AGRO INDUSTRY IN BANGLADESH:
PROBLEMS AND PROSPECTS
Course: Bus101 Section: 21
Dept. of BBA
Submitted To:
Dewan Mehrab Ashrafi
Senior Lecturer, Dept. of BBA
East West University
Submitted By:
Ummay Habiba
2023-3-10-186
Tahrim Nigar Ashrafi
2023-3-10-181
Tahmida Binte Zakir
2023-3-10-419
Wasima Nuzhat Noumi
2023-3-10-421
Afra Binte Masud
2023-3-10-184
12th December, 2023
Table of Contents
Introduction ............................................................................................. 2
Problem Statement .................................................................................. 2
Scope of the Study .................................................................................. 2
Contribution of the Study ....................................................................... 3
Structure of the Study ............................................................................. 3
Objectives ................................................................................................. 3
Literature Review .................................................................................... 4
Methodology ............................................................................................. 6
Data Collection ....................................................................................... 6
Data Source Selection ............................................................................. 6
Content Analysis ..................................................................................... 6
Findings .................................................................................................... 7
Challenges .............................................................................................. 7
Remedies ................................................................................................. 7
Opportunities .......................................................................................... 8
Conclusion ................................................................................................ 9
References .............................................................................................. 10
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AGRO INDUSTRY IN BANGLADESH:
PROBLEMS & PROSPECTS
INTRODUCTION:
The agro-industry is regarded as the key component of the Bangladesh economy that mainly
comprises the post-harvest activities of processing and preserving agricultural products for
intermediate or final consumption. It plays a pivotal role in the country's economy, contributing
significantly to employment and GDP. Bangladeshi agro sector is characterized by a diverse range
of crops including rice, jute, and various fruits and vegetables. However, it faces various challenges
that impact its growth and sustainability such as limited technology adoption, resource scarcity,
post-harvest losses, lack of infrastructure, smallholder dominance, etc. It is hoped that the study
on agro-industrial problems and prospects will be a notable investigation in Bangladesh.
Problem Statement:
Through this study, it can be known that, the agricultural industry faces great challenges in
optimizing resource use and in minimizing environmental impacts during crop production. Despite
advances in agricultural practices, there is an urgent need to develop sustainable and efficient
methodologies to increase crop yields while mitigating resource depletion and environmental
degradation. Addressing this issue is important to ensure food security, economic stability, and
environmental sustainability of the agricultural sector.
Scope of the Study:
This study examines the multifaceted landscape of Bangladesh's agribusiness sector to analyze the
challenges and opportunities shaping the country's current status and future potential. The study
will mainly focus on:
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Crop Production Challenges
Supply Chain Bottlenecks
Technological Interventions
Market Dynamics
Policy Implications
This study will be conducted over a specified time frame, considering data from the past decade
to the present. The research will be limited to the geographical confines of Bangladesh, recognizing
that external factors may influence the local agro-industry. Certain sub-sectors and regions may be
excluded due to practical limitations, and the findings will provide valuable insights to
stakeholders seeking to address challenges and leverage the potential of Bangladesh's agricultural
industry.
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Contribution of the Study:
This study contributes to the existing body of knowledge by examining the pressing challenges
facing the agribusiness sector in Bangladesh and thereby identifying specific gaps in
understanding. By exploring these issues, this study aims to promote sustainable development and
growth of the agricultural sector in Bangladesh by providing practical ideas and potential solutions.
The study not only examines the current challenges but also reveals prospects that can positively
impact the future trajectory of the sector.
Structure of the Study:
We'll provide here the objective of the study to know the aims of this study, a literature review to
contextualize the study, a methodological approach to employ a mixed methods study, an
exploration of current issues, and an exploration of opportunities and prospects in findings and
finally a conclusion that synthesizes the key findings and provides practical recommendations for
policymakers and industry stakeholders.
OBJECTIVE OF THE STUDY:
● Explore the challenges faced by agricultural organizations in Bangladesh
● Some policy recommendations for the development of the agricultural industry in
Bangladesh
● Find existing and potential opportunities for the Agro-based industry in Bangladesh
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LITERATURE REVIEW:
Many researchers have carried out research works on various factors concerning the agriculturebased sector and development policies. Some significant findings from the empirical research
have been taken into account for this paper.
