Trend of Agro Products in Bangladesh

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Preface:
As a part of the educational program in post Graduate Diploma in Industrial Management at Bangladesh institute of Management we have had to present an assignment under the course of Managerial Economics. In this context we have created a group named as Padma consisting three members and choose the subject on Business trend of Agro based processed food in Bangladesh. We have chosen the topic since the country like Bangladesh highly populated in nature faces the biggest challenge as feeding the people. On the other hand agro food processing sector helps most in the direct and indirect employment generation in rural area. To prepare this paper we have taken help from the world Banks study on Bangladesh development series paper 21, ILO report on Skills for trade and economic diversification in Bangladesh 2011 and Bangladesh Bureau of Statistics. We express our gratitude to the authors and publishers of those studies and book. Md. Golam Morshed,

Md. Zakir Hossain,
Md. Moniruzzaman.

Executive Summary:
Bangladesh’s economy has grown well in last two decades. Real Growth was about 5 percent in 1990s, and 5.8 percent in the first decade of twenty First Century. The Government’s vision 21 envisages that growth will accelerate, reaching 10 percent in 2021. According to the industrial survey data from the Bangladesh Bureau of Statistics, the agro-food sector contributed 4.7% of GDP and 1.1% of total employment in 2005/06. According to the World Bank report on High Value Agriculture in Bangladesh in 2008, Bangladesh development Series paper no. 21 there were 6,139 companies operating in the agro food processing sector. Over 90% of these firms were found to be small (<50 employees). It shows that around two third of the agro-food firms are located in the rural areas and roughly 70% of the rural jobs are related to the food processing. The major processing firms engaged in the three major areas as Milling: Rice, pulse etc. Grinding: Flour, Spices etc. and Processing: transformation. the food manufacturing industry have a quantum index of industrial production in 2009-10 period at 193.0 which was 157.24 in 2003-04 based on the production in 1988-89 production. The contribution of food manufacturing sector to the GDP is Tk. 144,104 Mln. in 2009-10 which was Tk. 76,615 mln in 2004-05 and 54,118 in 2001-02. Though the investment climate in Bangladesh is still not attractive enough but there are a lot of opportunities like population, urbanization and increasing income and education the sector poses minimum risk and high potential. But we still need to improve the supply chain and operational efficiency along with adoption of advance technologies with improved business environment for excellence of the sector.

1. Introduction:
Bangladesh’s economy has grown well in last two decades. Real Growth was about 5 percent in 1990s, and 5.8 percent in the first decade of twenty First Century. The Government’s vision 21 envisages that growth will accelerate, reaching 10 percent in 2021. The poverty rate has fallen significantly, reaching 31.5% in 2010 and according to the government’s five year plan projection it will fall sharp to 22% by 2015 based on more inclusive growth. Rapid Export growth –albeit from a low base – has contributed significantly to Bangladesh’s achievements. Fortunately Bangladesh’s export dynamism is not confined to the ready -made Garments. Leather goods, Ship Building, Pharmaceuticals and parts of the agro-food sector are among the manufacturing sectors that are performing well. The agro-food sector processes raw materials produced by Bangladesh’s farming. The sector is primarily domestically focused but has significant exports in spices and in ethnic foods of Bangladesh. Only a small fraction of food products produced in Bangladesh are exported while most are sold in domestic markets. Only a few typically large companies in the sector are engaged in exporting. According to the industrial survey data...
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