Agriculture Growth Reduces Poverty in Bangladesh

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Story Highlights

  • Agriculture has played a key role in reducing Bangladesh’s poverty from 48.9% in 2000 to 31.5% by 2010 with over 87% of rural people part of their some income from agricultural activities.
  • Irrigation, high-yielding crop varieties, more efficient markets, and mechanization, enabled by policy reforms and investments in agriculture research, human capital, and roads have driven growth.
  • Bangladesh now needs to shift toward high-value agriculture, including horticulture, livestock, poultry and fisheries to foster future growth and further reduce poverty.

Bangladesh is well known for its progress in human development. But its achievements in agriculture remain an untold story despite being key to reducing poverty since 2000. A new World Bank report “ Dynamics of Rural Growth in Bangladesh: Sustaining Poverty Reduction ” identifies changes in the farm and non-farm sectors of the rural economy and the policy implications and actions to foster future growth, further reduce poverty, and improve food security and nutrition.

A Vibrant Rural Economy

Agriculture plays a key role in Bangladesh’s economic growth. Extensive irrigation, high-yielding crop varieties, more efficient markets, and mechanization, enabled by policy reforms and investments in agriculture research, human capital, and roads have driven agriculture sector’s growth.

Agriculture is a major source of rural jobs in Bangladesh. Over 87 percent rural people derive at least some income from agriculture. However, two thirds of rural households rely on both farm and non-farm incomes. Pro-poor agriculture growth has stimulated the non-farm economy in Bangladesh: a 10 percent rise in farm incomes generates a 6 percent rise in non-farm incomes. As non-farm incomes continue to grow, the government needs to focus on fostering a more robust rural non-farm economy.

Realigning Priorities to Sustain Growth Into the Future

Today, the largest share of public expenditure for agriculture goes to subsidies. At the same time, nearly half of the farmers are overusing chemical fertilizers, which create environmental and health hazards.

While rural non-farm employment is large -- almost double of total urban employment– and growing, non-farm businesses are not expanding or diversifying fast enough.

Even though the market is functioning well, more investments are necessary to upgrade market facilities,  improve food safety systems, and help traders of high value products access working capital.

Bangladesh has great potential to raise agriculture-generated incomes, increase agriculture productivity and make it more resilient to climate change, and improve the nutritional value of crops. As the study suggests, the country should focus on the following action areas:

  • A balanced development strategy should be developed for both farm and non-farm growth.
  • More rapid diversification in agriculture—with balanced attention to rice. Diversification into high value agriculture is a priority. This includes ensuring balanced incentives to promote high value agriculture that includes horticulture, livestock, poultry and fisheries.
  • Further improving the policy framework and rebalancing public expenditure priorities. More investment is required in research and extension services, markets and infrastructure. Regulatory and institutional constraints should be removed for encouraging private sector participation in the seed sector.
  • An enabling environment for robust rural non-farm growth and more efficient value chains. For non-farm growth to flourish, it is essential to make it easier for enterprises to do business. Access to finance, power, roads, technology and information along with removing discriminatory taxes and stifling regulations are needed. It is also important to ensure food safety standards, build modern market infrastructure and promote agriculture related non-farm enterprises such as trading and processing.
  • Continued investment in connectivity is needed to increase business jobs in smaller cities and rural areas which remain isolated.

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  • Bangladesh Agriculture: A Key Driver in Reducing Poverty, Must Diversify
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Fifty years of agricultural development in Bangladesh: a comparison with India and Pakistan

  • Original Article
  • Published: 18 June 2022
  • Volume 2 , article number  71 , ( 2022 )

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agriculture of bangladesh essay

  • Shahidul Islam   ORCID: orcid.org/0000-0003-4281-884X 1 ,
  • Subhadip Ghosh 2 &
  • Mohua Podder 3  

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Since its independence in 1971, Bangladesh has made remarkable economic progress, evolving from a low-income to a lower-middle-income country. Its agricultural sector remains essential for the economy and food and nutrition requirements despite having a gradually declining share of GDP and employment. This paper examines various aspects of the agricultural growth of Bangladesh using different forms of analysis, including the use of a log-linear Cobb–Douglas production function. Empirical models include the ordinary least-squares method for investigating the agricultural growth in Bangladesh since independence and the generalized least square method for the cross-country comparison with India and Pakistan. We observe that Bangladesh underwent a typical sectoral transformation in employment and GDP growth, transferring labor from the low-productive agriculture sector to the high-productive manufacturing and service sectors. Such a transformation was due to the declining labor demand in the agriculture sector because of growing mechanization as well as the increased labor demand from rural off-farm activities and manufacturing and service sectors, resulting in enhanced rural wages and standard of living. The agriculture sector of Bangladesh, despite its continuously declining contribution to GDP, remains vital for sustained food and nutrition security and economic growth. The low values of calculated output elasticities from our regression results imply a limited growth possibility with the existing technology. Despite this and several other constraints, the agriculture sector has potential for growth by developing and adopting appropriate technology and realizing efficiency gains from proper input and output mixes. These need to be supported by appropriate policies and institutions. As land is a major constraint, less land-intensive subsectors like livestock and poultry should also be explored among the possible policy recommendations.