Role of Agriculture in Bangladesh Economy: Uncovering the Problems and Challenges by
Rahman (2017) implores a brief scenario of the agriculture sector in Bangladesh. The
agricultural sector remains an irreplaceable driving force for the economic growth of the country.
Based on secondary data, the study intends to describe the role of agriculture in the economy of
Bangladesh with a focus on the problems and challenges of the sector. According to this study,
the main reason behind the loss of agricultural land in Bangladesh is the growth of rural housing
followed by urbanization and industrialization. Residences of an increasing population of the
country are expanding at the cost of agricultural land. Despite many prospects in the agriculture
sector, some challenges are still displayed there. To address the challenges, several collaborative
and coordinated steps should be initiated. As food security is a major concern for Bangladesh,
necessary steps should be taken to conserve agricultural land from its shifting to non-agricultural
utilization.
Role of agro-industry in Bangladesh economy: an empirical analysis of linkages and multipliers
by Quddus (2009) demonstrates that agro industry contributes a significant portion of national
income and the prospect of employment generation is increasing at the higher extent for the
sectors like food processing, tanning and leather finishing, and leather industry. Food processing,
fish processing, tanning and leather finishing, leather fabrication, livestock, and poultry were the
key sectors of the Bangladesh economy. Agro-industry and high value-added agricultural sector
is presented as the key sector to improve inequality problems, smoother employment
transformation, generate high growth, and generate high output production. The study shows that
some of the agricultural production sectors and most of the agricultural processing sectors have
better potential to generate more income for different households to create better income
distribution and induce more savings in the country. The high value of multipliers in the case of
agro-industries indicates that the knock-on effects are relatively large compared with the initial
impact of increased output.
Problems and Prospects of Crop Diversification in Bangladesh by Zohir (1993) discusses some
strategies for increasing crop diversification in Bangladesh away from a reliance on the modern
variety of Boro rice. The study identifies some constraints to expanding the acreage of noncereal crops like vegetables and spices. These include limited areas of high and medium-high
land, lack of infrastructure to access markets, and lack of irrigation technology suited for noncereal crops. Furthermore, the study suggests policies like reducing marketing risks, promoting
exports and agro-processing, improving irrigation infrastructure, conducting research on dual
cereal-non-cereal crop production, and increasing surface water availability for the cause
significantly.
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An Agribusiness development approach of beef cattle in selected areas of Bangladesh by Sarma
(2016) concludes that the study was pursued to ascertain the existing internal and external
factors, alternative strategies, and priorities of the strategies applied in enhancing beef cattle
agribusiness in the Pabna and Sirajganj districts in Bangladesh. The primary data and present
study were collected by employing various techniques such as survey, FGD, KII, and
observation methods. The total sample size was 180 which were selected through a convenience
sampling technique. The following analytical tools were employed in the study which are, (i)
IFE-EFE analysis, (ii) SWOT analysis, (iii) SWOT matrix, and (iv) QSPM model. By analyzing
all the factors from SWOT, four strategies were developed to determine the beef cattle
development. The best strategy was selected by using the QSPM matrix. The results IFE is
2.610, EFE is 2.438 and the total weighted score is 5.833 indicating that beef cattle sub-sector
agribusiness are opportunities to explore their strengths and minimize their weaknesses. The beef
cattle agribusiness expanded through the implementation of integrated or contract farming that
supported backward and forward linkage and support services.
Agribusiness Potentials for Bangladesh – an Analysis by Mahboob and Islam (2014) concludes
that Bangladesh cannot sustain long-run economic progress without having a strong agricultural
sector accompanied by a dynamic agribusiness sub-sector. At a general level, the paper
recommends various structural, institutional, and market-friendly policy reforms accompanied by
infrastructural developments to encourage entrepreneurship, innovation, and investments along
with better and more effective strategic management of this sector. Such reforms are expected to
promote better utilization of scarce resources to promote a strong, dynamic, and sustainable
agribusiness sector that would be able to contribute substantially to the industrialization and
economic growth of the country.
