Agrochemical producers seek 3 key policy supports for self-sufficiency, export growth

Agrochemical producers in Bangladesh have urged the government to provide three key policy supports to achieve self-sufficiency in production and tap into export markets.

These include lifting restrictions on sourcing raw materials, withdrawing import duties on auxiliary chemicals, and offering low-interest loans and export incentives by classifying the sector as a priority industry.

At a workshop titled "Challenges Facing Domestic Agro-Chemical Producers in Reducing Agricultural Input Costs", held today (31 May) at the BRAC Inn Centre in the capital, stakeholders also emphasised the need to formulate policies that prioritise local pesticide producers — similar to the pharmaceutical industry — in order to make the country's agriculture sector sustainable.

During the event, KSM Mostafizur Rahman, president of the Bangladesh Agrochemical Manufacturers Association (Bama), criticised the Pesticide Technical Advisory Committee's "single-country, single-source" regulation for importing pesticide raw materials.

He said this policy, influenced by multinational companies, prevents local firms from importing cheaper raw materials from competitive sources, thus giving an undue advantage to foreign players.

"Multinational companies import raw materials from their own factories at higher prices. But local companies are not allowed to source more affordable alternatives from other countries due to this rigid policy," Mostafizur said.

"To make matters worse, 'rules of origin' have been added to the regulations in violation of existing laws, meaning domestic producers must undergo a field trial and wait at least five years to import from alternative sources," he added.

Mostafizur demanded that, like the pharmaceutical industry, the agrochemical sector be allowed open sourcing of raw and auxiliary chemicals, duty-free imports, and access to low-interest financing.

With these facilities, he believes Bangladesh could not only meet domestic demand but also begin exporting to Asia, Africa, and Central America within three years.

Presenting the keynote paper, Professor Abdul Karim of Gazipur Agricultural University identified several critical challenges which include complexities from the single-source policy, lack of raw material production guidelines, monopolisation of patented products, and difficulties in clearing raw materials at ports.

He recommended abolishing the single-source regulation, implementing patent laws and compulsory licensing, restructuring the Pesticide Technical Advisory Committee (PTAC), and removing the need for NOCs (no objection certificates) for raw material imports.

Bangladesh Association of Pharmaceutical Industries General Secretary Md Zakir Hossain and Joint Secretary of the Ministry of Commerce Nahid Afroz also spoke at the workshop.

According to traders, the current size of the agrochemical market in the country is approximately Tk7,500 crore. Seven multinational companies and local traders control over 90% of the market, while only 17 local producers control just 6%.