For lack of processing, fruit worth about Tk 25,000 to 50,000 crore is wasted in the country every year. To reduce the loss, experts have called for equal emphasis on quick marketing, modern processing and exports, and for effective coordination among agriculture-related institutions.

In their view, the fruit processing industry is going through a hard time because of weak market creation and exploration of new markets, reduced export incentives, rising production costs, high-interest loans and higher raw material prices. Developing the sector needs coordinated initiatives by government, industry and academia, as well as integrated research on the entire fruit export supply chain.

Speakers made these points at a roundtable titled "Fruit Processing: Problems and Prospects" organised by Jagonews24 on Saturday, 27 June, at its office in Badda, Dhaka. Jagonews24 editor K M Ziaul Haque presided over and moderated the discussion.

Speakers included Dr Jahangir Alam Khan, former vice-chancellor of the University of Global Village, researcher and agricultural economist; Dr Md Golam Ferdous Chowdhury, chief scientific officer of the post-harvest technology division of the Bangladesh Agricultural Research Institute (BARI); Dr Md Mehedi Masud, fruit expert and former project director of the Year-round Fruit Production Project; Mohammad Arifur Rahman, director of the Department of Agricultural Extension's exportable mango production project; Enamul Haque, deputy director (food and agriculture) of BSTI; Eliash Mridha, managing director of PRAN Group; Md Abul Hashem, managing director of Hashem Foods Ltd; Md Iktadul Haque, former general secretary of the Bangladesh Agro-Processors' Association (BAPA); S M Nazer Hossain of the Consumers Association of Bangladesh (CAB); Md Mahatab Ali, executive director of Kaju and Coffee Agro; Chapainawabganj agricultural entrepreneur Ismail Khan Shamim; and Naogaon agricultural entrepreneur Sohel Rana.

Agricultural economist Dr Jahangir Alam Khan said that although fruit production is rising, huge amounts are wasted in season. To reduce the loss, equal emphasis must be given to quick marketing, processing and exports. Sustainable development of the fruit processing industry is impossible without higher budget allocations for agriculture and horticulture, he said.

He said 25 to 30 per cent of fruit, and in many cases up to 40 per cent, is wasted after sale. If the government gave even relatively small investment or subsidy to the processing industry, fruit worth thousands of crores of taka could be saved.

Dr Md Golam Ferdous Chowdhury of BARI said the potential of the fruit processing industry cannot be fully used because of a lack of effective coordination between research institutions, the Department of Agricultural Extension, the Department of Agricultural Marketing and entrepreneurs. The two biggest challenges, he said, are creating and exploring markets. There is not enough research on which products are in demand in which countries and what can be exported, so exports still depend on personal contacts.

Fruit expert Dr Mehedi Masud said: "One report says fruit worth about Tk 2,000 crore is wasted a year, but in reality the loss is much greater. If the average price of fruit is taken as Tk 50 a kg and about 50 lakh tonnes are wasted, the loss is at least Tk 25,000 crore. At Tk 100 a kg, it reaches about Tk 50,000 crore."

Mohammad Arifur Rahman, director of the DAE's exportable mango production project, said a shortage of cargo space is one of the biggest barriers to fruit exports. In season, exporters cannot get the cargo space they need even when willing to pay extra, so goods often cannot be sent on time despite demand abroad. A dedicated cargo allocation must be ensured for exporters in the peak season, he said.

Enamul Haque, deputy director (food and agriculture) of BSTI, said that to realise the potential of fruit processing, not just production but international standards and compliance for each export destination must be ensured. BSTI provides food safety management system services and certification for dried fruit, pickles, chutneys, juices and other products, he said. With online services, entrepreneurs no longer need to visit the office; applications and other steps can be completed from home, which has increased transparency and greatly reduced red tape.

PRAN Group managing director Eliash Mridha said the development of fruit processing needs coordinated action by government, industry and academia, and stressed modern technology, research, quality infrastructure and international trade facilities. The industry's journey was full of challenges, he said. PRAN Group first began producing pineapple candy, but with no sanitary can industry in the country it was hard to compete. Importing cans to produce and export raised costs and reduced competitiveness in international markets.

A shortage of cold storage is also causing problems in preserving mango pulp, he said. Potato cold stores are being used, which is not a long-term solution, so specialised cold storage must be built for the food processing industry.

Md Abul Hashem, managing director of Hashem Foods Ltd, said the fruit processing industry is going through a hard time because of reduced export incentives, higher production costs, high-interest loans and rising raw material costs. Without policy support and competitive incentives, Bangladesh's position in international markets will weaken further. The cost of producing and exporting mango juice is so high that it has become hard to compete internationally, he said; the export incentive used to be 20 per cent but has been cut to 10 per cent.

Md Iktadul Haque, former general secretary of BAPA, said the agro-processing sector has huge potential for foreign currency earnings but cannot move at the desired pace because of a lack of cold storage, difficulty getting bank loans, infrastructure limits in ensuring international standards and regulatory complexity involving many agencies. He called for removing these barriers, introducing a "single door service" and creating a supportive environment for small and medium entrepreneurs.

S M Nazer Hossain of CAB said that although quality fruit and food products are made in the country, lack of proper promotion, weak consumer awareness and poor coordination between farmers and scientists mean local products cannot reach their full potential. Effective coordination among government, scientists, farmers and consumers is needed for food security, safe food and the growth of fruit processing, he said.

Md Mahatab Ali, executive director of Kaju and Coffee Agro, said research shows cashew fruit has many nutritional benefits. Stored in Tetra Paks using modern UHT technology, 100 per cent natural juice can be marketed without any preservatives or added sugar.

Chapainawabganj agricultural entrepreneur Ismail Khan Shamim said 10 to 12 kg of mangoes are needed to produce 1 kg of good-quality dried mango in Bangladesh, whereas many Thai products are made at comparatively lower cost. Local entrepreneurs are also at a big disadvantage competing with foreign products smuggled in or brought in by evading duty. To build a strong market like Thailand's, the small and medium enterprise (SME) sector must be involved, he said.

Naogaon agricultural entrepreneur Sohel Rana said huge amounts of mangoes are wasted because there is no storage, modern processing technology, better packaging or easy certification. If these were ensured, local entrepreneurs could take a large share of the international market for processed mango products. On e-commerce platforms such as Alibaba and Amazon, amsotto (mango leather), mango bars, mango powder and other processed products from India and the Philippines are being sold, and Bangladesh also has the capacity to produce quality products, he said.

Other important issues for the sector were also discussed at the roundtable, and a detailed report on them was due to be published on Monday, 29 June.

Source: Jagonews24. First published in Bengali on The Agro News.