Agriculture has long been a defining pillar of Bangladesh’s economy, shaping its identity and sustaining millions of livelihoods. At the time of independence, agriculture was a dominant contributor to the country’s Gross Domestic Product (GDP), accounting for nearly 60 percent. It provided employment to the majority of the population and served as the backbone of the national economy. However, over the decades, the sector’s share of GDP has witnessed a steady decline, largely as a result of shifting priorities towards industrialisation and urbanisation. By 2010, the contribution of agriculture to GDP had dropped to 17 percent, and by 2020, it had further diminished to 12.7 percent. This decline continued, reaching 11.2 percent last year. The reduction reflects not only the global trend of emphasising industrial development over agriculture but also a neglect of the sector’s immense potential. Despite this, agricultural startups are emerging as game changers, breathing new life into the industry and inspiring a shift toward innovation and sustainability.
Bangladesh’s agricultural sector is currently undergoing a transformation led by startups. These innovative enterprises are challenging traditional farming practices and offering solutions that address long-standing inefficiencies. Interestingly, many of the startups are initiated by individuals without formal agricultural backgrounds. Their interest stems from recognising the overlooked potential of agriculture as a viable and dynamic sector capable of driving national growth. By blending technology, modern business strategies, and sustainability, these startups are not only revitalising the sector but also drawing attention to its importance in achieving self-sufficiency and food security.
One of the key strategies adopted by these startups is the business-to-consumer (B2C) model, which eliminates the need for intermediaries in the supply chain. This approach has multiple benefits: it ensures that consumers receive high-quality products at fair prices while simultaneously increasing profits for farmers and agricultural workers. Moreover, the reduction of intermediaries disrupts the control of monopolistic syndicates, which have long dominated the sector and suppressed fair competition. By offering better wages and working conditions, agricultural startups are attracting skilled and experienced labourers who had previously left traditional farming due to poor remuneration and a lack of resources. These workers are now contributing to the remarkable success of startups, which are achieving impressive outputs in relatively short periods.
However, the road to agricultural innovation in Bangladesh is not without challenges. Farmers face numerous obstacles, including insufficient support from government agencies, limited access to funding, high transportation costs, and interference from local syndicates. Government-run agricultural research centres often fail to implement their research at the grassroots level. Farmers rarely benefit from the knowledge and innovations generated by these institutions. For instance, training sessions for farmers are often showcased on television but are seldom conducted in reality. As a result, grassroots farmers are left to fend for themselves, with little guidance or assistance when dealing with challenges such as pest infestations, climate change, or market fluctuations.
This disconnect is further exacerbated by the absence of active agricultural officers. Farmers often struggle to contact district agriculture officers in times of need, as these officials are frequently absent from their posts. Such inefficiencies have led to widespread frustration among farmers, many of whom abandon cultivable land due to the lack of resources and support. In rural areas, where traditional farming knowledge is common, the potential for productivity remains untapped because of these systemic barriers. Addressing these issues is crucial if Bangladesh is to unlock the full potential of its agricultural sector.
While Bangladesh faces numerous challenges in its agricultural development, other nations provide valuable lessons on how to harness the sector’s strengths. Vietnam, often referred to as an “Agriculture Powerhouse,” serves as a notable example. Like Bangladesh, Vietnam relies heavily on rice, fruits, nuts, and fish as key agricultural products. However, the Vietnamese government has taken a proactive approach to modernising its farming practices, investing in technology, infrastructure, and research. By embracing innovation and fostering public-private partnerships, Vietnam has positioned itself as a global leader in agriculture. In contrast, Bangladesh’s agricultural sector struggles to achieve similar success due to a lack of national focus and a cultural bias that undervalues farming as a profession.
