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Agribusiness
The Delta of Agro-Investment Opportunities
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metric tons annual agri output
CAGR in agro-sector performance
packaged food market
items exported to 140+ countries
Strategically located at the heart of the Bengal Delta—the world’s largest—Bangladesh benefits from fertile alluvial soil, abundant freshwater, and a monsoon-driven agro-climate. These natural advantages enable year-round cultivation and high-yield farming across two harvest cycles.
Agriculture remains a key pillar of the national economy, contributing an average of 11.66% to GDP and employing 45.4% of the workforce. With an annual output exceeding 70 million metric tons, the sector plays a central role in both domestic food security and export competitiveness.
Recognized as a priority sector for export diversification, agriculture and food processing have demonstrated strong momentum. The industry has recorded a 13% compound annual growth rate, with processed food exports growing at 16.6% per annum. Bangladesh currently exports over 700 products to 140+ countries, supported by duty-free or preferential access to 52 markets, including the EU, GCC, and ASEAN regions.
Backed by policy incentives and private sector growth, the sector has evolved into a vibrant agribusiness ecosystem, with 1,000+ food processors and 250 exporters. However, with over 75% of agricultural produce still unprocessed, the potential for value addition remains significantly underutilized.
Priority investment areas include agro-processing and food manufacturing; sustainable cold chain and storage infrastructure; seed technology; climate-smart agriculture and climate-resilient crops; modern packaging, logistics, and contract farming; as well as digital agri-tech platforms, IoT-led precision farming, and traceability technologies.
Growth Drivers
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Cost-Effective Production Environment
Bangladesh also offers a highly cost-effective production environment, with greenhouse setup costs among the lowest in Asia (EUR 90–150/m²) and agro-labour costs ranging between USD 90–150 per month. Year-round cropping, and favorable agro-climatic conditions support low-cost and high-yield agriculture.
Expansive Market Opportunity
Expansive and growing domestic market, valued at USD 47.54 billion as of 2022. With a population exceeding 170 million and an emerging MAC of 34 million, demand for high-quality, processed, and branded food products is on the rise. The halal food segment, in particular, is growing at 8–10% annually, aligning Bangladesh with the rapidly expanding USD 2.4 trillion global halal market.
Expanding Export Markets
Agro-exports reached USD 1.03 billion in FY 24, including USD 341.73 million from processed food alone. In the first half of FY2025, agro-export earnings rose by 9.3% year-on-year, totaling USD 595.51 million, with projections to exceed USD 1 billion by year-end. The sector also benefits from duty-free or preferential access to 52 countries, including high-potential markets in the EU, GCC, and ASEAN regions.
Global Agro-Leader
Bangladesh ranks 2nd in the world for jute, goat milk, and jackfruit, and 3rd for rice and freshwater fish. It is also a major exporter of shrimp, frozen seafood, vegetables, dry food, and tobacco.
Rising Processed Food Demand
Bangladesh’s packaged food market is projected to grow at an impressive annual rate of 15.01% through 2027. This growth is driven by increasing demand for halal-certified, organic, and ready-to-eat products, both domestically and internationally.
KEY PLAYERS
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- Reduced Corporate Income Tax (CIT) for 5 to 10 years depending on location, for industrial undertakings engaged in processing of locally produced fruits and vegetables.
- Complete tax exemption on income from rice bran oil production up to 10 years.
- 20% special rebate on electricity consumption to agro-processing units.
- Tax exemption on royalties, technical know-how/ assistance-related fees (and their repatriation).
- Exemption of import duties on capital machineries.
- Full repatriation of profits & initial investment.
- 50% tax exemption for income derived from exports.
- No VAT imposition on export goods.
- 100% export subsidy/ cash incentive for exporters of locally processed agricultural products and 100% halal.
- Ministry of Agriculture (MoA)
- Bangladesh Agricultural Development Corporation (BADC)
- Bangladesh Food Safety Authority (BFSA)
- Bangladesh Export Promotion Bureau (BEPB)
- Department of Agricultural Extension (DAE)
- Bangladesh Halal Accreditation Board (BHAB)
- Bangladesh Agro-Processors' Association (BAPA)
- Bangladesh Standard and Testing Institute (BSTI)
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