As a follow up to the impact of COVID-19 on agribusinesses in India, we are pleased to announce the second edition of our South Asia analysis with the impact assessment of COVID-19 on Agribusinesses in Bangladesh. The brief report compiles insights from senior industry leaders on financial and supply chain challenges, key learnings, opportunity areas, and recommendations stemming from this pandemic. We hope you find this a relevant read and encourage you to share this with your friends and colleagues in the industry and across South Asia.

1. Impact of COVID-19 on
Agribusinesses in
Bangladesh
Insights from Industry Leaders
May 20, 2020

2. 1. Mr. Anwar Faruque, Ex-Secretary, Ministry of Agriculture
2. Mr. Mohammed Yousuf, Director General, Directorate of Agricultural Marketing
3. Mr. M Sayeduzzaman, Chairman, Bangladesh Crop Protection Association (BCPA)
4. Mr. A M Sadrul Alam, Secretary General, Bangladesh Crop Protection Association (BCPA)
5. Mr. AMM Golam Towhid, Managing Director, Syngenta Bangladesh Limited
6. Mr. Zahidul Islam, Executive Director, Bayer Crop Science
7. Mr. Sazzadul Hassan, Managing Director, BASF
8. Mr. S A M Ashfakul Abedin. Executive Director, Auto Crop Care Limited
9. Mr. Ruman Hafiz, Executive Director, Shetu Corporation (Bangladesh) Limited
10.Mr. S I H M Musfiqur Rahman, Country Director, Haychem (Bangladesh) Limited
11.Mr. Saif Uddowlah, Director, Petrochem (Bangladesh) Limited
12.Mr. Saiful Huda, Director, Naafco Limited
13.Mr. Sadid Jamil, Managing Director, Metal Agro Limited
14.Mr. Sopan Malik, Managing Director, A R Malik Seeds Limited
15.Mr. Sudhir Nath, Business Director, ACI Seeds Limited
16.Ms. Fawzia Yasmeen, Director, Ispahani Agro Limited
17.Mr. Humayun Kabir, Managing Director, Supreme Seeds Company Ltd
List of Attendees

3. Contents
Executive Summary
Recommendation highlights: By industry
Supply chain challenges and impact
Financial challenges and impact
Cross sector impact analysis
Four opportunity areas
Recommendations: By impact area
Learnings and observations
6
1
2
3
7
4
5
8

4. COVID-19 and measures taken to control the pandemic are
having a crippling effect on health and economic systems
across the globe. Agriculture & food sectors, though a part
of the essentials list, are not immune to the disruptions the
pandemic has caused in the supply chains and the financial
markets, both domestic and international, and can
expect interruptions in the coming months.
Considering the growing concerns and uncertainty around
the pandemic, South Asian AgTech Hub for
Innovation (SAATHI) hosted an Online Roundtable to discuss
the “Impact of COVID-19 on Bangladeshi Agribusinesses”
on 13th May 2020.
The event was hosted by Mr. Mahbub Rahman, Country
Representative – SAATHI, Mr. Girish V Aivalli, CEO –
SAATHI. The Guests of Honour were Mr. Anwar Faruque,
Ex-Secretary, Ministry of Agriculture and Mr. Mohammed
Yousuf, Director General, Directorate of Agricultural
Marketing.
.
This report compiles insights from senior industry leaders to
provide an in-depth understanding of the ground reality of
COVID-19’s impact on agribusinesses, measures taken by
stakeholders, potential opportunity areas, and finally,
recommendations to minimize the impact on the industry.
Subsectors of agribusinesses highlighted:
1. Seeds
2. Agrochemicals
3. Farm machinery
Impact areas covered:
1. Financial
2. Operational
3. Trade
Recommendations directly from industry leaders:
1. Regulations
2. Banking and Finance
3. Supply Chain and Operations
4. Agricultural Infrastructure
5. Stakeholder Cooperation
SAATHI | 01
Executive Summary

5. Provide economic and operational
support to strengthen local production
of seeds
Manage current hurdles to hybrid seed
imports for continued access to higher
yielding seeds
Ensure banking support for agri-
machinery importers and distributors
selling machinery at EMIs over 36
months
Extend interest free loans and increase
access to subsidies to the farmers to
enable access to Agri Machinery
Open sources of registered
agrochemicals to enable import of same
products from other suitable sources
Consider waiver or reduction of AIT and
custom duty for crop protection
industry
Recommendation Highlights: By Industry
SAATHI | 02
Agrochemicals Seeds Farm Machinery

