Agro Sector Rough 1

The abundance of natural resources available in Bangladesh supports a range of highly profitable
investment opportunities in agribusiness. Over 90 varieties of vegetable are grown in

Bangladesh, yet in this fertile land there is underutilization of the country’s agricultural capacity.
This presents many opportunities for investors seeking to export agricultural products, or to meet
the rapidly growing local demand.
Sector Highlights:
Thriving in this sector are canned juices, fruits, vegetables, dairy and poultry. The country offers:
1. Huge supply of raw materials exist for the agribusiness industry.
2. A tropical climate for all year growing, a lot of fresh water, indeed a land interspersed
with numerous rivers, available land with fertile soil.
3. Government and NGOs conduct regular training programs to develop skilled manpower
in the industry.
4. Wide range of biodiversity exists for different crops.
5. Agricultural commodities have a comparatively higher value added than non-agricultural
commodities.
Investment Opportunities:
There is a wide variety of investment opportunities including:
1. Cold storage facilities serving the supply chain, especially fresh produce for export.
2. Fresh produce production for local and export markets.
3. Production of fertilizers and cultivation of seeds.
4. Eco-friendly jute production, supported by jute technology development institutes.
5. Shrimp farming.
6. Fish processing (Dried Fish Production)
7. Halal foods.
8. Milk and dairy products.
9. High value-added foods for export, including herbs, spices, nuts and pulses.
Industry Outlook:
Bangladesh has the essential attributes for successful agro-based industries namely rich alluvial
soil, a year-round frost-free environment, available water and an abundance of cheap labor.
Increased cultivation of vegetables, spices and tropical fruits now grown in Bangladesh could
supply raw materials to local agribusiness industries for both domestic and export markets.
Progressive agricultural practices, improved marketing techniques and modern processing
facilities have raised the quality of agribusiness and expanded production levels significantly.
Industry Incentives:
The government encourages development of the agricultural sector through measures to increase
crop sector productivity and production of non-crop agriculture. To achieve this it provides
increased credit, and facilitates greater access to inputs and modern technology. Investments in
agribusiness industries in Bangladesh are encouraged with the following support measures:
1. The Equity Entrepreneurship Fund for development of agribusiness industry.
2. Special loan facilities available to set up an agribusiness.
3. Agribusiness industry enjoys tax holidays.
4. Any investment in this sector will enjoy similar tax amnesty as available in other sectors.
5. Imposition of supplementary duty on mango, orange, grape, apples, dates and others to
utilize the high quality and cheaper local resources.
6. Cash incentives to the exporter’s ranges from 15% to 20% in various sub sectors.
COVID-19 Challenges in Supply Chain in Agribusiness:

1. Sharp decline in food procurement and closure of markets
2. Reduced availability of and access to essential food items
3. Difficulty for households to sell their agricultural produce, limited or no income
generation
4. Increase in food prices and adopting negative coping mechanisms
5. Local businesses that rely heavily on exports (fish/ and supply chains that depend on
import (oil, sugar, etc are already severely affected
6. Small scale farmers are facing difficulties working on their land/accessing markets to sell
their products or buy seeds and other essential inputs
7. Less food production of high value commodities (fruits and vegetables) due to lockdowns
and disruption in the value chain including poultry and dairy
8. Blockages to transport routes are particularly obstructive for fresh food supply chains and
may also result in increased levels of food loss and waste
9. Negative impact on livestock poultry sector due to reduced access to animal feed,
vaccination and huge gap between farm gate price and retail price
10. protectionist policies and shortage of workers has already created problems in the
agricultural sector.
11. bottlenecks in Frozen Fish sectors- lack of skilled labor, dominant position of traders,
lack of cold storage facilities, low quality fish
12. limits the processing capacity of exporters
Things to Do for Minimizing COVID-19 Effect on Agriculture

First, health is the top priority. Bangladesh must ramp-up testing as much as possible and put
isolation measures in place in order to slow the spread. Second, Bangladesh should meet the
needs of the most vulnerable people, as the measures to contain the pandemic cripple the
economy. Third, Bangladesh must keep the food supply flowing by prioritizing the health of the
workers in the sector and their outputs. The following are specific recommendations.
1. Expand and improve emergency food assistance and social protection programs
2. E-commerce platforms should facilitate the trading of accumulated produce to help boost
sales. E-commerce companies should set up a special fund to help farmers find markets
for unsold agricultural products and build a channel dedicated to fresh agricultural
products.
3. Government should give low interest rate loans and rent reductions to firms to develop
high-tech agriculture technologies to reduce human contact while keeping the supply
chains moving.
4. Address trade and tax policies to keep the global trade open
5. Manage the macroeconomic ramifications
6. Food supply should be ensured to the Agricultural labourers and other low-income
peoples during the lockdown period for COVID-19.
7. Government may arrange a proper transporting system to transport agricultural input
from input manufacturing and distribution centres to the farmers’ accessing unit through
private companies and public and private service providers.
8. Government may arrange a proper transporting system to transport farmers’ products like
food grain, vegetables, fruits, milk, meat, eggs from the farm gate or local market to big
cities through public and private service providers and designated middlemen.
####Three strategies that can contribute to an increased value of shrimp products have been
highlighted:
(1) increasing the share of value-added products in the export basket,
(2) improving the image of Bangladeshi shrimp abroad and
(3) investing in food safety and sustainable certification initiatives.
#####There are three strategies suggested to deal with the lack of supply:
(1) increase the productivity of fish farms,
(2) reduce post-harvest losses and
(3) encourage exporters to invest in integrated fish farms.
####The Bangladesh government needs to invest in protecting vulnerable peoples' incomes

through targeted social protection programmes to counteract economic adversity. In the longer
term, the country has to invest wisely that diversifies the economy away from commodity
dependence, which reduces economic vulnerabilities and builds capacity to withstand and
recover from economic downturn.

Agro Sector Rough 1

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Agro Sector Rough 1

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The abundance of natural resources available in Bangladesh supports a range of highly profitable

investment opportunities in agribusiness. Over 90 varieties of vegetable are grown in

COVID-19 Challenges in Supply Chain in Agribusiness:

Things to Do for Minimizing COVID-19 Effect on Agriculture

(1) increase the productivity of fish farms,

(2) reduce post-harvest losses and

(3) encourage exporters to invest in integrated fish farms.

####The Bangladesh government needs to invest in protecting vulnerable peoples' incomes

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