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Prospects of agro-processing in the northern region

Aynal Haque | Thursday, 26 February 2009


THE northern region of the country producing fruits and vegetables, offers enormous potential for agro-processing enterprises.

The food-surplus region produces plenty of rice, maize, wheat and soybean, mangoes, bananas, papayas and tomatoes and vegetables due to its fertile soil and favourable topography and climate.

Cauliflower, tomato, white gourd, beans, spinach, puin, pea and baby corn are cash crops as are its broccoli, carrot, celery, capsicum, and strawberry. The Jamuna Bridge radically improved communication with the northern districts encouraging increased production of cereals, fruits, vegetables and livestocks.

Given uninterrupted power supply, the region is ideal for agro-business. Agro-based small, medium and big industries in northern districts could transform the national economy.

The government needs to upgrade the Rajshahi Airport to facilitate direct export of processed agri-products, fresh vegetables and fruits to the Middle Eastern and European countries. Setting up of agro-processing industries should be encouraged to be set up to add value to agricultural output and encourage the farmers to grow for profit.

The northern region meets 52 per cent of the country's foodgrain requirement and supplies 76 per cent of raw materials for the country's agro-based industries. Unfortunately no big industry has yet been established there.

Business leaders in the northern region think the area is suitable for an agro-based export processing zone (EPZ) for its abundance of quality and cheap raw materials, cereals, vegetables, fruits, meat and milk.

The region's good communication, suitable climate, law and order, and gifted entrepreneurs, land price and competitive labour costs also make it an ideal industrial location.

Potato flakes, with great international demand, call for the processing units. Rajshahi producing 49 per cent of the country's quality mangoes, does offer the opportunity for setting up of mango-based industries.

Rajshahi division produces nearly one-third of the country's rice output. For edible oil from rice bran, according to a banker in the region, a large number of medium sized rice-bran oil processing mills could be set up.

Quality aromatic rice grown in Rajshahi, Naogaon, Chapainawabganj, Natore and Dinajpur could be exported. There is a need with collaborative efforts for this purpose. The producers, millers, exporters and financial institutions can do a lot. Backward and forward linkages among maize growers, buyers and entrepreneurs can result in more feed mills to cater to the growing demand of the poultry and dairy industries of the country.

The RAKUB, in collaboration with the Department of Agriculture Extension (DAE) has been implementing a seven-year 'Northwest Crop Diversification Project (NCDP)' to raise production, processing and marketing of 30 high-value agricultural products especially cereals, fruits and vegetables. In this connection underutilisation of the potentials is a problem.

Due to inadequate storage and processing facility in the region, much of fruits and vegetables perish every year.