This letter is in reference to a news item titled 'Agri exports fetch ever highest $909 million' that was published in the Financial Express on July 11, 2019.
The report stated that Bangladesh received its all-time high earning from agricultural product exports in fiscal year (FY) 2018-19 while riding on processed food shipments. Business insiders have attributed this success to massive improvement in "compliance issues" of the country which resulted in a positive impact on export receipts. The country bagged $909 million, 35 per cent up from that of FY '18, by exporting processed items like vegetables, betel leaf, tea, dry food, tobacco, fruit and foliage.
According to the Export Promotion Bureau (EPB), earnings from farm produce in FY '19 are 28 per cent higher than the $711-million target. Dry and other processed food items fetched 77 per cent or $700 million of the total earnings. Bangladesh usually exports more than 700 items, including garments, jute and jute products, frozen fish, leather and leather goods, pharmaceuticals, plastic, furniture, ceramics, handicrafts, light-engineering products, mainly bicycle, and agricultural products like vegetables and fruits.
While Bangladesh is a net agricultural importer, it has also been successful at exporting high-value products such as shrimp, sea fish, fruit, vegetables, and processed foods as there is high demand for such items from non-resident Bangladeshis as well as foreigners. We can capitalise on the opportunity to raise export of agricultural products through low production cost, possible because of the availability of cheap labour. Bangladesh also has a favourable agro-climatic zone, which is ideal for producing many kinds of horticultural and agro-products.
It is true that the European Union member countries banned the import of six Bangladeshi items in 2014, claiming the presence of unexpected elements in them. Following the ban, Bangladesh took a hard line and started executing rules and regulations properly.
Agriculture is widespread and many people might take to this sector with a modern, business mind if the business environment is favourable. Bangladesh has enormous opportunities in agro-based industries.
The emerging opportunities in agro-business should attract more investors. The new generation of educated people, with interests in villages and rural areas, can make a difference by engaging in agro-based industry. Government has an export incentive policy for non-traditional food and non-food items. Agro-product exporters can take advantage of this lucrative incentive.
About 25 per cent of land in Bangladesh remains unused or used in unproductive purposes. Such lands can be used for productive purposes like growing agricultural products. At the same time, government should encourage and support such exporters so that this sector can sustain the growth it has been enjoying.
Md. Zillur Rahaman
Satish Sarker Road,
Gandaria, Dhaka.
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