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METHODOLOGY
The methodology employed to understand and analyze the dynamics of the agro the agroindustry is pivotal in comprehending its multifaceted aspects and intricacies. This section
delineates the systematic approach undertaken to investigate the agricultural sectors’ operations,
practices, and challenges within the context of a specific focus or study. The methodological
framework adopted in this study aims to provide a comprehensive understanding of the agroindustries landscape while ensuring reliability, validity, and relevance in capturing its nuances.
Interpretation, this section aims to shed light on the structured approach utilized to derive
insights and draw conclusions, thereby contributing to a holistic comprehension of the agroindustry’s functioning and challenges.
Data Collection:
The data collection process for this study involved sourcing secondary data from a diverse array
of reputable and credible sources pertinent to the agro-industry. Primary repositories included
academic journals, industry publications, and established databases specializing in agricultural
studies and economic analyses within the context of Bangladesh.
Data Source Selection:
In this study based on secondary data analysis, the sampling process involved a meticulous
selection of relevant sources rather than traditional sampling methods used in primary data
collection. The selection criteria were established to ensure the inclusion of comprehensive,
diverse, and authoritative sources within the agro-industry domain.
Content Analysis:
Qualitative content analysis was utilized to scrutinize and categorize textual data extracted from
reports, articles, and publications. This method facilitated the identification of recurring themes,
patterns, and emerging topics within agro-industry.
The methodology employed in this study centered on the analysis of secondary data within the
agro-industry, aimed to provide a structured and comprehensive approach to understanding the
dynamics and intricacies of this vital sector.
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FINDINGS:
Exploring ways to improve the agro-industry in Bangladesh involves finding practical solutions
for challenges, remedies, and unlocking opportunities. By understanding the needs of farmers
and the agricultural sector, ways to increase productivity, access credit, and use helpful
technologies can be found. This exploration is about discovering strategies that can help the
agro-industry from farmers to larger agricultural communities in Bangladesh.
Challenges:
Several problems and challenges affect the agro-industry in Bangladesh. Some of those
challenges are discussed below:
1. Infrastructure shortcomings: Inadequate transportation, storage facilities, and irrigation
systems hinder the efficient movement of agricultural products and contribute to post-harvest
losses.
2. Water management issues: Unequal distribution of water combined with efficient use of water
creates problems in managing water efficiently and effectively for crops.
3. Pest and disease control: Farmers face difficulties in maintaining and preventing crop diseases
and pest infestations impacting yields and overall productivity.
4. Limited access to credit: Many farmers struggle to access financial resources fendering their
ability to invest in equipment technology and inputs that could significantly improve
productivity.
5. Access to technology: Limited access to modern farming technology such as precision
agricultural tools and farm management software impedes the industry's ability to optimize
resource use and improve efficiency.
Furthermore, fluctuating market prices, climate change, land fragmentation, skill development,
etc. are some more problems and challenges of the agro-industry in Bangladesh as well.
Remedies:
Seeking a solution for the agro-industry in Bangladesh involve finding simple and practical
solution to challenges. The goal is to support the growth and sustainability of agriculture in
Bangladesh. This quick overview focuses on simple remedies to enhance the agro-industry and
improve the outcome for farmers in the country. The remedies are as follows:
1. Infrastructure shortcoming: To fix infrastructure issues in Bangladesh’s agro-industry, better
roads and transport are needed so that crops can reach markets easily. Setting up cold storage
facilities helps to keep fruits and veggies fresh, reducing wastage and making sure there is
always enough water for crops by improving the irrigation system. Using digital tools for
farming and sharing useful information is a good idea. Support from the government and benefits
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for private companies can make a big difference. Lastly, teaching farmers modern method will
help them to do better and keeps things sustainable.
2. Water management issue: Solving water challenges in Bangladesh's agro-industry involve
adopting effective irrigation method to ensure crops receive the right amount of water without
wastage. Encouraging water conservation among farmers is essential. Promoting methods like
rainwater collection and responsible water use will be also effective. Investing in storage
facilities is essential for securing water reserves during periods of scarcity. Ensuring supply for
crops. Additionally, educating farmers on optimal irrigation will help them to understand the
specific water needs of different crops, contributing to more sustainable water management
practices in Bangladesh.
