Bangladesh is primarily an agrarian economy and agriculture is crucial for the country’s socioeconomic development. The agriculture sector generates approximately 31 percent of the GDP, contributes to 24 percent of export earnings and accounts for 65 percent of national employment. Challenges Natural disasters are the biggest threat to the agriculture sector in Bangladesh. The annual agricultural output frequently fluctuates since Bangladesh is prone to floods, cyclones and droughts. Another key challenge facing the agriculture sector is shortage of land. Rapid growth in rural population and the resulting fragmentation of land holdings implies that farm sizes are diminishing. Smaller farms have less access to credit and modern technology, which leads to reduced productivity. In addition, due to the acute scarcity of land and the lack of a comprehensive land use policy, agricultural land is frequently exploited for human settlements, brickfields, shrimp farming etc. There has not been sufficient crop diversification in Bangladesh and rice occupies almost 75 percent of the cropped area. High-yield variety seeds are mostly available for rice and wheat and this reduces the competitiveness of other crops like pulses etc. Modernization of Agriculture Given the scarcity of land, future growth in agricultural output will have to result from increased productivity. Thus modernization of agriculture, including implementation of scientific research, irrigation, application of fertilizer and use of machinery and high yield variety seeds, are essential. In addition, new storage and processing technology is needed to increase agriculture sector revenues. Currently the agricultural research efforts are led by the apex institution Bangladesh Agricultural Research Council (BARC). BARC plans, coordinates and integrates the activities of ten research institutions – six belonging to the Ministry of Agriculture, two from the Ministry of Fisheries and Livestock and one from the Forest and Environment Ministry. Trade and Investment The fisheries and livestock sectors in Bangladesh has benefited substantially from private sector investment. The crop sector is currently undergoing transformation from subsistence to commercial farming. This can open up investment and trade opportunities in crops, seeds, fertilizers, processed food etc. Related Web Links Bangladesh Agriculture University http://agri-varsity.tripod.com Bangladesh Agriculture Research Council http://www.saic-dhaka.org/saic/BARC.htm Agriculture R&D Institutes in Bangladesh http://members.tripod.com/~UTTAMDEB/res.html Ministry of Agriculture http://www.bangladeshgov.org/moa/moa.html Bangladesh Agriculture Facts http://www.nationmaster.com/country/bg/Agriculture Overview of Agriculture Sector http://countrystudies.us/bangladesh/67.htm Food and Agriculture Organization: Bangladesh Country Profile http://www.fao.org/countryprofiles/index.asp?lang=en&iso3=BGD CARE: Rural Livelihoods Program http://www.careinternational.org.uk/cares_work/where/bangladesh/projects/project.php?id=97 Comparative Advantage and Crop Diversification in Bangladesh http://wbln0018.worldbank.org/lo%20web%20sites/bangladesh%20Web.nsf/0/370f3af793c7c41546256711001bb7c1?OpenDocument