Bangladesh Seed Industry at a Glance

Bangladesh Seed Grower, Dealer and Merchants Assocation (BSGDMA) Asian Seed Congress 2007, Manila, Philippines

Bangladesh is primarily an agriculture based country with agriculture accounting for 23% of the countrys GDP. About 75% of the countrys population is engaged in agricultural production. The seed industry in Bangladesh comprises of both public and private sector initiatives. In the private sector, there are more than 100 companies involved, with over 5000 registered seed dealers operating across the country. The recent expansion of the private sector seed companies has resulted in the engagement of thousands of contract farmers into the formal seed production chain, leading to improved livelihoods amongst the rural community. Government agencies involved in this sector include Bangladesh Agricultural Development Corporation (BADC), Bangladesh Agricultural Research Institute (BARI), Bangladesh Rice Research Institute (BRRI), Bangladesh Jute Research Institute (BJRI) and Department of Agriculture Extension (DAE). The government has recently given the seed sector a priority status. Of the locally produced vegetable seeds, nearly 905% is accounted for by the private sector. The government agency most actively involved in vegetable seed production is BADC. Vegetable production is Bangladesh has traditionally been seasonal, with 70% of the vegetables being grown in the dry winter months between November and February, and only about 30% during the rest of the year. Recent initiatives from the private sector have emphasized the development of vegetable varieties suitable for growing during the hot and wet summer months between March a-October-enabled by the production of off season vegetable seed varieties. The past decade has also been marked by a transition from Open Pollinated to Hybrid varieties-deriving maximum utilization from the existing land mass. With regards to rice seed this year, an additional 1 million hectare of land has been brought under hybrid rice production. This required 11400 MT of seed, and of this 1800MT was locally supplied while the rest was imported. The production, marketing and import of the entire volume of the hybrid rice seed was undertaken by the private sector. However, hybrid rice seed accounts for less than 5% of total rice seed requirement. Considering the land limitations in the country, recent trends indicate a shift towards the production of high yielding varieties of both vegetables and rice. Locally produced varieties including Red Amaranth, Stem Amaranth, Yard Long Bean, Bitter Gourd and Cabbage have found markets in Europe and some countries of South East Asia.

Market Opportunities

Varieties

Total Demand (Ton)

Total Supply

Total Supply

Rice wheat Maze Jute Pulses Oil Seed Vegetable Seed Spice Seed Potato Total

313955 72000 3300 3570 21350 13500 2700 101875 400000 932250

Government Sectors 74314 19051 233 456 245 398 63.2 42 9231 104033.2

Private Sectors 3350

77664 19051

3000 1350

3233 1806 245 398

728 65 5000 13493

791.2 107 14231 117526.2

Source: Seed Wing, Ministry of Agriculture, 2006 The gap between local production and demand for seed amounts to nearly 87 percent. Imported seeds thus play a major role in the seed sector of Bangladesh. Huge opportunity also exists for the expansion of local seed production.

Market Size of Seed in Bangladesh Crop Name Quantity of Seed Used in Agriculture (MT) 288956 25000 72000 3300 3570 21350 13500 2700 400000 830376 Market Price of Seed Used in Agriculture (M Dollar) 124 71 26 5 3 15 10 12 171 436

Rice (HYV) Rice (Hybrid) Wheat Maize Jute Pulse Oil Seed Vegetable True Potato Total

Source: Seed Wing, Ministry of Agriculture, 2006

Scenario of Seed Management in Bangladesh 13% quality seed Formal Seed Segment (Produced following seed production technology and procedures. BADC, DAE, BARI, BRRI, BJRI, Some NGOs and private companies

Semi-Formal segment (partially follows the seed technology and procedures)

40% non tested and unlabeled seed

Seed trader, seed dealer and efficient farmers

Informal Seed (does not follow any seed technology procedures)

47% Farmers Seed

Farmers own production and consumption

Huge untapped potential for seed business