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agriculture of bangladesh essay

(Source: FAO  2021 )

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(Source: World Bank  2021a )

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(Source: authors own calculations based on data from ILO)

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Data availability.

Data used in this paper are mostly publicly available, and the authors cited the source. If required, the authors are willing to provide data if necessary.

Bangladesh has been implementing many safety-net programs which include both cash and in-kind contributions to the poor. The 100-day Employment Generation Program (100-DEGP) is one such program initiated in 2008. Food for Work was another well-known program introduced in 1975 (Osmani and Chowdhury 1983 ; Zhang et al. 2014 ; Mannan et al. 2018 ). In 2015, the Government of Bangladesh announced a comprehensive National Social Security Strategy (NSSS) to ensure a comprehensive social protection system for all (Khatun and Saadat 2018 ) and an important theme of the 8th Five Year Plan is “A broad-based strategy of inclusiveness with a view to empowering every citizen to participate fully and benefit from the development process and helping the poor and vulnerable with social protection-based income transfer;” (GED 2020).

Microfinance has been prevalent in Bangladesh. Since the establishment of Grameen Bank in 1983, both the number of subscribers and the number of disbursements increased exponentially (Khandker et al. 2016 ; Khan and Malik 2020 ). Khandker and Koolwal ( 2016 ) show that microcredit benefits low-income households by increasing agricultural income through livestock and off-farm income, but not crop income indicating an outward push of rural labor from agriculture.

Data on pesticide in Pakistan are obtained from several published sources including Tariq et al. ( 2007 ), Khooharo et al. ( 2008 ), and Khan et al. ( 2020 ). Data unavailable for few years were interpolated from the existing ones.

Bangladesh has several agricultural research institutes. These are Bangladesh Agricultural Research Institute (BARI), Bangladesh Rice Research Institute (BRRI), Bangladesh Institute of Nuclear Agriculture (BINA), Bangladesh Jute Research Institute (BJRI), Bangladesh Fisheries Research Institute (FRI), Bangladesh Forest Research Institute (BFRI), Bangladesh Sugar Research Institute (BSRI), Bangladesh Livestock Research Institute (BLRI), and Bangladesh Tea Research Institute (BTRI).

Empirical results are all over the map—negative, positive (Jawaid and Raza 2014 ; Salahuddin and Gow 2015 ; Amjad 2017 ; Mannan 2017 ; Zaman et al. 2021 ), u-shaped contribution (Hassan et al. 2016 ; Hassan and Shakur 2017 ; Kumar et al. 2018 ), causing Dutch disease (Roy and Dixon 2016 ), etc. Jawaid and Raza ( 2014 ) and Kumar et al. ( 2018 ) provided lists of previous studies with contradictory results.

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Islam, S., Ghosh, S. & Podder, M. Fifty years of agricultural development in Bangladesh: a comparison with India and Pakistan. SN Bus Econ 2 , 71 (2022). https://doi.org/10.1007/s43546-022-00240-3

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agriculture of bangladesh essay

After independence, the agriculture sector was Bangladesh's main economic driving force. Its contribution to GDP was around 60 percent. Agriculture in Bangladesh is vital for people's livelihood, employment, and contributing to GDP; we all know that. Its contribution has reduced over the last decade, going from 17 percent in 2010 to 12.6 percent in 2020. The sector is at the centre of our economy, decreasing poverty and ensuring food security. However, with the ever-growing population, going from 147.6 million in 2010 to 164.7 million in 2020, added by the blow of the pandemic and climate change, the sector has continued to be resilient in terms of profitability and productivity.

