Page 60 - IBT Sept 2021 (1)

Agro Industry
By Maimun Mustafa September 2021
Reaping percent—as opposed to manufacturing (7.5%)
and the services sector (6.2%).
Nevertheless, even though the relative
the Benefits significance of income and employment from
agriculture has fallen in Bangladesh, the
absolute contribution has increased. On
average there has been a 40 percent increase
over the last few years. Additionally, a
significant fraction of the underprivileged rely
on agriculture as the principal source of
income and employment. Indirect agricultural
dependence is revealed through employment in
agro-centric services and rural businesses.
Moreover, Agriculture provides basic raw
materials for industrial processing and many
agro-processing industries are fully dependent
on agriculture for basic raw materials which
include jute, fruit juice, spices, rice milling,
sugar, tea, edible oil, tobacco, jute textiles,
cotton textiles, starch and others which are
considered to be cash crops for the country. As
such agriculture can serve as an influential
driving force to not only increase livelihoods,
but also the whole economy of Bangladesh.
Bangladesh’s $1 Billion Export
Milestone
Bangladesh’s earnings from agricultural
products grew multifold in the last 12 years
and the export revenue has crossed the
one-billion-dollar milestone for the first time in
2020-2021. This is astonishingly almost a 20%
rise from the past fiscal year, which is even
more commendable given that we are facing a
sluggish economy under the COVID-19
pandemic.
exports amounted to $122 million, the last
On the anniversary of 5 decades of Photographs: Din M Shibly Compared to 2008-2009 where agriculture
financial year witnessed export earnings
Bangladesh, the agriculture sector tripled to an extraordinary $1,028 growth.
According to the Export Promotion Bureau
has had a transformative journey, (EPB) this represented a jump of 0.78% in
2008-09 to 2.87% in 2020-21 to the
and is one of the country’s highest contribution of agriculture to the national
exports earnings of Bangladesh.
employing industries Bangladesh is primarily an agrarian economy,
this industry is the single largest producing Roots of Progress
sector as 70% of the population depend on it for This tremendous progress was driven by some
their livelihood. It contributes to 14% of the sub-categories. Dry food registered the highest
50 Year Development country's GDP and employs around 40% of the increase from $193 million in 2019-20 to $283
total labor force. 60 percent of overall
in 2020-21, almost 46%. Fruit exports also
of our Agro Sector agricultural output comes from the crops grew by 18%. However, not all sub-sectors
sub-sector, followed by fisheries and livestock. flourished. vegetable exports faced a 27% drop
While developing economies are changing their However, the contribution to total GDP fell from from $164 million to $119 million.
concentration from agriculture to secondary and tertiary around 18 percent to 14 percent in recent years. Bangladesh’s now diversified agriproducts
sectors, the agricultural industry in Bangladesh is still a For the past three decades the average growth of export basket comprises a range of products
strong contributor to the economic statistics. As the agriculture sector has hovered around 3.2 including ready-to-eat dry food confectionaries,
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fruits, vegetables, tobacco, tea, cut flowers and also, spices.
Farmers through the Ages
According to the latest statistics from the 2016-2017 Labor
Force Survey by BBS, a total of 22.7 million people involved in
agriculture, 45% are women and of all women in the labor
market, they constitute almost 73 percent
Bumper Crop
Rice production in Bangladesh was around 12 million metric
tons in the late 1970s. It has now increased to more than 36
million metric tons. Wheat contributed nearly 2 million metric
tons around just before the new century set in. The yield later
dwindled to nearly 700,000 million metric tons in around
2006-2007 while maize has steadily grown to around 3.5
million metric tons by 2018-2019. Crops for which yield
showed either a negative or stationary situation include
pulses, sugarcane and possibly jute. In case of pulses, in early
1980s, the officially reported production was around 500,000
metric tons which fell to less than half of that in around
2009-2010 before doubling again by 2017-2018. The other
commercial crop that has apparently shown volatility over
time is jute.
Fisheries Flow
Based on official statistics of the Department of Fisheries, fish
production is stated to have been rising at around 5 percent
annually over the last 20 years. The data shows that by
2017-2018 pond fishery yielded just above 19 lakh tons
accounting for some 44 percent of total fish production and
just about 79 percent of cultured fish catch.
Rising Livestock and Poultry
News outlets quote various sources that there may be
commercial poultry farms numbering anywhere between
65,000 and 150,000. The number of eggs produced per year is
estimated to range from 20-33 million eggs/day, a difference
greater than 50 percent. With the new generation increasingly
involved in livestock trade especially keeping in annual Eid
markets there may be space for growth in the livestock
economy.
Old Issues, New Packaging
Even though the feudal zamindari system was done away with
in the 1950s, the British form of exploitation of the poor
farmers has been replaced by some middle-men
in recent years. In addition, this sector is
hindered by extensive pressure on arable land,
unjust prices, inadequate access to inputs and
resources, and climate change risks.
Seasons of Challenge
agriproducts traders strongly believe that
Vegetables, fruits and other perishable
Bangladesh can earn much more than $1
billion from agriproduct export and opine that
the country's optimal potential has been
reached.
Chief complaints arise in the area that
exporters do have the proper policies
assistance. Moreover, limited availability of
cargo space remains another hindrance to carry
out business activities internationally.
Exporters suggest that trade revenue will
increase in Bangladesh from the agriculture
sector. The government individually or in
conjunction with the private sector can install
more processing plants, packaging facilities,
packing houses, hygienic cargo villages,
improved infrastructures at airports and more
air cargo facilities.
