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BD coffee market grows by 13.52pc, may hit $48.97m in 2029

Published : Thursday, 23 May, 2024 at 12:00 AM  Count : 260

The popularity of coffee is growing gradually in urban areas in Bangladesh and according to data, the projected revenue in the coffee market in Bangladesh would be $48.97 million in 2029, with an annual growth rate of 13.52%, up from the figure of $25.98 million in 2024.

Most of the current demand for coffee is met through imports from different countries. To make the country self reliant, the Department of Agricultural Extension (DAE) and various nongovernmental organizations, including Palli Karma-Sahayak Foundation (PKSF) and USAID Bangladesh, have been promoting coffee cultivation among farmers through different programs, creating livelihood options through cultivating cash crops like coffee and others.

According to DAE, two varieties of coffee, arabica and robusta, are cultivated in Bangladesh. Due to favourable weather conditions, cultivation is mainly focused on the Chittagong Hill Tracts (CHT), comprising of three hill districts - Bandarban, Khagrachari and Rangamati - located in the southeastern part of the country.

Meanwhile, DAE has initiated a project titled Research, Development and Extension of Cashew Nut & Coffee, which will cost 158.54 crore taka ($13.5 million) from 2021-25.

Project data show that coffee cultivation currently occupies around 2,000 hectares (4,940 acres) of land. Of these, around 1,800 hectares (4,450 acres) are in the Chittagong Hill Tracts. All these plantations were in the last three years.

"We are expecting to increase cultivation to 10,000 hectares [24,700 acres] by 2025, with the target of 4,000-5,000 tons of production annually," Shahidul Islam, director of the cashew nut and coffee project, told Mongabay, an American conservation news web portal that reports on environmental science, energy, and green design, and features extensive information on tropical rainforests, including pictures and deforestation statistics for countries of the world.

Usually, coffee plants start production within two or three years of planting. That means that by 2026-27, initial production might be 1,000 tonnes annually. But in the next few years, production will reach the target, he added.

Farmers involved in the cultivation say they are happy, and they increase the cultivation areas as they get a good return on investment.

A study shows that coffee plants usually grow in a shady environment along with other plants. However, another popular process involves covering vast land areas with coffee plants, typically considered a monoculture.

Bangladeshs hill forests cover about 9.33% of the countrys land in the Chittagong, Khagrachhori, Bandarban, Rangamati, Coxs Bazar, Sylhet and Moulvibazar districts.

Of the 2.5 million hectares (623 million acres) of government-owned forest in Bangladesh, the districts of Khagrachhori, Rangamati and Bandarbans cover 1.09 million hectares (2.7 million acres).

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