Exporters of frozen food, the second biggest foreign currency earner, may get over their raw material supply crunch if the government's recent move to revive talks on contract farming in Myanmar after three years turns out to be successful, reports bdnews24.com.
Contract farming can also meet Bangladesh's growing demands for agricultural commodities, experts said.
"[Contract farming] can be done bilaterally. They will provide land and we will give them input, entrepreneurial skills and know-how," said Syed Mahmudul Huq, chairman of Bangladesh-Myanmar Business Promotion Council.
"We are failing to get the most from our production capacities due to dearth of supply. Our main problem is lack of cultivable land and it is shrinking with increasing population," he said.
"But low demographic pressure on land in Myanmar has kept its vast area unused. We can use this land to produce shrimps and prawns and agricultural commodities," Huq, also a former president of Bangladesh Frozen Foods Exporters Association (BFFEA), said.
Foreign Adviser Iftekhar Ahmed Chowdhury on his visit to Myanmar last month proposed to lease Myanmar's land, offering $8-$25 for each acre of land.
Dhaka and Yangon agreed in principle in 2004 to go for contract farming, Huq said.
Local farmers, he said, can supply as little as only 25 per cent of the production capacity of the plants that stand at nearly 200,000 tonnes a year.
"Raw material stress is our main problem. Many factories are closing down amid raw material crunch," said Kazi Belayet Hossain, president of BFFEA.
Only about 50 of 145 the factories are currently in operation as the remainder closed down mainly due to lack of raw materials.
Low rate of farming also affects production capacities of hatcheries. Despite having capacity to produce ten times more, hatcheries face an annual demand of about 10 billion (1000 crore) pieces of fries.
Bangladesh, a delta on Indian Ocean with a population of about 140 million growing at 1.8 per cent a year, faces continuous decline in its cultivable land, although the demand for local consumption as well as for industries is on increase.
"Myanmar can be our buffer stock. It has enough area for farming," Huq said
With a population of about 50 million (5 crore) sprawled over 6,76,577 square kilometres, Myanmar remains untapped although it is endowed by huge natural resources.
Availability of both sea and fresh water due to proximity to sea holds huge potential for aquaculture industry in Myanmar, he said.
Huq said paddy, onion, soybean, maize, tea and sugarcane could be produced there. A vast area of land can be used for livestock farming to meet Bangladesh's growing demand.
According to him, Myanmar's government, its businesses and farmers are keen on helping Bangladesh out.
But official deals between the governments on issues such as pricing policy, tariff rates and banking arrangement are necessary, he said.
In fiscal 2005-06, Bangladesh's exports to Myanmar stood at $5.19 million against its imports of $29.53 million.
Move to revive talks on contract farming with Myanmar
FE Team | Published: June 30, 2007 00:00:00 | Updated: February 01, 2018 00:00:00
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