I still remember international organisations referring to food riots in Bangladesh back in 2007-2008, but we have beaten their assumptions and proved them absolutely wrong; the same way, during Covid-19, agriculture as an individual sector has contributed and supported the people and state of Bangladesh relentlessly. Bangladesh is one of the most densely populated countries globally, with a density of 1,239.7 people living per square kilometre (2018)—its land is decreasing as population grows rapidly. The characteristic of a modern economy is to grow through the industrial and service sectors. This has been observed gradually in the farming sector as well. The economy has also been integrated with the global economy. We have been on the road to a self-reliant growth effort that has become a great example in the world.

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The GDP contribution came down for mainstream farming, while the service and industry sector's contribution increased as people started migrating to the cities from the villages. The service sector was added to the farming sector. Only the mainstream farming sector was regarded as the main source of economic development. Afterwards came the sub-sectors of farming. On the one hand, we could see the boom in food grain production, especially due to rice varietal developments, and on the other hand fisheries, poultry, livestock and dairy turned into huge economic source. All these sub-sectors started taking shape as commercial farms in the hands of youth and progressive women entrepreneurs, not just amateur ventures. In respect to the mainstream farming sector, the GDP came down, but the significance of farming as a whole, including the sub-sectors, service and industry sectors, have increased manifold. High-value fruit orchards and vegetables also played a significant role in the economic boom. Not only the farms, but the value addition of the agricultural products came in as a booster for the agricultural service sector. Say, for example, PRAN, ACI; these huge agricultural industrial companies played a key role as well. Besides, the small scale agro-processed and agro-dependent industries played a part in the value addition.

agriculture of bangladesh essay

Former Finance Minister Abul Maal Abdul Muhith used to say that, including the service and industry engaged with the farming sector, the GDP contribution of it is nearly 40 percent. Agricultural production value has increased at 3.54 percent per year in the last two decades (1999-2019). The sector remains the main source of employment, as I have mentioned earlier, providing livelihood to 40 percent of the labour force. Thus, agriculture remains the largest sector in terms of employment.

The other indirect contribution of agriculture is to provide basic raw materials for industrial processing. Immediately, jute comes to mind as an example of a product of the agro-processing industry. And at present, many agro-processing industries are fully dependent on agriculture for basic raw materials which include rice milling, sugar, tea, fruit juice, spices, etc. In the FY2020-21, the total production of grains was 455.05 lakh (45.505 million) metric tonnes, potato 106.13 lakh (10.61 million) metric tonnes, pulses 9.39 lakh metric (0.94 million) tonnes, onion 33.62 lakh (3.36 million) metric tonnes and jute 6.25 lakh (0.62 million) bales. BRRI (Bangladesh Rice Research Institute) must be credited for the grain production which has been quite remarkable. Alongside the production, the research didn't stop for a day and with responsibility, it moved ahead with the support of BARI (Bangladeshi Agricultural Research Institute). How can I not mention BINA (Bangladesh Institute of Nuclear Agriculture) as they are primarily mandated to make peaceful use of nuclear and advanced techniques to boost agricultural production and develop technologies that are environment-friendly as well as sustainable. Once upon a time, we used to import capsicum and today we're growing it here on our soil.

Now, the five-star hotels and many restaurants around the country collect foreign vegetables from inside the country, which is saving a lot of foreign currencies and many people are employed through producing such crops.

The same goes with the Qurbani season. We used to import livestock but today we're meeting this demand with our own efforts. Father of the Nation,Bangabandhu Sheikh Mujibur Rahman initiated subsidy support in farming, especially fertilisers, in his policy planning to ensure food security. It is still being followed. The infrastructure Bangabandhu built for seeds, irrigation and agricultural extension has helped us a lot. This is a huge service sector today. Most importantly BADC (Bangladesh Agricultural Development Corporation) has worked well with the high yielding variety seed, that is why Bangladesh is experiencing such crop diversity with huge productions. The question comes in, did the lifestyle or standard of the people involved with farming change? I would say, the farming sector has individually employed more than 40.6 percent people still, directly or indirectly. Previously, farmers were really poor, but today, their fates have changed with their relentless labour and definitely with quality seed support. The change has taken place because they are getting more production because of the seeds and more money than in the past. It means farmers' buying capacity has also increased. They can now feed themselves and their families, send their children to school. However, the question still rises: what is the quality of food they are eating? What is the quality of clothes they are wearing? What is the quality of education their children are receiving? We have to bring these issues into focus. If only they could get a fair price for their produce, they could have good quality life, food and clothing. The media has also played a vital role in bringing out the real facts and figures and the causes and prospects of farming and farmers over nearly 50 years. Today, with the help of mass media and also digital media platforms, a lot of farmers can share, exchange and learn from the experts and replicate the best examples or learn about the new trends and crisis inf farming.

