Over 2yrs gone, country's 1st food processing estate project still stalled

The project to establish the country's first food processing estate in Thakurgaon has seen no visible progress since its initiation over two-and-a-half years ago and is now seeking another two years with an 18% increase in cost. 

Officials involved with the project said delays occurred right from the start due to the late appointment of a project director and a delay in the approval process for land acquisition.

The project, titled "BSCIC Food Processing Industrial Estate," was initially announced during the prime minister's visit to Thakurgaon in March 2018, aiming to increase the trade of agricultural products through fair pricing and diversification of farmers' produce. 

The project got approval in July 2021 with an initial cost estimate of Tk98 crore and a deadline set for June this year. 

The Ministry of Industries instructed the Bangladesh Small and Cottage Industries Corporation (BSCIC) to carry out the project on 50 acres of land in Sadar Upazila. 

BSCIC officials said Thakurgaon was chosen because the northern region yields abundant vegetables like potatoes. By transforming Thakurgaon into an industrial hub for food processing, facilities will be set up to manufacture various products such as potato chips, tomato sauce, mango and litchi juice, and more. 

Now, with the deadline fast approaching, a new Development Project Proforma (DPP) has been sent to the planning commission seeking a deadline extension until June 2026 and a cost hike to Tk116 crore. 

According to project officials, the work was supposed to start in July 2021, but it was delayed by nine months. The recruitment of the project director took place in May 2022. 

Immediately after the director joined, a letter was sent to the Deputy Commissioner (DC) for land acquisition. It was then forwarded to the land ministry in November 2022 for final approval, which came only in July 2023. 

The officials said these approval processes have caused delays in the project's progress. 

Project Director Md Hafizur Rahman said the DPP has been updated to reflect the final cost of land acquisition. Besides, the revision was necessary due to new policies in public works.

"As a specialised industrial city, entrepreneurs involved in food processing will be able to acquire plots in the estate," he added. 

The BSCIC expected $5 billion in new investments in the food processing estate by 2025. It was expected to employ one lakh people overall and 25,000 jobs in Thakurgaon. After completion, there will be 251 plots available in the estate. Women entrepreneurs will get 25 plots.

Why Thakurgaon

Agriculture contributes 13.6% to GDP in Bangladesh and employs 40.62% of the labour force, according to the Industries Ministry. 

The agro-food processing industry, which makes up 8% of Bangladesh's manufacturing sector, holds promise for substantial growth. 

The BSCIC, in project documents, said agriculture is the primary livelihood for residents in 16 northern districts, meeting half of the nation's food demand and supplying 70% of raw materials for agricultural industries. 

These districts yield large quantities of potatoes, tomatoes, onions, garlic, mangoes, bananas, litchis, jackfruits, vegetables, fruits, and rice. 

However, without food processing industries, farmers struggle to get fair prices for their produce, leading to significant wastage and affecting consumers. 

Despite having 105 industrial plots in a previously established industrial city by BSCIC in the eighties, Thakurgaon lacks sufficient infrastructure to support its agriculture-focused economy, the BSCIC said. 

Rezaul Pradhan, member of Thakurgaon Chamber of Commerce and Industry, said there is an absence of major factories in the region despite having untapped potential in agriculture due to the area's conducive soil and climate. 

"Developing a food processing industrial city in Thakurgaon would not only benefit the northern regions but also the entire country," he added.

In Thakurgaon, the mozzarella cheese industry is thriving with women leading the way. 

Masuma Khanam, a housewife from Nischintapur area of Thakurgaon, runs a cheese production factory on rented space. Khanam said she urgently needs plots in the food processing industrial area to expand her operations.

Nagina Najnin Banu, another cheese entrepreneur in Thakurgaon and owner of Eminent Agro Industries, said she too urgently needs land for her business and has already applied for a plot in the industrial estate through BSCIC.