Pesticide Manufacturers Urge Policy Changes to Boost Local Production

 
Pesticides are an integral part of crop protection and agricultural production in Bangladesh. Farmers use them to control weeds, insects and pests and boost crop yields. According to government data, Bangladesh imports around 40,000�"45,000 tonnes of pesticides annually.

Although there is scope to produce these agrochemicals domestically, the sector has failed to grow due to barriers allegedly created by importers and market syndicates. As a result, the country’s pesticide industry remains heavily dependent on imports.

Importers are also allegedly violating rules and regulations while bringing pesticides into the country. The import of substandard products is reportedly causing recurring losses to farmers. Industry insiders say removing barriers to local production and strengthening quality control could reduce import dependence and ensure better-quality pesticides.

A major concern is the “single country, single source” policy for importing pesticide raw materials, which local manufacturers say has restricted competition and violated existing laws.

The policy prevents producers from sourcing raw materials from alternative suppliers at competitive prices.

Agricultural economist and former Director General of the Bangladesh Livestock Research Institute Jahangir Alam said Bangladesh had been importing pesticides for decades, resulting in a substantial outflow of foreign currency.

“Bangladesh still does not have sufficient pesticide production capacity, so imports cannot be avoided at present. But if the domestic pesticide industry develops, import dependence could be reduced. The barriers to this sector need to be removed,” he said.

Meanwhile, local manufacturers say they are facing various obstacles from importers. The Bangladesh Agrochemicals Manufacturing Association (BAMA) representing domestic pesticide manufacturers, has alleged that the Bangladesh Crop Protection Association (BCPA), representing importers, has repeatedly sought cancellation of BAMA’s trade organisation licence.

BAMA President KSM Mostafizur Rahman said the move was “illegal and unethical”. He said four hearings had already been held at the Ministry of Commerce and that each time it was observed that import and manufacturing were separate and conflicting businesses, leaving no legal basis to cancel the manufacturers’ organisation’s licence.

He alleged that importers were attempting to prevent the growth of domestic pesticide manufacturing to protect their own business interests.

“Thousands of tonnes of pesticides are imported every year, sending huge amounts of money abroad and strengthening multinational companies. We established local manufacturing facilities to provide farmers with quality and adulteration-free pesticides, but importers are creating obstacles,” he said.

Asked about the application seeking cancellation of BAMA’s trade licence, Commerce Secretary Md Ataur Rahman Khan said no decision had yet been taken.

“An application has been submitted. The matter is under review. A decision may be taken after discussions or hearings with both sides,” he said.

BAMA has also complained to the Bangladesh Competition Commission over restrictions on sourcing pesticide raw materials. A hearing scheduled for July 22 was postponed.

According to BAMA, the Department of Agricultural Extension (DAE) has enforced restrictions since 2018 based on decisions of the Pesticides Technical Advisory Committee (PTAC). The association claims the policy prevents local manufacturers from importing quality raw materials from different countries at competitive prices.

BAMA argues that the Pesticides Act 2018, Pesticides Rules 1985 and Pesticide Rules 2010 do not contain specific provisions allowing the permanent or temporary closure of import sources. It also claims the policy conflicts with the Import Policy Order 2022, which encourages sourcing products from at least three suppliers in two countries.

The dispute centres on decisions taken at the PTAC’s 69th and 77th meetings, where restrictions were imposed on raw-material sources and field testing was required before changing sources for registered pesticides.

In a December 2021 letter, the Ministry of Agriculture reportedly said there was no provision under the existing legal framework to permanently or temporarily suspend import sources. It also said PTAC recommendations could only be implemented after approval by the ministry.

Bangladesh’s pesticide market is estimated at around Tk15,000 crore, with multinational companies and finished-product importers controlling nearly 92 per cent of the market. Although the government has approved 22 agrochemical manufacturers, their combined market share is only around 8 per cent.