Another aspect is the three driving forces of our economy, i.e., farming, RMG and remittance—in all these sectors, the sons and daughters of farmers are working. And they're sending money to their parents in the villages. And this money is being invested in farming, either at small scale or in large scale farming initiatives. This has not only strengthened our economy but has empowered the youth, especially the women. Moreover, agricultural tourism has opened a new door for us. I have seen in many European countries and USA the concept of the family farm. In Bangladesh, young entrepreneurs have started wonderful eco-resorts across the country and people from around Bangladesh are going to these beautiful places where they can come close to nature. There are many resorts very near to Dhaka even where you would find resorts being built, keeping the farming environment in mind so that the visitors can go and enjoy the rural setting. During the past decade, there have been so many resorts built in this manner and concept, which is really a positive approach.

agriculture of bangladesh essay

Climate change is a big challenge, which we have to face with the facilitation of new agricultural technologies and adaptability. Farmers have to be provided with technologies based on their local climate change scenarios. We must come up with new seeds based on salinity and other adversities. We can't make anyone a climate refugee, rather we must try to make their life accommodating with the given changes. We must follow global adaptation technology and concentrate more on new examples of climate adaptability which fit our settings. More emphasis on agricultural mechanisation and ICT in farming should be given. This will help us to fight climate change. In the same way, we should also focus on the weather-based index, crop insurance which will ensure real empowerment of farmers and will make them more resilient. We have to make sure that new technologies of the sub-sectors of farming are being adopted and used skilfully. The challenge of the government would be to ensure that these new technologies reach the farmers, as well as the subsidies.

As the prices of the fertilisers increased across the world, the amount of subsidy has now gone up to Tk 22,000 crore (USD 2569 million). If the prices increase further, then how would the government manage equality among farmers and industries? How would they make up the fiscal gap? The course curriculum of higher studies in agriculture should be organised keeping in mind the fourth industrial revolution (4IR). Those who would train the students and farm-level officers must be able to get global-standard training (ToT) so that they can properly teach others. After completion of studies, I am sure this new generation of students could work more effectively in the field and assist the farmers with easy and handy solutions, with help of the best and most advanced technologies with government support. We must give importance to all the components of the fourth industrial revolution. Since building a "Digital Economy" is a must for implementing Prime Minister Sheikh Hasina's Vision 2041, Sheikh Hasina Institute for Frontier Technologies and hi-tech parks are being set up to develop the next generation with skills to face the 4IR. We must build our skilled human resources to handle these initiatives.

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The Bangladesh Journal of Agricultural Economics

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The Bangladesh Journal of Agricultural Economics is an official publication of Bureau of Socioeconomic Research and Training (BSERT). BSERT publishes original full length papers and review articles from all areas of Agricultural Sciences and reflecting the considerable and continuing changes with particular emphasis on interdisciplinary studies from authors throughout the world. BSERT is a peer-reviewed journal published quarterly (June and December) in a year.

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ISSN (Print): 0257-3539

RFI: USAID/Bangladesh’s Feed the Future Sylhet Agricultural Development Project

The United States Agency for International Development, Bangladesh is in the process of gathering information to support anticipated activity design for the USAID/Bangladesh’s Feed the Future Sylhet Agricultural Development Project.

USAID’s Feed the Future (FTF) program accelerates agriculture sector growth to supplement the Government of Bangladesh’s food security and economic growth initiatives. The FTF program in Bangladesh focuses on agricultural research, extension, value chain development, climate resilient agriculture, mechanization, agricultural infrastructure, trade, and private sector competitiveness, agriculture-sensitive nutrition, and responding to communities impacted by the Rohingya refugee crisis. Since its inception in 2010, FTF Bangladesh investments have focused on 23 districts in southwest and southeast Bangladesh. Over the past decade, the program has made remarkable progress in terms of developing nutrition-sensitive value chains related to dairy and fish production, equipping millions of farmers with new skills and knowledge, strengthening women’s empowerment, and partnering with the private sector to expand access to high-quality agricultural inputs and services. Under the new Global Food Security Strategy (GFSS) Bangladesh Country Plan, USAID’s FTF program will extend its reach into the Sylhet Division due to the region’s food security needs and potential for agriculture-driven development, and to address the region’s susceptibility to climate change and high poverty and malnutrition rates.

Response Date: May 6, 2024

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Essay on Bangladesh

Students are often asked to write an essay on Bangladesh in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Bangladesh

Introduction to bangladesh.

