Country's agro-processing sector could contribute a lot more to the economy, especially in terms of export earnings, if necessary policy supports and patronisation are provided for its development, a leading businessman said.
"Despite having immense potential, the sector is yet to make desired contribution," said
The sector was not growing at an expected level mainly due to lack of logistic support, research and development, high cost of investment and product diversification, he told the FE in an interview at the BAPA headquarters in the city on Wednesday.
"Unlike apparel sector, the lion's share of the raw materials needed for the sector is homegrown," he said, adding: "The sector's further development will also directly benefit the country's millions of farmers."
Identifying the challenges, Mr Islam, who was a deputy finance minister, said the entrepreneurs have to visit different ministries, including industry, agriculture, food and commerce, to get things done.
Keeping this in view, he suggested establishing a separate ministry to look into the development of the sector, considering the multi-billion dollar global agro-processing business and its direct benefit to the farmers.
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"Bangladeshi agro-processing sector earned around $300 million from export in fiscal year (FY) 2016-17," he said, adding that the BAPA has set a target to earn $1.0 billion within 2021.
According to BAPA, the sector earned $240.4 million in FY 2015-16 and 224.2 million in FY 2014-15. The figures were $153.5 million and $101.49 million in FY 2013-14 and 2012-13 respectively.
The agro-processing has been declared as a thrust sector in the Industrial Policy 2016. However, it needed more support to compete in the global market, said Mr Fakhrul Islam, group chairman of AP (DACCA) Limited.
He said: "The government should reduce the interest rate on loans for the entrepreneurs, and patronise BAPA to establish a modern quality control laboratory."
At present, the local companies export processed food to 140 countries, including the
Bangladeshi export items like fruit juice, fruit drinks, biscuits, chanachur, prepared nuts, potato chips, potato flakes, pickles and vegetables.
The local market for agro-processing sector has also been growing at a significant rate as people are inclining to ready-to-cook and ready-to-eat food items. The BAPA has been organising an international expo for the last few years to facilitate flourishing the business.
In this connection, a three-day international expo titled 5th BAPA Foodpro will begin at the International Convention City Bashundhara (ICCB) in the city today.
Some 250 companies from 16 countries are participating in the exposition, which will remain open from
Mr Islam said the expo will be a fantastic platform for the businesses to know about the latest products and services related to agro-processing industry.
"Several renowned machinery manufacturers will also participate in the expo to showcase their latest technology at one place," he said.
He expected the fair will achieve its goal by creating greater interaction among the businesses. The fifth edition of the fair has been organised in a wider arrangement than that of the previous years, he added.
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