The interim government of Bangladesh has extended a 20% cash incentive to juice and drink exports made from locally sourced fruit pulp, aiming to promote agro-processing industries and rural entrepreneurship. Bangladesh Bank issued a circular on November 21, highlighting that firms collaborating with exporters to source local fruit pulp are also eligible. This move aligns with existing incentives for exporting processed agricultural goods, such as pastes, bars, and dehydrated products, encouraging the use of local produce in value-added exports.
Experts believe this decision will diversify the export portfolio, benefit rural farmers, and address the slow growth in agricultural exports. Between fiscal years 2012-13 and 2022-23, agricultural exports rose 57% to $843 million, compared to $536 million a decade earlier. However, the share of agricultural products remains modest within the $43.17 billion overall export earnings of 2022-23, underscoring the need for targeted policy support to unlock the sector’s potential.
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