Exports of processed food from Bangladesh have slowed again, raising concern among industry leaders about the future of the sector. In the last fiscal year, the country’s total export earnings from agricultural products rose by only 2.52 percent, a drop from the previous year’s growth of 3.9 percent. While there was a slight increase in overall numbers, specific categories such as dry food, confectioneries, and beverages saw a noticeable decline. According to exporters, the biggest challenge has been new trade restrictions imposed by India, which has been a major destination for Bangladeshi processed food items. Since May, India has allowed import of processed food through only one land port—Bhomra—while closing other points of entry. As a result, exporters are now forced to reroute their consignments, increasing transportation time, cost, and complexity. Dry food exports dropped by over 14 percent, and sugar and confectionery items declined nearly 17 percent. Even beverage exports, which had shown potential, saw a dip of around 1.5 percent. Spices, another key product, faced a small decrease of about 1.2 percent. Exporters say that testing and inspection delays in India are further adding to the problem, as containers are held up for up to ten days for lab checks. Industry insiders warn that this slowdown may hurt the country’s plans to diversify its export base. While ready-made garments continue to dominate, processed food was seen as a growing sector with good potential in regional and global markets. Now, small and medium-sized businesses that had invested in this area are struggling to cope with rising costs and limited market access. Companies that export to Europe and the United States have managed to avoid some of the difficulties, but those relying on the Indian market are facing serious setbacks. Many fear that if the current situation continues, Bangladesh may not meet its target of 15 percent growth in processed food exports this year. Business leaders have urged the government to step in and resolve trade issues with India through diplomatic channels. They are also calling for better packaging facilities, cold storage infrastructure, and accredited laboratories to improve the competitiveness of Bangladeshi food products. Despite the slowdown, the sector still holds promise. With the right policy support and regional cooperation, processed food exports can recover and continue to contribute to a more balanced export portfolio for Bangladesh.
