The fastest-growing agro-processing sector of Bangladesh is yet to take advantage of huge demands for such processed goods in the United Kingdom mainly due to standards and certification issues.
Exporters at a stakeholder consultation said of their compliance with certain testing requirements for UK and EU markets like gamma radiation to remove salmonella.
Even there are no sufficient centres or laboratories to do the test, thus causing a long time.
As a result, non-RMG (ready-made garment) export from Bangladesh to the UK faces difficulty in expanding its market share, now largely dominated by India and Pakistan, they opined.
They sought information on specific UK requirements, restriction on harmful pesticide use as per importing countries' prerequisite, government-authorised testing facility that would be accepted globally, and quality and diverse products.
The consultation pressed for educating the peasantry of the negative use of pesticides and good agriculture practices, sufficient cold-storage facilities, contract farming, ensuring traceability in supply chain and foreign investment to help the sector meet global standards and increase export earnings.
The observations and recommendations were made at the consultation on agro-processing industries co-hosted by the Research and Policy Integration for Development (RAPID) and the UKAID in Dhaka on Wednesday.
Commerce ministry additional secretary (export) Md Abdur Rahim Khan was present there as the chief guest.
As part of its ongoing research, commissioned by the UK Secretary of State for the Foreign, Commonwealth and Development Office, RAPID organised consultation exercises to help Bangladeshi exporters take advantage of the UK DCTS Scheme to determine best ways to boost, expand and promote exports from Bangladesh.
The UK has introduced preferential Developing Countries Trading Scheme (DCTS) this year, marking its departure from the EU's Generalised System of Preference (GSP).
As part of the study, RAPID has identified several potential export sectors for the UK market, including local leather and footwear, light engineering and agro-processing sectors, are among the most-prominent ones to unleash their export potential.
Presenting a keynote, RAPID chairman Dr MA Razzaque said the UK is a prospective market for Bangladeshi agro-processed products even after LDC graduation as Bangladesh will benefit from DCTS enhanced preferences with most of its exports continuing to enjoy duty-free market access there until 2029.
Citing International Trade Centre (ITC) data, he said Bangladesh fetched $20 million from agro-processed food exports to the UK out of its total $39-billion import of such products in 2021.
Out of the $20 million, some $14 million came from cereal products against UK's overall import of cereal products worth $4800 million in 2021.
Bangladesh's fetched $480 million from agro-processed products in fiscal year 2022.
The number of export items of agro-processed products has fallen to about 123 in recent years which were about 205 over the decades, noted Mr Razzaque.
Alin Food Trade deputy general manager Monirul Islam said they could not export processed food made of milk and egg to the UK due to the certification issue as UK buyers ask for certificate of every ingredient from government authorities concerned.
"And there is no such designated government authority in this regard," he noted.
Mr Islam requested information on specific UK market standards so exporters could prepare themselves.
Exporters face difficulties in exporting items like spice and puffed rice for pesticide, he said, suggesting restrictions on the use of harmful pesticides to satisfy importers, including the UK.
Bangladesh Fruits, Vegetables and Allied Products Exporters' Association adviser Md Monjurul Islam demanded common warehouse facility to ensure standards.
Md Abid Hossain from Kazi Food Industries Ltd emphasised organic production to expand export earnings and suggested selecting the method of growing organic products and educating farmers accordingly.
Pran Group managing director Eleash Mridha stressed focusing on mainstream UK market beyond ethnic one or non-resident Bangladeshis (NRBs), saying they have reached the NRB community.
To boost export to the UK, they need British Retail Consortium certificate, he said, adding that BSTI could be accredited by UK concerned authority in this regard.
Mr Mridha said they could not export beef or chicken samosa, although they export vegetable samosa, due to certification issue as these are not UK-approved.
He demanded allowing aromatic rice export to bring more foreign currencies in Bangladesh, saying the item is in great demand in restaurants operated by Bangladeshis there, now mostly grabbed by neighbouring countries.
Like RMG that imports raw cotton, they want to import lentil and export them by re-husking and value addition here.
On pesticide use, Mr Mridha said farmers are using pesticides without knowing the negative impact and the agriculture department should make them aware of the proper use of pesticides.
He underlined the importance of good agricultural practices to ensure quality and meet standards.
Speakers at the event demanded that gamma radiation be made commercial, saying only the Bangladesh Atomic Energy Commission does the testing.
They also suggested zone-based contract farming to prevent pesticide contamination, preservation and cold-chain system to preserve seasonal goods for long and a couple of economic zones from the 100 planned zones for the sector.
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