6. SAATHI | 03
SAATHI | 03
Disrupted supply chains have heavily
impacted the agriculture sector
Poor coordination in execution of
Government’s orders at the local
level
Disruptions to business
operations
Inability to move products from
warehouses to distributors
Delays in farmers getting
critical farm inputs for
upcoming seasons
Increase in fear of coronavirus
among farmers, employees, and
channel partners
Limited business activities Ex:
50% growers failed to go to
field during peak time
Shortage of supply of
transportation facilities along the
supply chain
Increased transportation costs
for agribusinesses to move
products
Challenge Impact
Gradually activate market systems. For ex:
If there are 3 bazaars in a village, we can
open only one bazaar for a shorter
duration, ensuring that farmers can come
and sell their products with
transportation support from local
management”
Supply Chain Challenges and Impact

7. Financial Challenges and Impact
SAATHI | 03SAATHI | 03
Disrupted supply chains have heavily
impacted the agriculture sector
Severe lack of cash in the market
due to limited banking facilities
Delay in credit payments from
farmers and dealers to
companies creating cash
crunch in the market
Lack of clarity on access to
concessional financing options
provided by the government
Inability of companies to
access financing options, and
increasing working capital
constraints
Lower price realizations for
farmers even during harvest
season
Lower incomes for farmers,
and lesser cash for investing in
next season’s crops
Lack of corporate account
systems and high transaction
costs of 1.5%
Delays to critical business
transactions
Challenges Impact
Department of Agricultural Marketing
presently calculating production cost
of vegetables and paddy in order to fix
product selling price in every level like
farmers gate, wholesale market,
and also retail level to ensure fair price
to farmers
SAATHI | 04

8. SAATHI | 04SAATHI | 04
Seeds Agrochemicals Farm Machinery
Financial
Inability to sell seeds due to closed shops, and
farmer cash constraints, resulting in only 20% of
sales targets met for agribusinesses
Price of agrochemicals likely to increase due to a
shortage of supply caused by disruptions in local
production and inability to process imports in a timely
manner
Shortfall in cash flows for companies who sold
agri-machinery to farmers on lease or credit, as
only 20-25% of the EMI loans were collected
Failure to clear payments by companies as
money blocked at dealers end due to shortage
of cash in the market
Failure in bank loan repayments due to cash
constraints for companies
Operational
Potential shortage in supply of quality seeds for
upcoming sowing seasons as local seed
production has been hampered along with
delays in getting imports from supplying
countries due to lockdown restrictions
Increase in the average lead time required for
introducing crop protection products into the market
due to delayed port clearances and transportation
hurdles
Barriers to the movement of tractors, and
combined harvesters, as agri-machinery and
equipment not relieved under Govt. guidelines
Inability of farmers to purchase seeds for
sowing vegetables in the upcoming summer
season due to cash constraints
Inability of input dealers to open shops freely to supply
products, due to restrictions from local authorities
Inability of service staff such as mechanics to
move to repair machinery due to lockdown
restrictions
Trade
Spike in international freight fares and seeds
has dampened production for import reliant
seed companies
Import of pesticides from a fixed registered source has
caused supply challenges as sources are hiking their
prices
Hurdles in transportation and delays at ports
caused difficulties for products that required to
be transported from the port to the warehouses
and ultimately to the consumersInability to import higher yielding hybrid seeds
will dampen overall yield in Bangladesh during
upcoming seasons
Supply from China and India being delayed due to
manufacturing and supply challenges in these
countries
SAATHI | 05
Cross Sector Impact Analysis

9. Digitization
Initiatives
Agricultural
Productivity
Local Cultivation
1 • Increase local cultivation of import dependent crops like onion,
pulses and wheat to make Bangladesh self reliant
• Tap into export opportunities for crops such as vegetables and
potatoes having an exportable surplus to drive farmer incomes
• Adopt hybridization and crop diversification to drive farm
productivity
Hybridization
Farm Advisory
2
Traceability
• Invest in digital platforms that can protect companies during
shock situations, and drive overall productivity and efficiency in
agribusinesses
• Invest in digitization for traceability in supply chains, data-driven
advisory to farmers, and tracking of vendor payments
Commercial
Agriculture
Farm Mechanization
3
• Decrease dependency on labour by providing farmers access to
tractors seeders, transplants, and reapers
• Drive commercial agriculture as this will be critical in improving
productivity in the future
Cross-Border
Partnerships
New Technologies
4
New Business Models
• Increase partnerships with foreign companies to ensure
beneficial business models and technology solutions can be
transferred to Bangladesh’s agriculture sector
• Expedite the establishment of agro-processing zones and to
reduce massive food wastage and loss
SAATHI | 06
Four Opportunity Areas