By contrast, according to local newspaper
reports, officials at the Ministry of Agriculture
and Department of Agricultural Extension have
stated that exporters need to improve product
quality, ensure sanitary measures and adopt
good agricultural practices (GAP) to gain
greater share of the business in international
markets.
Innovation for Good
Undoubtedly the adoption of technological
innovation in agriculture will lead to improving
cultivation efficiency, labor productivity,
greater food security and quality exports.
Mechanization Miracles
To mitigate the increasing droughts, flooding
and extreme weather events that Bangladesh is
facing due to climate change, rural
communities can evolve by adopting
innovative, localized solutions that merge
sustainable practices and tech. Mechanization
has various benefits that include an overall
increase in cropping intensity, yield, decrease
in wastage, and saving in production cost in
comparison to traditional farming techniques.
Mechanization utilizes technologies like axial
flow pumps, reapers and seed drills – to assist
farmers thrive under gradually difficult
growing environments.
Axial Flow Pumps Acceleration
The axial flow pump is an inexpensive surface water irrigation
technology that can lower costs up to 50 percent at areas
where the water source is close to the field surface, and
therefore is easy to pump up to irrigate fields.
Expediting Extraction
Groundwater extraction is another common approach to
irrigation in much of South Asia. This low-energy and
low-carbon emissions surface water substitute can assist in
lowering high energy costs, as well as, decreasing present
health risks due to natural arsenic contamination of
groundwater in Bangladesh.
Reaping Success
Reapers allow farmers to cope with increasing labor shortage
by mechanically harvesting and planting the next season’s
crops. The two-wheeled mechanical reaper is particularly
popular in Bangladesh and can save farmers 30 percent of
their usual harvesting costs.
Drilling Dividends
Seed fertilizer drills till, plant and fertilize crops in lines
concurrently and with greater accuracy. These drills are
frequently used as attachments on two-wheeled tractors and
can also allow farmers to plant using conservation agriculture
practices like strip tilling (a system that tills only small strips
of land into which seed and fertilizer are placed, which
reduces production costs, conserves soil moisture and helps
boost yields).
Tipping Point
According to studies, Total factor Productivity (TIP) reflects the
modest rate of 0.6 percent to 1.0 percent over a 50-year period
impact of investments in rural infrastructure that grew at a
from 1950 to 2000. TIP can be improved through expanding
farm size, promoting crop diversification and advanced
benefits through research and development.
Financial Innovation.
Farmers tend to have fluctuating seasonal
revenue. Even though there are various
Microfinance Institutions (MFI), that support
farmers in accessibility of farm equipment,
and state-subsidized purchase options, there
exists no national organization or entity that
prices. During peak planting season, the
produces and sells machinery at below-market
increased demand for machinery rentals
skyrockets significantly and this impacts
eventual output.
The Genetic Factor
High-Yielding Varieties (HYV) are integral in
securing cropping intensity, which is over
190%. They also are important in maintaining
the output levels of integral crops such as
Boro rice in the path towards sustainable
self-sufficiency. Genetically Modified
Organisms (GMO) offer a solution to climate
change prone Bangladesh by engineering crop
varieties that are resistant to weather
conditions, pests, flooding and/or saline
intrusion. Bangladesh’s first local GMO, Bt
Brinjal, was launched in 2014 and a 2019
Institute of Food Policy Research (IFPRI) study
showed that Bt Brinjal farmers benefitted from
a 55 percent rise in revenues, increasing net
profit by over BDT 30,000 per hectare.
Upskilling Ahead
Labor needs to be mobilized and trained in the
operation of technology to reap their benefits.
Otherwise availability of new tools without
users does not assist the average farmer.
Digital Markets and the
Middle Man
Fair prices can be given to all concerned
parties if the middle-men are cut out. Hence
online platforms can be encouraged to ensure
buyers come in direct contact with sellers.
IOT Induction
The Internet of Things (IoT) technologies can
involve remote monitoring of conditions
essential to farming output such as soil
salinity, fertility, temperature, etc. through
one device in the cropping zone, and
transmission of that data to one or multiple
data terminals or computers. Data driven
monitoring can only assist cultivation and
production.
Geospatial Guardianship
Monitoring of farms and fisheries through satellite t
can assist in international compliance, as well as pa
for online agro-insurance premiums verification (and
payment) if coupled with artificial intelligence. Thi
bring in much needed insurance coverage to farmers wi
long delays while also bringing increased confidence
international buyers.
Digital Crowdfunding
Enabling blockchain-enabled peer-to-peer lending woul
the way for a digital platform to facilitate crowdfun
farming activity so that farmers can find more fundin
channels.
More Gains for Marginalized
Priority strategies in advocating agriculture include
shrinking average farm size and diseconomies of scale
marginal farmers.
Climate Change Capacity Building
Global climate change adaptation strategies to lower
impact on water availability, quality and disruptions
adopted as policy interventions. There is a need to r
coastal embankment and improve water efficiency throu
long-term water management strategies.
Media Momentum
Media and community support and engagement has and ca
contribute to significant momentum to agriculture
revitalization and overall efficiency. This can lead
promotion of agriculture as a contemporary entreprene
track for the new generation value and also encouragi
development.
Celebrating the $1 billion exports earnings of agro-p
the silver jubilee of Bangladesh’s birth is indeed an
extraordinary feat. However, with the right skilling,
policy support Bangladesh’s promising agriculture ind
can reach greater milestones in the days ahead.