Food, a prospective industry
Saturday, 19 September 2009
Md Asaduzzaman
Bangladesh, somehow, could not exploit its natural advantage in exporting farm products to the world market. Value-addition to agricultural products for export, a hugely prospective area, is exploited by a handful of entrepreneurs, who cannot be blamed for lacking the vigour. An FE report recently showed how three potato flakes and potato starch industries could not go into production for the last four years after investing Tk 3.0 billion (300 crore) in the projects.
Bangladesh can top the huge international market for potato flakes starch, chips and other products. The entrepreneurs ought to know how to take advantage in a country that grows potato effortlessly.
Last year's potato output, far in excess of domestic demand could be exported after value addition. But the three new enterprises which could do it were struggling with law suits.
By rescheduling the loans, the banks could have allowed the three industries to start production and export. In that case, the entrepreneurs could start servicing their credit, the banks would not have to bear the burden of non-performing loans, and there would be employment at the growers' level as well as at the three plants. Moreover, a breakthrough by the three enterprises would attract other entrepreneurs to potato food industry.
Similarly, tomato, gherkin, strawberry, baby corn, mushroom and other vegetables and fruits can be commercially grown, processed and exported. For the enterprises in the sector to grow, the banks can treat them with flexibility.
The banks should see the merit of supporting this sector leniently even if that requires bending of some rules for them now. The government can lease out lands to entrepreneurs in this sector for growing the basic farm produces. Government's fiscal and policy stimulus could help the prospective industry to grow.
Bangladesh, somehow, could not exploit its natural advantage in exporting farm products to the world market. Value-addition to agricultural products for export, a hugely prospective area, is exploited by a handful of entrepreneurs, who cannot be blamed for lacking the vigour. An FE report recently showed how three potato flakes and potato starch industries could not go into production for the last four years after investing Tk 3.0 billion (300 crore) in the projects.
Bangladesh can top the huge international market for potato flakes starch, chips and other products. The entrepreneurs ought to know how to take advantage in a country that grows potato effortlessly.
Last year's potato output, far in excess of domestic demand could be exported after value addition. But the three new enterprises which could do it were struggling with law suits.
By rescheduling the loans, the banks could have allowed the three industries to start production and export. In that case, the entrepreneurs could start servicing their credit, the banks would not have to bear the burden of non-performing loans, and there would be employment at the growers' level as well as at the three plants. Moreover, a breakthrough by the three enterprises would attract other entrepreneurs to potato food industry.
Similarly, tomato, gherkin, strawberry, baby corn, mushroom and other vegetables and fruits can be commercially grown, processed and exported. For the enterprises in the sector to grow, the banks can treat them with flexibility.
The banks should see the merit of supporting this sector leniently even if that requires bending of some rules for them now. The government can lease out lands to entrepreneurs in this sector for growing the basic farm produces. Government's fiscal and policy stimulus could help the prospective industry to grow.