Fruits and Vegetables

Bangladesh is self-sufficient in local fruits and vegetables production with a production volume of 5.55 million metric tons per annum with an export of USD 119.3 million and 15.7 million metric tons per annum with an export of USD 118.73 million, respectively. The main export destination of fruits and vegetables are middle eastern countries, Singapore, and ethnic markets of European countries like Italy, United Kingdom, and the United States of America. The government of Bangladesh incentivize 5-10 years of tax holidays/exemptions on investment and cash incentives on export along with bonded warehouse facility.

Bangladesh proposes investment on three distinct types of cold storage for fruits and vegetables, they are community scale, medium scale and large-scale industry. At community level, 1000 multipurpose solar-grid mini-cold storages each 10-ton capacity with reefer vans for transportation require an investment of USD 90 million with an estimated IRR of 14.47%. At medium scale, 300 units each 1,000 metric tons capacity with reefer vans for transportation require an investment of USD 250 million with an estimated IRR of 20%. At large-scale industrial level, 10 units each 10,000 metric tons capacity fruit processing plants require an investment of USD 49 million with an estimated IRRs of 20% for pulp and 60% for juice. All three investments are to be implemented through public-private-partnership mode. In addition, about USD 12 million investment is needed for capacity building and market development.

Potato and Onion Seed

A large portion of potato and onion seed is imported every year that requires significant amounts of foreign currency. To reduce the import dependency, the government of Bangladesh plans to produce these seeds locally and store them for the next crop. There are limited cold storage facility for potato seed storage in Bangladesh, however no onion seed (bulb) storage is available in the country. Potato production per year is about 10.4 million metric tons that demands potato seed about 0.77 million tons per year. On the other hand, onion production is about 3.3 million metric tons per year with an onion seed (bulb) demand of 13,000 metric tons. The government of Bangladesh provides 5-10 years tax holidays/exemptions on investment and cash incentives on export. All produced seeds to be marketed domestically.

The government of Bangladesh proposes investment on establishing 200 units of potato seed cold storage each 6000 metric tons capacity with an investment of USD 228 million and IRR of 15% that will increase potato seed and potato storage by 25%. In establishing 5 units of onion seed (bulb) storage, each 2000 metric tons capacity needs an investment of USD 3.5 million, and the estimated IRR is about 18%. The investments are to be implemented through public-private-partnership mode. In addition, about USD 10 million investment is needed for capacity building and market development.

Flower and Ornamental

Commercial production of flowers and ornamental plants in Bangladesh is growing at a rate of10-15% annually with increased domestic demand and potential for export. The annual turnover of cut flower market is estimated to be about USD 165 million. However, the availability of tissue culture laboratories, greenhouse for production and storage infrastructure are still very limited.

The Bangladesh investment proposal includes establishing 14 tissue culture laboratories with greenhouses and other infrastructure in 14 zones of the Department of Agriculture Extension with an investment of USD 28.9 million and an estimated IRR of 20%. The proposal also includes establishing 6 temperature-controlled storage facilities for flowers with reefer vans for transportation with an estimated IRR of 16%. The investments are to be implemented through public-private-partnership mode. In addition, about USD 11.37 million investment is needed for capacity building and market development.

Agricultural Mechnisation

Agricultural mechanization plays an important role in transforming Bangladesh agriculture to be efficient and productive. In the last two decades, there have been significant improvements in mechanizing crop production activities like land preparation, irrigation, harvesting and threshing. Both imported and locally produced machines and spare parts played a significant role in this uplifting. The current annual market size of agricultural machinery is about USD 1.72 billion of which 28% is locally made, and the spare parts market size is about USD 307.9 million of which 77% is locally made. However, the local manufacturing of agricultural machines and spare parts are facing challenges of testing and standardization certification, and a few sophisticated and costly production facilities like specialized metal treatments are absent in most of the local manufacturing units that limit their development. The government of Bangladesh intends to invest in these areas to boosts local manufacturing sub-sector not only to ensure local supply but to export in developing countries in the world. Irrigation of crops in Bangladesh is quite mechanized with mechanical and electrical machines, however lacking climate smart modern irrigation technologies for significant improvement in irrigation efficiencies, costs and reduction of greenhouse gas emissions. Promoting solar powered, IoT and sensor-based drip, sprinkler and alternative wetting and drying (AWD) applications may bring appropriate solutions for Bangladesh situation.

The government of Bangladesh proposes public sector investment of USD 45 million on establishment of an agricultural machinery testing and training institute (ATTI) in major machinery manufacturing hub along with an additional investment of USD 5 million in capacity building, quality control and branding. The estimated IRR of the investments is 14%. The government intends to public sector investment of USD 17.4 million on establishing two common facility centers in two major agricultural machinery manufacturing hubs with an estimated IRR of 19%.

There are about 1.7 million irrigation pump units operating in Bangladesh agriculture of which about 1.5 million are shallow tube well (STW) and low lift pumps (LLP) operating by diesel engine with capacities ranging from 4-6 hp, a major share of such pumps may be converted into solar powered, IoT and sensor-based system including establishment of such new irrigation pumps. This proposition includes establishing of 30,000 new solar powered, IoT and sensor-based irrigation pumps with an investment of USD 187.5 million to be implemented public sector initiatives. Another 50,000 units of such irrigation system with an investment of USD 93.75 million to be installed at 30% cost sharing from the public sector, rest of investment would be from private sector initiative. In addition to this, the government intends to create a financing scheme for 20,000 units of such irrigation systems with an investment of USD 125 million. The government also intends to invest USD 0.5 million for capacity building of farmers. The IRR of investments is estimated as 16.3%.