The Ministry of Commerce has decided to grant tariff relief and simplify import procedures for raw materials used in pesticide production — a long-standing demand of local manufacturers seeking to strengthen domestic output and reduce reliance on imports.

The move, formalized through a notification signed on Saturday (October 25) by Deputy Secretary Md Saiful Islam, is expected to pave the way for full-scale local production of all types of pesticides. Officials and industry leaders say the decision could turn the sector into an export-oriented industry, similar to Bangladesh’s fast-growing pharmaceutical sector.

Bangladesh’s pesticide market is estimated at around BDT 75 billion, with seven multinational companies controlling roughly 55 percent, or BDT 41.25 billion, according to industry data. Local importers supply about 41 percent, worth around BDT 30.75 billion, while domestic producers hold only a 4 percent share, or about BDT 3 billion.

Until now, raw materials used for local pesticide manufacturing were subject to high import duties ranging from 30 to 58 percent, while finished pesticides faced only 5 percent import duty. Industry groups argued that this disparity discouraged domestic production.

Local entrepreneurs say the policy shift will lower production costs significantly. “If raw material imports are made easier and more affordable, prices for farmers could drop by at least 30 percent,” said one manufacturer.

KSM Mostafizur Rahman, president of the Bangladesh Agrochemical Manufacturers Association (BAMA), welcomed the government’s decision, calling it “a long-overdue step.”

“We are grateful that after 54 years of independence, the government has finally recognized the producers’ demands,” he said. “It is now up to the National Board of Revenue (NBR) to implement the policy. If NBR and relevant ministries act quickly, Bangladesh will no longer need to import pesticides within two to three years — and like the pharmaceutical industry, we could even start exporting.”