Bangladesh's pesticide industry is facing a double setback as tariff discrimination continues to favor imports while local manufacturers remain largely absent from key policy discussions that shape the future of the sector.
The latest example emerged from the 90th Special Meeting of the Pesticide Technical Advisory Committee (PTAC), held on 4 June 2026, where important pesticide-related issues were discussed without the participation of representatives from the Bangladesh Agrochemical Manufacturers Association (BAMA). Industry leaders say the incident reflects a broader pattern in which domestic producers are expected to compete in the market but are given little opportunity to contribute to decisions affecting the industry.
According to BAMA President KSM Mostafizur Rahman, the association formally applied to the Ministry of Agriculture seeking permission for its President and General Secretary to attend the PTAC meeting and present the views of local manufacturers.
The application argued that domestic producers are directly involved in investment, technology transfer, quality control, employment generation and export development, making their participation essential in discussions on pesticide policy and regulation.
However, Rahman alleged that the approval letter reached the association only after the meeting had already taken place. As a result, BAMA representatives could not attend or contribute to discussions despite having requested participation well in advance. For many in the industry, the missed opportunity has become a symbol of the disconnect between policymakers and manufacturers who are trying to build a domestic production base.
The concern comes at a time when local pesticide producers say they are already struggling against an unequal tariff structure. While finished pesticide products imported from countries such as India and China enter Bangladesh with only a 5 per cent customs duty, importing raw materials for local production attracts a combined tax burden of around 58 per cent.
Industry leaders also point to an additional 15 per cent VAT on certain imported raw materials, a cost that further increases production expenses for local manufacturers.
The result is a market where importing finished products is often cheaper and easier than producing them inside the country.
The manufacturers say importers can source products from multiple international suppliers with greater flexibility, while local manufacturers face restrictions and higher compliance costs when importing raw materials needed for production.
Rahman said the situation is particularly frustrating because Bangladesh has already demonstrated what supportive policies can achieve. The pharmaceutical industry was once heavily dependent on imports, yet government support helped it grow into a major manufacturing sector that now exports medicines to more than 160 countries. He believes the pesticide industry could follow a similar path if tariff barriers were removed and local producers were given a meaningful role in policymaking.
Industry representatives further point out that an inter-ministerial meeting recently recommended reducing or eliminating tariffs on pesticide raw materials, recognizing the need to strengthen local production. However, they say the recommendation has not yet been implemented, leaving manufacturers trapped between high production costs and intense competition from imported products.
The sector insiders argue that such policies discourage domestic investment and industrial expansion. When raw materials are taxed heavily while finished goods receive easier access to the market, businesses naturally shift toward importing rather than manufacturing.
