Agri export recovery must wait as testing lab faces further delay
The revised plan adds 51 new equipment and excludes 21 from the initial plan
When Bangladesh's agricultural product exports are in decline because of substandard packing, the implementation of the country's sole international standard plant quarantine laboratory faces further delay due to a revised development plan with a new shopping list.
Work started on converting the plant testing laboratory at the Central Packing House in the capital's Shampur into an international standard facility in September 2021 and was scheduled for completion by June 2024.
However, the Ministry of Planning recently pushed the project deadline to June 2025 after the Department of Agriculture Extension sought another year, citing the need to change the list of equipment and increase the capacity of the packing house.
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Project Director Dr Shamim Ahmed told The Business Standard, "The project time has been extended by one year but the lab will open earlier."
He said the lab should be ISO certified to have it conform to international standards. "Work for this is in progress and Bangladesh Accreditation Board (BAB) certification is also in process."
"Without these, no country will accept the lab test results," he mentioned.
Vegetable exports fell by 39% and fruit exports by 81% in FY23, according to the Export Promotion Bureau.
Although there is a large export market for agricultural processing products, Bangladesh is unable to take advantage of it due to the lack of standard packaging, a recent commerce ministry report identified.
Stakeholders anticipate revitalising the struggling export through the laboratory's initiation as the facility is expected to help capture European and US markets and increase exports by 25%-30% by ensuring the quality of vegetables and fruits before shipping.
The delay now raises concerns about meeting these targets in time.
Exporters said there is a risk of a setback in competitiveness if the 20% subsidy on agricultural exports ends after LDC graduation in 2026.
Proposal for the lab
To export agricultural products, it is necessary to test whether the vegetables and fruits are safe in the lab in order to increase the shelf life and improve packaging. These works are done in packing houses.
Therefore, the Department of Agricultural Extension initiated the setting up of a packing house in Shyampur of Dhaka.
In spite of setting up a laboratory in this packing house and buying a lot of equipment, it did not have the manpower to operate it and the lab also did not get international recognition.
Later in 2021, a Tk156.35 crore project was taken up to modernise this lab.
However, the project progressed only 7% till June 2022, project officials said.
To expedite progress, a five-member committee was formed to suggest project proposal revisions, according to sources.
The revised proposal increased the expenditure by 1.25% to Tk158.32 crore.
By adding these new proposals, the Ministry of Planning approved the proposed revision of the project recently.
Changes in plan
The committee has suggested incorporating 51 new pieces of equipment while excluding 21 from the initial laboratory plan, resulting in approximately Tk43 crore in savings, project officials said.
They said the committee has recommended utilising the saved money for essential training to enhance lab and packing house personnel skills, repairing damaged cold chambers, enhancing infrastructure, and installing advanced pneumatic sample transfer systems.
It also proposed renovating both floors of the packing house to adhere to sanitation and hygiene practices similar to developed countries.
The committee pointed out that part of the packing house serves as an office, limiting its capacity. Infrastructure constraints prevent installing essential automatic washing and drying equipment needed for agricultural product export.
Besides, the project will expand the water treatment plant, relocate the office, create space for automatic washing and drying, and provide dormitory and equipment such as forklifts, tractor-driven trolleys, and industrial cleaners for efficient transportation and cleaning of goods at the centre.
Project officials also plan to allocate the savings towards a gas station, upgraded power station, ETP plant, enhanced fire hydrant and extinguishing systems, and net metering solar power installation.
These measures will ensure efficient operations and lab accreditation while conserving electricity, officials said.
