The government aims to capitalise on this trend by utilising the vast uncultivated mountainous land to boost exports and support local farmers.
Over the past three years, the cultivation and production of cashew nuts have doubled, driven by increasing demand and the entry of new entrepreneurs into this high-value crop market. The entrepreneurs are advocating for stricter control on imports to protect domestic prices and enhance the profitability of local production.Fertility and Potential of Hilly Regions
The hilly areas of Bangladesh, known for their pure and fertile soil, are ideal for growing various fruits. The recent focus has shifted towards cashew nuts due to their relatively high market price and ease of cultivation. In areas like Rangamati, vast stretches of land are now adorned with cashew nut trees, with both new and old plantations contributing to the green landscape. The low labour costs, easy marketability, and high value of cashew nuts have attracted many entrepreneurs. With the new trees bearing fruit within three years, there is renewed optimism among local farmers and business owners.
Economic Impact
Raw cashew nuts are sold at Tk 250 per kg, while processed cashews fetch between Tk 1,400 to Tk 2,000 per kg. This significant price difference underscores the importance of processing facilities and the need for import controls to maintain favorable market conditions for domestic producers.
Wazedul Islam Mubin, owner of Cashew and Coffee Agro, underlined the need for higher import duties on foreign nuts to ensure competitive prices for locally produced cashews.
He says that this will encourage more entrepreneurs to invest in cashew cultivation and processing.
Globally, the cashew nut market is valued at $10 billion, with an annual production of about 7 million metric tonnes. Bangladesh aims to capture a significant share of this market by expanding its cashew cultivation from 1,800 hectares to 4,200 hectares over the past three years, resulting in a production increase to 2,500 metric tons.
Govt Initiatives
Economists view the future of cashew nut cultivation in Bangladesh as promising. Agricultural economist Dr. Nazrul Islam noted that imposing tariffs on imports would benefit domestic entrepreneurs.
He stressed the importance of training farmers to enhance production and enable exports.
The agriculture department is actively supporting farmers by addressing the major challenge of water shortage in the hilly regions.
The Cashew Nut and Coffee Research, Development, and Extension Project, led by director Shahidul Islam, is implementing solar-powered irrigation systems to improve water management.
However, these efforts need to be scaled up to meet the growing demand.
Future Prospects
In addition to boosting domestic production, entrepreneurs are looking to process imported cashew nuts to enter the list of exporting countries. This dual approach aims to strengthen Bangladesh's position in the global cashew nut market.
As the government and local entrepreneurs continue to invest in cashew nut cultivation and processing, the hilly regions of Bangladesh are poised to become a significant hub for this lucrative crop.
The combined efforts of training, irrigation improvements, and import controls promise a bright future for the country's cashew nut industry.