Farm exports this fiscal year are expected to generate billion-dollar earnings once again

Bangladesh's agricultural exports in the first half of this fiscal year have shown a significant rebound, raising hopes of surpassing a billion-dollar turnover in the latter months of the year, according to insiders on Friday.

After a decline over the past couple of years, the export of the country's agricultural products experienced a remarkable performance during the July-December period of FY2025, an analysis by the Financial Express (FE) revealed.

During the first half of this fiscal year, exports of agricultural items such as vegetables, fruits, tea, spices, and tobacco grew by 9.31% compared to the same period in FY2024, according to data from the Export Promotion Bureau (EPB).

Bangladesh’s export earnings in H1 totaled $595.51 million, up from $544.77 million during the same period in FY2024. Fruits, tea, spices, tobacco, and animal and vegetable fats were the top earners in agricultural exports, the data shows.

Farmers, entrepreneurs, exporters, analysts, and policymakers are optimistic about the future of Bangladesh's agro-products, predicting the country could capture a significant share of the global $1.90 trillion agricultural market.

In 2022, the global agricultural export market (excluding fish) was valued at $1.903 trillion, a 2.9-fold increase since 2005, according to the United Nations FAO report. The United States remains the largest exporter of farm and food products, with a total value of nearly $175 billion, although this figure represents a slower growth of 11% from 2022, according to the USFDA report.

Bangladesh’s agricultural exports first crossed the billion-dollar mark in FY2021 and FY2022, but dropped below that threshold in FY2023 and FY2024. In FY2021, export earnings were $1.028 billion, and in FY2022 they rose to $1.162 billion. However, earnings fell to $834.03 million in FY2023 and $964.34 million in FY2024.

The H1 performance of FY2025 has rekindled optimism, with $595.51 million in earnings already secured. Market insiders are hopeful that Bangladesh’s agricultural exports will return to the billion-dollar range in the current fiscal year.

This resurgence in agricultural exports is seen as a positive development for diversifying Bangladesh's export basket, which has long been heavily reliant on ready-made garments (RMG). The RMG sector has been the country’s largest export earner for over three decades, contributing around 80% of total export earnings.

The positive trend in agro-product exports is seen as a step toward reducing reliance on a single export category, analysts say.

According to EPB data, while the export of some key agricultural items, such as vegetables, declined in H1 this fiscal, other products such as dry food ($110.93 million), tobacco ($178.47 million), spices ($29.82 million), animal and vegetable fats and oils ($96.17 million), and beverages, spirits, and vinegar ($15.43 million) performed strongly.

Khurshid Ahmad Farhad, General Manager of Bombay Sweets & Company Ltd, believes that agro-product exports will continue to grow in the coming years as many medium and large companies in Bangladesh are expanding their overseas markets. Agro-processing industries are flourishing and hold great potential, he noted.

Farhad highlighted two key factors contributing to the growth of agricultural exports: first, large conglomerates are aggressively pushing their products in overseas markets; second, the growing number of Bangladeshi diasporas in various countries is boosting demand for these products.

Farhad added that his company is expanding its capacity and diversifying products to target both local and international markets. He expressed optimism that the export volume will see a significant boost in the coming years.

Major companies like Pran-RFL Group, Square Group, Olympic, Bombay Sweets, Acme, and Akij Group are actively involved in agricultural exports.

PRAN-RFL Group, the largest exporter of agro-processed products, has announced plans to double its export earnings to $1 billion by 2025 and reach $2 billion by 2030, driven by a diversified product range and expanding markets. The company’s export activities began in 1997 with shipments of pineapples to France and reached $532 million in FY2021-22.

Dr. Mohammad Abdur Razzaque, Chairman of RAPID, emphasized that Bangladesh has immense potential in the global agro-product market. He suggested that improving product quality, obtaining international certifications, and targeting global customers rather than just Bangladeshi diasporas would lead to significant growth in exports. Dr. Razzaque also proposed that Bangladeshi entrepreneurs could engage in contract farming abroad to further expand agro-product shipments and earnings.

Dr. KG Moazzem, Research Director at the Centre for Policy Dialogue (CPD), welcomed the rebound in agricultural exports, noting that Bangladesh has now found billion-dollar export products after a long drought. He emphasized that as more Bangladeshi-made products establish strong brands in overseas markets, exports will continue to grow. To further expand, local companies should improve their capacity to meet international standards and obtain certifications, especially targeting the US and EU markets.

The majority of Bangladesh’s agricultural exports currently go to the Middle East, as well as some Asian, African, and South Asian countries.