Value-added Agriculture a Policy Priority

Today, Bangladesh's agriculture is no longer limited to food production. Rather, a new economy is being developed around agriculture. In the modern world, the real profit of agriculture lies in "value addition", the main goal of which is to create more value by processing and making raw agricultural products marketable. Bangladesh is now gradually moving in that direction. The Food and Agriculture Organization of the United Nations (FAO) says that agro-processing and agro-based industries play an important role in developing countries in increasing rural employment, increasing farmers' income and reducing food waste.
According to World Bank data, the total value added of Bangladesh's agriculture, forestry and fisheries sectors reached about US$50.25 billion in 2024. Although the share of agriculture in GDP has decreased to about 11 per cent, the importance of agriculture in the country's food security, rural economy and supply of raw materials for industry is immense. In most cases, farmers have been deprived of fair prices after production, be it rice, jute, vegetables, fruits, fish or milk. This is because the price gap between producers and consumers is very high due to the limitations of middlemen and the market system.
For example, during the mango, jackfruit, tomato or potato season, farmers often get prices below the cost of production, while consumers in cities have to buy at several times higher prices. If these products can be converted into juices, pickles, chips, sauces, purees or frozen foods, then not only will farmers benefit, but new industries and employment opportunities will be created. Currently, agro-based small and medium industries are expanding in Bangladesh. Rice mills, dairy products, spice processing, dried fish, frozen food, fruit processing and agri-based export industries are gradually expanding.
Bangladesh's potential in the international market is increasing, especially for safe food, organic products and halal processed food. Many entrepreneurs in the country are now making jams, jellies, juices and dried fruits using local fruits. New possibilities have also been created in making versatile eco-friendly products from jute. Different countries around the world have achieved economic success through value-added agriculture. The Netherlands, although small in size, has become one of the world's largest agricultural exporters through modern agricultural technology, greenhouse cultivation and agricultural product processing. Vietnam has established a strong position in the global market by processing coffee, cashews and seafood. Thailand has achieved great success in tourism and exports by developing an agri-based food industry. 
Bangladesh also has huge potential in this sector. But due to the lack of preservation and processing, a huge amount of agricultural produce is wasted every year. Various reports of the FAO have emphasised the need for cold chains, modern preservation and processing to reduce post-harvest wastage in developing countries.
The government of Bangladesh has recently taken several groundbreaking initiatives (2024-2026) to modernise the agricultural sector and increase value addition. Among them, the farmer card and digital services are one of them. Plans have been made to create an agriculture-based export zone in North Bengal so that farmers can directly participate in the export process. Initiatives have been taken to create a modern one-stop hub for the collection, grading, washing and marketing of agricultural products. An online platform called Smart Agriculture Market is being created where farmers and wholesale buyers can directly connect and buy and sell products. According to the source, the target for agricultural and rural credit disbursement for the fiscal year 2025-2026 is set at Tk 39,000 crore, which is 2.63% more than the previous year. Subsidies of up to 50% on agricultural machinery continue to be provided to reduce the cost of production of agricultural products.
The government has prepared an investment proposal of $1,170.53 million for post-harvest, post-harvest storage and processing. This includes: establishment of cold storage at the community and industrial levels. Provision of refrigerated transport or refrigerated vans. Temperature-controlled rooms and tissue culture labs for fruit and vegetable preservation. Work is underway under the PARTNER project to connect Bangladesh to the global chain or international market system. In addition, a joint project is underway with the international organisation FAO to develop the value chain of jackfruit and shrimp.
In spite of this, there are several challenges in implementing value-added agriculture. First, the country still lacks adequate infrastructure for agricultural preservation and cold storage. Second, most small farmers have limited capital; as a result, they cannot be involved in processing or advanced marketing systems. Third, there is a lack of quality control, food safety, and meeting international standards for agricultural products. Although following HACCP, GAP, or ISO standards is essential for exporting to European or Middle Eastern markets, many entrepreneurs are still lagging behind in these areas. In addition, lack of coordination between farmers, entrepreneurs, and research institutions is also a major problem. Although BARI, BAU and other research institutions have developed new technologies, their commercial application is limited. As a result, effective linkages between research and industry have not been established. Again, in many cases, farmers do not receive adequate information about market demand. In this situation, policy support is very important.
First, easy credit and tax incentives should be provided to the agricultural processing industry. Secondly, cold storage, food processing zones and agricultural logistics hubs should be established at the upazila level. Thirdly, government support for training, quality control and market linkages for farmers should be increased. Fourthly, effective partnerships should be developed between agricultural research institutions, universities and the private sector. 
In addition, trade diplomacy should also be activated to expand international branding and export of agricultural products. Then, it will be possible to transform from "production-orientated agriculture” to “market and value-added agriculture”. The future success of Bangladesh’s agriculture will largely depend on this transformation.
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The writer is Principal Scientific Officer, BARI. He can be reached at [email protected]