Experts call for increased subsidies for agro-processing to boost exports

Increased subsidies for the processing and preservation of agricultural products are essential to boost exports, experts said at a seminar in Dhaka today (3 May).

They also recommended tax exemptions and rebates in the upcoming national budget for technology transfer and machinery imports in the agricultural processing sector.

Professor Md Mijanur Rahman of Manarat International University made the remarks while presenting the keynote paper at a seminar titled "Budget 2025-26 for Agriculture: Outline of Sustainable Growth", organised by the Bangladesh Agricultural Economists Association (BAEA) at the Bangladesh Agricultural Research Council auditorium.

Anisuzzaman Chowdhury, special assistant to Chief Adviser Muhammad Yunus, attended the event as the chief guest.

"Farmers directly benefit from agricultural processing industries. Currently, 40–45% of crops are wasted after harvest due to poor market management and lack of proper processing and storage," said Professor Mijanur Rahman.

He stressed the need for region-based special processing zones focused on products such as dried vegetables, fried fish, dairy items, and fruit juices.

He cited Vietnam's 20% subsidy on agricultural processing, which he said had helped the country increase exports by 2.5 times over the past decade. In comparison, Bangladesh currently offers a 10% cash incentive, down from a previous 20%.

Calling for stronger preservation infrastructure, he said, "Cold storage facilities need to be developed in districts and upazilas through public-private partnerships. A tracking system must be introduced to monitor transport from farms to markets. Blast freezing technology should be adopted to preserve perishable seasonal produce like tomatoes, onions, mangoes, and lychees."

Anisuzzaman stressed that while subsidies are currently needed, more focus should be placed on research and development in the long term.

"Agriculture is vital for Bangladesh's graduation from LDC status. We must know the conditions of marginal farmers and ensure fair wages for agricultural labourers."

He added, "To keep food prices stable and maintain food security, we must modernise agriculture. The contribution of women workers must also be recognised, as agriculture remains the backbone of our national economy."

BAEA President Md Ahsanuzzaman Lintu said farmers' children were increasingly unwilling to pursue agriculture.

"Mechanisation must be fast-tracked. Labour shortages during harvesting seasons and the rising cost of produce beyond the farm gate point to an urgent need for improved storage at the farm level," he said.

He also criticised the difficulty farmers face in securing loans. 

"Thousands of crores have been looted from banks, but farmers still struggle to get loans. There should be systems allowing them to borrow at the time of harvest so they do not have to sell at low prices due to financial pressure."