Necessities/Need of Agribusiness in Bangladesh
Agriculture’s share of GDP and employment is still very large in the country
• As income and population rises in the country, there is a growing need for more food and agricultural products in the country
• Further, Bangladesh possesses a deficit in the trade balance in the context of its global business. In the twenty-first century, there is a wide scope to mitigate this deficit through improved and expanded agribusiness operations.
• In response, some commercially oriented agribusiness is taking hold in the country over the years to meet the growing home demand for agricultural products. Although Bangladesh is still a low-income developing country, fortunately, the primitive characteristics of LDCS do not exist here. However, agricultural productivity is still very low and there is ample room for technological improvements that can boost productivity in this sector Besides, the country is still lagging behind to undertake appropriate measures for the agricultural sector, which should be complementary with WTO and other international standards and requirements. Such Strategic management of agribusiness is required so that core competencies can be crackled and proper supply chain management along with vertical and horizontal integration is
• Agribusiness may have a brighter future in Bangladesh if the country can avail of the opportunity and overcome the shortcomings.
• Diversification of the agribusiness is required.
• Further, global warming and ecological imbalances created a need for environment-friendly management of agribusiness.
• The Green revolution was initiated during the sixties to maximize the benefit of agricultural output.
The impact of that revolution has now faded and now we agribusiness revolution iced to be ushered in.
• BADC (Bangladesh Agricultural Development Corporation) worked hard to develop the agricultural sector. But it became crippled due to poor governance, lack of political will and rampant corruption
• Now there is realization and more emphasis on the private and public partnership to improve this sector.
•It is critical to take steps to improve technology and increase productivity. Without raising productivity, supply cannot be increased and rising demand cannot be fulfilled.
• Reduction of the subsidies on fertilizer and also the approval of private trade in fertilizers, small irrigation equipment, and seed sectors were done during different phases of the economy. These may help improve efficiency in the distribution of these key agricultural inputs
• But as these private initiatives develop, there is a concern for creating a disparity between having and have-nots. As the private disbursement system of agricultural inputs is monopolistic in nature, so it puts small and marginal farmers in a disadvantageous situation. Structural adjustments started with the liberalization processes and openness of the economy may also help improve this sector.
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