10. • Ensure minimum price protection for farmers to enable them to continue production for next season
• Provide a waiver or withdrawal of Advanced Income Tax on import of all finished products and raw
materials for crop protection industry
• Enable companies to import same registered products from other suitable sources, having same
specifications, considering import restrictions caused by COVID-19
• Facilitate smooth and speedy clearance of imported products at the ports
• Allowing tolling for agrochemical manufacturing and repacking companies to maintain quality standards
and safety in manufacturing
• Extend flexible term and lower interest rate loans (1-2%) to agribusinesses for managing working capital
needs
• Provide clarity on the access to concessional financing such as stimulus packages and agri-loans to ensure
beneficiaries, particularly growers, can avail its benefits
• Provide interest free or nominal interest loans for farmers to enable them to meet their daily labour and
inputs costs, and farm machinery expenditures
• Facilitate provisions for adequate crop insurance policies for farmers to protect them from shocks
Regulations
Banking and Finance
SAATHI | 07
Recommendations from the Industry (1/2)

11. • Stabilize supply chain and gradually activate market systems
• Fix transportation hurdles and increasing costs to enable movement of agri-inputs for their timely supply for
upcoming season
• Establish farmers markets in every district to allow cooperative farmers to sell their produce directly, provided the
provisions for warehouses are made for sorting, grading etc.
• Include veggies in the relief basket by tracking all districts with surplus food production to to ensure farmers
receive fair prices produce
Supply Chain Operations
• Improve storage capacities for food grains
• Construct specialized cold storage facilities in all districts to store surplus vegetables and fruits so that farmers
can store their produce and getter higher prices upon selling when prices are better
• Develop online marketing platform run by Department of Agricultural Marketing where agribusinesses,
supermarkets, truck suppliers etc. are listed and can buy products directly from farmers
• Create a committee involving relevant stakeholders from public and private sector to focus on crops with
exportable surplus, and on crops that are heavily import reliant
• Collaborate with all stakeholders i.e. DAE, PPW, NGOs, and industry associations to share knowledge, technology
solutions, and financing opportunities to overcome current pandemic situation
Agricultural Infrastructure
Stakeholder Cooperation
SAATHI | 08
Recommendations from the Industry (2/2)

12. Key Learnings and Observations
ü Government’s adequate management of Boro harvesting
in Haor areas helped farmers and businesses mitigate the
crop loss due to early flood. The measures included
transporting labourers to Haor areas from other parts of
the country and arranging machines for harvesting
ü Engagement of agribusinesses with Industry association
and government bodies led to Agri inputs being considered
as essential products early on
ü Continuous engagement with Ministry of Agriculture and
local administration is needed to ensure execution of
Central Government guidelines at local levels
ü Spread of awareness among farmers about Agri-
machinery such as combine harvesters & reapers due to
abrupt shortage of labor caused by the pandemic
Indo Bangla Cooperation
Indian and Bangladeshi agriculture sector is very similar
from a geographical and cultural perspective. However,
India is ahead of Bangladesh when it comes to
established technology solutions and Agri business
models. There is, thus, immense scope for Indian
agribusinesses to transfer knowledge, technology
solutions and successful Agri-business models to
Bangladesh, by working together with companies,
government bodies, banks and regulators in the country.
This is also an opportunity for Bangladesh to diversify
import partners and work together with Indian
companies to access high quality farm inputs, agri-
machinery, and other products.
SAATHI | 09

13. Contact Us
Girish Aivalli, CEO
girish.aivalli@saathi.asia
+91 9818141779
Level 3, Augusta Point, Sector 53,
Golf Course Road
Gurgaon: 122002
Haryana - India
https://www.linkedin.com/co
mpany/saathi-asia/
https://twitter.com/saathiasia
https://www.facebook.com/
SAATHIASIA/
www.saathi.asia