlier this week, industry leaders voiced strong frustration over what they described as a "web of regulatory tangles," high testing costs, and poor coordination among government agencies. They argued that the cumbersome procedures and overlapping jurisdictions have slowed the sector's progress and deterred potential investors. At the core of the problem lies the need to deal with multiple regulatory bodies-each with its own mandates, paperwork, and approval requirements. The Bangladesh Standards and Testing Institution (BSTI), the Directorate of National Consumer Rights Protection, the Bangladesh Competition Commission and the Bangladesh Food Safety Authority are all involved with regulation of various aspects of the industry. However, the coordination among them remains weak, resulting in duplication of work, contradictory instructions and unnecessary delays. Industry insiders contend that such inefficiency not only inflates production costs but also undermines competitiveness in both domestic and international markets.

Among the regulators, BSTI has come under particular criticism. As the country's sole standards authority, it plays a vital role in certifying quality and ensuring product compliance. Yet, businesses complain that its inspection and certification charges are excessively high and that separate approvals are required for products differing only in weight or packaging. Such bureaucratic rigidity has made BSTI certification prohibitively expensive, especially for small and medium enterprises. While BSTI conducts about 160 laboratory tests, many exporters still have to send samples abroad for specialised analyses, leading to additional costs and delays. Industry stakeholders have, therefore, urged the government to consider the establishment of a unified, modern regulatory authority-one that could integrate testing, certification and food safety oversight under a single umbrella, akin to the U.S. Food and Drug Administration (FDA). Such consolidation, they argue, would minimise duplication, enhance efficiency and ensure greater accountability.

Testing and certification are indeed indispensable for the credibility of Bangladesh's agro-exports, particularly in markets with stringent food safety and quality standards. But without an enabling domestic regulatory environment, the sector's potential cannot be fully realised. The government's role, therefore, should not be limited to regulation alone--- it must also facilitate compliance through streamlined procedures, cost-effective testing and robust institutional coordination. If the long-standing bottlenecks are addressed with sincerity, Bangladesh's agro-processing industry could emerge as a major front of export diversification. Easing regulatory burdens is thus not merely a matter of convenience but also a prerequisite for unlocking one of the country's most promising engines of sustainable growth.​
 
Why agro-processing remains timid

FE
Published :
Dec 29, 2025 23:20
Updated :
Dec 29, 2025 23:20

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If agro-processing is value-addition to farm outputs such as crops, livestock, fish, timber etc., Bangladesh has a long way to go before it economically transforms the raw versions of produce into products. The country has to its credit surplus production of certain vegetables and fruits but most varieties of those produce fall short of standard specification for industrial processing. Naturally, the surplus perishable vegetables and fruits are used as animal feed or thrown out to rot. Managements of different agro-processing companies cite, according to a report carried in the FE on Sunday last, the reasons why local farm produce cannot be used for processing in their factories. Locally produced crops are undersized with high moisture contents, less fleshy yield and excessive seeds. Even the cashew nuts introduced lately do not meet the factory specification. Another exotic crop is coffee bean now being cultivated under a promotional initiative. How it will fare in meeting the specification is yet to be reported.

In a country like Bangladesh with an oversize population, the research priority is to focus on domestic mass consumption, according to a prominent agricultural scientist. This contention is indisputable but then the same concept demands a review when some of the produce such as tomato and pineapples get wasted. If those met the required specifications of industries and factories, the processing of the excessive yield could have led to economies of scale. On the one hand, cost of production increases and on the other, the surplus outputs are left to rot. So cultivation of the improved varieties is an imperative.

In this context, breeder and chief scientific officer at the Bangladesh Agricultural Research Institute (BARI) Dr. Md Selim Uddin's claim that the institute has developed some of the produce fit for processing at the companies' plants. But there is a gap between innovation and farmers' practices. In this case, the Department of Agricultural Extension (DAE) should play the role of both a guide and a mentor. The DAE perhaps is least bothered with the mismatch between farm practices and use of outputs for industrial purposes. They are likely to be satisfied with meeting the criterion of mass consumption at home. Now, the need is to adopt improved seeds of tomato and other crops in order to make the yields ready for industrial use. At least, it has to be ensured that the excess outputs are not wasted but used for processing. Not all vegetables and fruits are produced in excess but the select ones that are grown with a big surplus margin should be selected for matching those with industrial needs.

Potato, for example, can be used for chips and other crisp items. This year farmers have to count losses and its fresh crop is now selling at prices leaving hardly any profit margin. It is exactly in such matters, agriculture extension officers can encourage farmers to adopt quality seeds so that the stem tuber crop meets the phytosanitary standard for export as well as production of chips and other processed foods. Similarly, other crops can be improved. In fact, improved cashew nut seeds imported from Cambodia have already been planted. Within five years yield is expected. The BARI has also developed a variety fit for commercial processing. Had all such initiatives been taken earlier, agro-processing by now have gained momentum. Late comers into the export market face tough challenges.​
 

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