The New Nation - Internet Edition

Staff Reporter

A World Bank and IFC-SEDF study revealed that Bangladesh has the vast opportunities to attain comprehensive development by increasing support to high-value agriculture and agro-business.

The study titled "High-value agriculture in Bangladesh: An assessment of Agro-business Opportunities and Constraints" said the growing demand for high-value agricultural commodities can provide significant opportunities for greater rural employment and incomes.

The report identified climate change and increasing fuel price as the main concerns.

Demand for high-value agricultural commodities including fruits, vegetables, spices, fish and livestock products are increasing everyday. Bangladesh can utilise the growing demand of such products, the study said.

It found that Bangladesh would need an additional 6.5 million metric tons of vegetables, 0.7 million tons of spices, 1.6 million tons of fruits, 1.9 million tons of fish, 1.4 million tons of meat and eggs, and 2.6 million tons of dairy products by 2020 to meet domestic demand. The study also said in 2005 prices, this additional demand is valued at about US$ 8 billion and represents a farm-gate value of approximately US$ 5 billion.

The report was presented as part of launching of World Development Report 2008 at a city hotel on Sunday.

Mona Sur, senior economist of the World Bank and Zaki Uz Zaman, associate operations officer of IFC-SEDF presented the main features of the report at the function with Mohamed Toure, acting country director of World Bank in the chair.

Moshiur Rahman, president of World Poultry Science Association, Dr Sattar Mandal of Bangladesh Agriculture University, Dr Alain de Janvry, co-director of the development report and Fakhrul Ahsan, joint chief (planning) of Agriculture Ministry were, among others, who spoke at the function.

The launching ceremony was followed by a panel discussion on 'Strengthening Support for High-value Agriculture and Agro-Business in Bangladesh'.

The report said sustained economic growth, rising incomes, and rapid urbanisation, have resulted in widespread shifts of food habit. The consumers are buying more high-value foods such as fish, meat, fruit, vegetables and processed products.

Talking to reporters on the sideline of the function Dr Sattar Mandal said huge demands have created in the global and domestic market for the agricultural commodities and agro-business that paved the way for the country's rapid development.

"Now the government will have to create environment for private investment in the agricultural sector," he added.

The report observed that in the absence of well-functioning marketing systems, the cost and quality of many high-value products may not be competitive when compared to imported ones.

It said a strategic approach is needed to take advantage of the opportunities. Efforts need to be focused on commodities with rapidly growing demand and commodities, which Bangladesh can produce competitively.

WB country director Xian Zhu in a statement observed that high-value agricultural products tend to be highly perishable and there are many risks associated with marketing these commodities.

"Appropriate policies for investments in key infrastructure are needed to make it viable for farmers to switch to these commodities and increase production." said the World Bank official.