3. Pest and disease control: To keep crops healthy it is important to tackle pests and diseases
wisely. Instead of using strong chemicals, natural helpers and organic treatment should be used
that will not hurt the environment. By regularly checking crops, any issues can be checked early.
Mixing up the plants and their planting area can confuse bugs and diseases. Teaching farmers
easy and clever ways to deal with this problem so that crops stay strong and farmers become
successful.
4. Limited access to credit: To fix the problem of not getting enough credit for farming in
Bangladesh, some simple things can be done. At first, farmers should be taught about money and
loans so that they know how it works. The process of getting a loan should be made easier and
not so complicated. Finding different ways for farmers to show they can pay back the loan and
not just traditional things like land. The government should encourage banks by making rules to
give loans to farmers. Moreover, technology like phones should be used to make banking easier
for farmers to get the money they need to grow their farms in Bangladesh.
5. Access to technology: To improve the use of technology in the agro-industry in Bangladesh,
several simple yet effective steps can be taken. First, farmers should be taught how to use
technological tools like smartphones to get useful information about farming. These should be
made easy to understand and available in the local language. The government can help by
supporting programs that bring technology to farmers. Providing affordable and reliable internet
access in rural areas can be done as well. Companies can create user-friendly apps and services
tailored to the needs of farmers. By doing these things, technology can be made more accessible
and helpful for the agro-industry in Bangladesh, helping farmers enhance their productivity and
overall success.
Opportunities:
The agro-industry in Bangladesh holds significant prospects, offering opportunities for growth
and development. Some key prospects include:
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1. Export Opportunities: The increasing demand for organic products and quality agricultural
products has created export opportunities and made Bangladesh a potential exporter in the global
market.
2. Multiple Agro-Climatic Zones: Bangladesh’s diverse climates and terrains support a diverse
agricultural industry, providing the opportunity to grow a variety of crops throughout the year.
3. Technological Advances: The use of modern agricultural practices, machinery, and
technologies can increase productivity, reduce post-harvest losses, and increase the overall
productivity of agricultural enterprises.
4. Development of Aquaculture: Bangladesh’s abundant water resources provide opportunities
for the development of aquaculture and contribute to the success of the country's fisheries.
5. Government Initiatives: Promotes government policies, grants, and investments in agricultural
research and development to improve agricultural products, increase yields, and improve overall
profits.
CONCLUSION:
The agro-industry in Bangladesh is a crucial part of the economy, encompassing post-harvest
activities and contributing to employment and GDP. However, it faces challenges such as limited
technology adoption, resource scarcity, and post-harvest losses. The agricultural industry also
needs to develop sustainable and efficient methodologies to increase crop yields while
minimizing environmental impacts. This study is conducted to examine the challenges and
potential of the agribusiness sector in Bangladesh, aiming to provide valuable insights to
stakeholders. The study aims to promote sustainable development and growth of the agricultural
sector by identifying specific gaps in understanding and exploring potential solutions.
The objective of the study is to explore the challenges faced by agricultural organizations in
Bangladesh, provide policy recommendations, and find existing and potential opportunities for
the agro-based industry. The literature review covers the role of agriculture in the country's
economy, problems and prospects of crop diversification, and the importance of a strong
agricultural sector. The methodology involves a systematic approach to understanding and
analyzing the dynamics of the agro-industry, including data collection and qualitative content
analysis. The findings explore ways to improve the agro-industry, including challenges,
remedies, and opportunities such as export opportunities and technological advances.
In conclusion, the study aims to shed light on the challenges and opportunities in Bangladesh's
agro-industry, providing valuable insights and practical recommendations for policymakers and
industry stakeholders.
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REFERENCES:
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Bangladesh Development Studies, 23(3), 73-90.http://www.jstor.org/stable/40795480
2. Kumar,D.(2019).Prospects and Challenges of Agro-Industry in Bangladesh: An
Agripreneur View, 14(31),1379-1389.http://www.academicjournals.org/AJAR
3. Muhammad Mahboob Ali and Anisul M. Islam (2011).Developing Agribusiness
Strategies for Bangladesh-An Analysis,AIUB Bus Econ Working Paper Series, No 201101, http://orp.aiub.edu/
4. Shiam, Md. A. (2022, July 29).Growth of agro based industries in
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