Red Tape Chokes Pesticide Industry Despite NBR’s Clearance Reforms

Bangladesh’s pesticide manufacturing industry is being strangled by bureaucratic red tape, with local producers struggling to import essential raw materials despite a government move to simplify customs clearance and boost domestic production.

Manufacturers allege that the Ministry of Agriculture and the Department of Agricultural Extension (DAE) are refusing to implement a new National Board of Revenue (NBR) regulatory order, forcing them to comply with outdated procedures that cause repeated inspections, shipment delays, additional costs and harassment at ports.

The regulatory bottleneck has put the industry in a precarious position, undermining the government's stated policy of encouraging domestic pesticide production and reducing dependence on imported finished products, which drain thousands of crores of taka from the economy annually.

The NBR has already issued a revised statutory regulatory order (SRO) to ease the clearance of imported raw materials. However, manufacturers say the reform remains largely ineffective because the agriculture authorities continue to enforce the previous requirements.

Under the existing practice, manufacturers must obtain a fresh no-objection certificate (NOC) from the Ministry of Agriculture for every consignment of raw materials arriving at Chattogram Port. The process begins with an application to the DAE, followed by ministry approval and factory inspections by an investigation committee before the certificate is issued.

Agriculturist KSM Mostafizur Rahman, president of the Bangladesh Agrochemical Manufacturers Association (BAMA), said repeated inspections and consignment-based approvals were unnecessary because factories had already undergone scrutiny before receiving manufacturing licences.

"Once a factory receives a manufacturing licence, why should it undergo repeated inspections every time raw materials arrive at the port? We have no objection to regular factory inspections, but requiring a fresh NOC for every consignment is unacceptable," he said.

He said the industry had repeatedly complained to the finance minister about the harassment, prompting the minister to direct the authorities to withdraw the requirement for a separate NOC for every consignment.

Following the government's directive, the NBR issued SRO No. 156-Act/2026/Customs, replacing the previous SRO No. 199-Act/2025/21/Customs.

Under the revised arrangement, manufacturers are supposed to receive a certificate valid for repeated use in clearing imported raw materials, eliminating the need to obtain a fresh NOC for every shipment.

But the relief promised by the new SRO has yet to reach manufacturers, who allege that the agriculture ministry and the DAE continue to apply the old procedures, effectively rendering the regulatory reform ineffective.

"We have repeatedly approached the Ministry of Agriculture, but no solution has been found. The ministry has advised us to discuss the matter with the DAE. As a result, we are still following the old procedure, which causes delays, additional costs and unnecessary harassment," Mostafizur Rahman said.

He alleged that domestic manufacturers were being subjected to additional regulatory hurdles while businesses importing finished pesticides faced no comparable restrictions.

"Instead of encouraging local production, officials are creating obstacles. We are producing pesticides domestically to reduce import dependence, which is also the government's objective. Yet manufacturers are being discouraged," he said.

BAMA has taken the issue to both the NBR and the Ministry of Finance and has written to the finance minister, seeking urgent intervention to ensure that the revised SRO is implemented.

The association fears that continued bureaucratic complications will undermine investment in local manufacturing, weaken the industry's competitiveness and further discourage efforts to substitute imports with domestically produced pesticides.

When contacted, Dr Enayet-e Rabbi, acting director of the Plant Protection Wing of the DAE, said the department generally operated under the instructions of the Ministry of Agriculture.

"Clearance certificates are issued in line with the new SRO," he said.