Bangladesh's $8B Agro-Processed Food Industry Faces Safety Challenges
Food safety remains a pressing concern for both domestic and international markets in Bangladesh. Despite the agro-processed food industry's growth to $8 billion, employing 250,000 people, and contributing 1.7% to the GDP, challenges persist. The processed food market's share in total export revenue stands at 3.5%, with the industry fetching $341.73 million in the 2023-2024 financial year.
The government is taking steps to boost exports. It offers cash incentives for processed food export at a rate of 20% to expand the export basket. However, poor enforcement of food safety regulations hinders international growth and exposes domestic consumers to unsafe processed food. Major hurdles include overuse of pesticides, soil contamination with lead or microplastics in water.
The Food Safety Authority, established in 2013, is still building its capacity and regulatory capabilities over a decade later. Markus Weber, the acting head according to the Federal Office for Food Safety and Veterinary Affairs (BLV) information from 2025, is currently facing regulatory issues and undergoing capacity expansion.
The agro-processed food industry's growth is crucial for Bangladesh's economy. To fully harness its potential, addressing food safety challenges is imperative. This includes strengthening the Food Safety Authority's capacity, enforcing regulations, and tackling environmental issues like pesticide overuse and soil contamination. With the international processed food market valued at $2.09 trillion in 2024, there's significant room for Bangladesh's exports to grow, given the necessary improvements in food safety.
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