Agrochemicals missed opportunities to grow under WTO

Different types of chemical products such as pesticides (insecticides, herbicides, fungicides, nematicides etc.) and biopesticides used in agriculture are called agrochemicals or agricultural chemicals. It also contains synthetic fertilizers, hormones, Plant Growth Regulator (PGR) as well as raw animal manure concentrates.

Insects, diseases and weeds cause severe plant risks. When an insect attacks a plant the yield and vegetative growth is hampered which leads to less production and yield shortage. Pesticides help the farmers to protect their crops from the insects and pests to ensure food security. To boost the crop yield, a large number of fertilizers can be used which are natural. To sustain against the pest attack, environment friendly pesticides or bio-pesticides can help to produce more food.

A large number of fertilizers are natural. In case of pest attack producing healthy and reliable crops will be much harder without chemical use. Agrochemicals are handled carefully for getting fruitful results. The benefits of agrochemicals are not limited to growing crop yield. Persons who eat plants in contact with disease-provoking organisms have been at risk of these diseases before pesticides were widely used.

This is much less of a threat due to the increased use of pesticides in farms around the world. Weeds, pests, and diseases have an impact on up to 40 per cent of the future crop production worldwide. There is no country in the world who doesn't use agrochemicals but they have judicial use in place and they prefer safe pesticide and opted for green pesticide. Unfortunately, the farmers of our country are using hazardous and extremely hazardous agrochemicals. This is the high time for Bangladesh to go for local manufacturing of the agrochemicals with proper quality control. If current pesticide uses were eliminated, the food security will be questioned.

To limit effects of agrochemical usage, the developed world is continuously developing modern safe agrochemicals with their advanced technologies where disadvantages are lower than old types of agro chemicals used in agriculture.

The giant agro chemical companies are marketing them to the entire world but due to its higher prices many countries can't afford them. In this regard, the World Trade Organization (WTO) has devised a policy that the Least Developed Countries (LDC) are allowed to re- engineer the multinational companies discovered patented agro chemicals for their own use as well as export to third world countries. Unfortunately, Bangladesh missed to capitalize this opportunity in the agrochemical sector for the last few decades.

This happened due to the inadequate knowledge of the officials about WTO rules, unwillingness and unplanned policy support regarding domestic agricultural growth. Though Bangladesh is doing better in food production but to ensure future food safety and continue existing production it is imperative to go for own production of agrochemicals.

Otherwise, after graduating to a developing country status Bangladesh may face serious problems in agriculture. Food production would deteriorate without crop protecting agents, many fruits and vegetables would be missing, and prices would increase. Currently pesticides are helping to keep food prices in check for the consumers. Chemicals for crop protection to minimize and, in some cases, eliminate insect damage allow the customer to buy high-quality insect-free products while at the same time doing little harm to human life. Even this little harm to human life can also be eliminated through proper quality control while establishing standard local laboratories.

For such, local production chains of high-quality agrochemicals should be maintained for food security. At present, application of patented high quality and high-end agrochemical pesticides practiced by the farmers in Bangladesh are maximizing the crop production from their limited land. Bangladesh is one of the densely populated countries in the world with per capita cultivable land of 0.06 hectare only which is much less than the existing projected world average of 0.25 hectare.

Feeling this pulse, the local private entrepreneurs who are engaged in agriculture related business for decades have tried several times to get permission for manufacturing patented agrochemicals. But it's an irony of fate that the officials are yet to support the local entrepreneurs who do have the capacity to go for investments in manufacturing world standards agro chemicals which is legitimated by the WTO as being an LDC member.

As per the WTO rules, the patent shall not be applicable for Bangladesh. The farmers have to pay higher prices for the patented products. Agrochemical manufacturing is possible with low financed technologies but it is unfortunate that we could not do so though we have the opportunity. Bangladesh could not even start technical manufacturing. In our neighboring country India, they have devised an export friendly policy. If any Indian company receives an export order but doesn't have the registration of the specific products, the government provides the necessary permission within 5 working days to cater the export orders.

Local agrochemicals industry could be a billion dollar industry today like pharmaceuticals. In the year 1982 the pharmaceuticals market size was only $250 million but after four decades today it is a $3.5 billion domestic market. As agrochemicals could be grown like pharmaceuticals under WTO rules the government can provide all necessary policy support to agrochemicals just like pharmaceuticals.

Agrochemicals could be a sustainable, safe, affordable and profitable for farmers and an import substitute sector. But this industry is overlooked in Bangladesh whereas other countries have developed their capacity and infrastructure with government support. So, it is a demand for the time and we believe that the officials would feel the necessity of allowing local manufactures with proper policies and be in favor of enabling their own capacity for local manufacturing of the agrochemicals for a safe and secured agriculture.

Our governments are always agriculture friendly that is why we are almost self-sufficient in growing foods in limited land and for 170 million people. It would be better if we can manufacture high standards and high effective agrochemicals locally just like the strong base of pharmaceuticals. This base will create an ample opportunity to sustain the local food production and open the export doors for the agrochemicals.

Bangladesh since its independence has been initiating measures for increasing yields that helped in mechanized farming over the last five decades. There was a privatization process of the pesticide sector and for this Pesticide Association of Bangladesh was formed in 1976 involving all local suppliers. The Government withdrew subsidy completely in 1979 and the pesticide business was transferred to the private sector. Now it is fully dominated by private investments. But it is unfortunate and very unhappy to know that out of the total market share a major percent is dominated by the foreign companies. Despite having its own capacity, it is very much unusual that our agrochemical market and business is not in our hands.
The writer is managing director of National AgriCare Group and President, Bangladesh Agrochemical Manufacturers Association