In Bangladesh, agriculture is often perceived as a labour-intensive and low-prestige occupation. This cultural mindset discourages young people from pursuing careers in the sector, despite its critical role in ensuring food security and economic stability. White-collar jobs are widely regarded as more respectable, leaving farming and agricultural work to be seen as less desirable. This societal bias has stifled the growth of the sector and prevented the country from fully capitalising on its agricultural potential. However, agricultural startups are challenging these stereotypes by demonstrating that farming can be both innovative and lucrative. Through the integration of modern technology and sustainable practices, these startups are reshaping perceptions and inspiring a new generation to explore opportunities in agriculture.
One such example is iPAGE, a United Nations award-winning Bangladeshi startup that empowers farmers through access to information, training, and resources. By addressing critical issues such as climate change and environmental sustainability, iPAGE showcases the potential of agriculture-focused enterprises to drive meaningful change. The success of iPAGE underscores the importance of combining technology with grassroots engagement to create a more resilient and efficient agricultural system.
Investing in agriculture startups offers unique advantages for entrepreneurs and investors alike. Unlike traditional investment avenues such as the stock market, which require significant capital and expertise, agricultural startups offer relatively low entry costs and straightforward processes. Additionally, these ventures provide investors with the opportunity to make a tangible impact on rural development and food security. However, the lack of liquidity in the sector can pose challenges, as investors cannot easily sell their shares. Despite this limitation, the sector has demonstrated its potential to attract significant funding. In 2022, Agroshift raised $1.8 million in investments, while iFarmer secured $2.1 million. Freshie Farm has introduced innovative investment models that allow stakeholders to track project performance through digital platforms, enhancing transparency and accountability. Fashol, another agri-tech startup, raised $1 million in pre-seed funding, further highlighting the growing investor confidence in the sector.
The success of these startups demonstrates that agriculture can be a viable and impactful sector, capable of driving economic growth and addressing pressing global challenges. However, it is important to recognise that no country can achieve sustainable development by focusing exclusively on agriculture. Balanced growth requires advancements in industrialisation, digitalisation, and technology, all of which must complement agricultural development. Ignoring the expertise and contributions of farmers could have severe consequences, including food insecurity, environmental degradation, and economic instability. In a scenario where urban centers become increasingly unlivable due to pollution and overpopulation and experienced farmers are forced into menial jobs, the importance of a robust agricultural sector becomes even more apparent.
Bangladesh has the potential to redefine its economic future by leveraging the innovative spirit of agricultural startups. By creating collaboration between the public and private sectors, investing in modern infrastructure, and promoting sustainable practices, the country can unlock the full potential of its agricultural sector. Supporting farmers through fair wages, advanced technology, and environmentally friendly initiatives will not only strengthen the sector but also contribute to broader national goals, such as poverty alleviation, job creation, and climate resilience.
The vision of Nobel laureate Dr. Muhammad Yunus, as outlined in his book A World of Three Zeros: The New Economics of Zero Poverty, Zero Unemployment, and Zero Net Carbon Emissions, provides a compelling framework for the role of agriculture in achieving sustainable development. Dr. Yunus encourages young people to challenge traditional notions of success and engage in initiatives that promote equality, sustainability, and innovation. Agricultural startups align closely with this vision, offering opportunities for young entrepreneurs to make a meaningful impact while addressing some of the country’s most pressing challenges.
Culturally, agricultural startups have the potential to spark a shift in societal attitudes. By showcasing the profitability and innovation inherent in modern farming practices, these startups can inspire a new generation to view agriculture as a respected and desirable profession. Additionally, the integration of digital tools and data-driven approaches can enhance efficiency and transparency, further solidifying the sector’s role in the national economy. Achieving this vision will require concerted efforts from all stakeholders, including the government, private sector, and civil society.
Ultimately, agriculture startups represent a stepping stone toward a more equitable, self-sufficient, and sustainable Bangladesh. By embracing innovation and addressing systemic challenges, the country can build a resilient agricultural sector that serves as the foundation for its transformation into Bangladesh 2.0. Supporting agriculture startups alongside environmentally conscious industrialisation and digital innovation is essential for creating a brighter, more sustainable future for all.
Author: Anika Tasnim