Bangladesh is a country in South Asia. It is next to India and Myanmar. The capital city is Dhaka. The official language is Bengali. It is known for its rich culture and history.

Geography of Bangladesh

Bangladesh is mostly flat with rivers and hills. It has a tropical monsoon climate. The country has many rivers including the Padma and the Meghna. These rivers are very important for farming and transportation.

Population of Bangladesh

Bangladesh is one of the most populated countries in the world. People here are known as Bangladeshis. Most people speak Bengali and follow Islam. There are also many different ethnic groups.

Culture of Bangladesh

Bangladesh has a rich and diverse culture. It includes literature, music, dance, and art. The country also celebrates many festivals like Eid, Pohela Boishakh, and Durga Puja.

Economy of Bangladesh

Bangladesh’s economy is growing fast. It is known for its garment industry. The country also grows a lot of rice, jute, and tea. Many people work in farming, but services and industry jobs are increasing.

Bangladesh is a unique country with a rich culture and history. It has a growing economy and a diverse population. Despite facing challenges, it continues to develop and prosper.

250 Words Essay on Bangladesh

Introduction.

Bangladesh is a country in South Asia. It is surrounded by India, Myanmar, and the Bay of Bengal. Bangladesh is famous for its rich culture, history, and natural beauty.

Bangladesh is a land of rivers. It has more than 700 rivers, including the Padma, Meghna, and Jamuna. These rivers play a big role in the country’s economy and culture. Bangladesh also has the largest mangrove forest in the world, the Sundarbans.

The culture of Bangladesh is very rich and diverse. The people of Bangladesh celebrate various festivals such as Pohela Boishakh (New Year), Eid, and Durga Puja. The traditional music and dance forms, like Baul and Jatra, are very popular.

The economy of Bangladesh has been growing rapidly. The country is one of the world’s largest producers of textiles and garments. It also has a strong agriculture sector, with rice and jute being the main crops.

Bangladesh, with its rich culture, natural beauty, and hardworking people, is a fascinating country. Despite facing many challenges, it has shown great resilience and is making steady progress in many areas.

500 Words Essay on Bangladesh

Bangladesh is a small and beautiful country in South Asia. It is bordered by India on all sides except for a small part in the southeast which borders Myanmar. Bangladesh is known for its rich culture, history, and natural beauty.

Bangladesh is mainly a flat land with fertile soil. It has the largest delta in the world, formed by the mighty rivers Ganges, Brahmaputra, and Meghna. These rivers make the soil very fertile, which is great for farming. The country is also known for its beautiful green landscapes and many water bodies. The Sundarbans, the largest mangrove forest in the world, is located in Bangladesh and is home to the Royal Bengal Tiger.

The history of Bangladesh is rich and ancient. It was once part of the powerful Maurya and Gupta Empires. Later, it was ruled by the Mughals and the British. In 1947, when India got independence from British rule, Bangladesh became a part of Pakistan and was known as East Pakistan. But after a long struggle and a nine-month-long war in 1971, Bangladesh gained its independence.

Bangladesh has a rich and diverse culture. The people of Bangladesh are known for their love of music, dance, and art. The traditional dance forms and music like Baul and Marfoti are very popular. The country also has a rich tradition of folk literature. The main festival of Bangladesh is Pohela Boishakh, the Bengali New Year. The people of Bangladesh celebrate this day with great joy and enthusiasm.

The economy of Bangladesh is growing rapidly. The main occupation is farming, with rice being the main crop. The country is also one of the largest producers of jute, a plant used for making rope and sacks. In recent years, the garment industry has grown a lot and has become a major part of the economy. Bangladesh is now one of the world’s largest exporters of garments.

Bangladesh is a country of great potential and beauty. Despite facing many challenges like natural disasters and overpopulation, the people of Bangladesh are known for their resilience and hard work. With its rich culture, history, and natural beauty, Bangladesh is a country that has a lot to offer. It is a country that is moving forward with hope and determination.

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Short Composition on Agriculture in Bangladesh

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Agriculture: Our Productions

Agriculture: our economy, agriculture: its importance.

Introduction: Bangladesh is mainly an agricultural country. About 85% of our total population depends on agriculture directly or indirectly. The soil of Bangladesh is fertile and its climate is favourable for an agricultural product.

Importance of our agriculture/various kinds of agricultural products: rice and jute are the main agricultural products of our country. Rice is our principal food and jute is our main cash crop. Other valuable crops are various kinds of pulse, sugarcane, betel nut and betel left, vegetables are also important among the products of our country. The commonest of them are potato, brinjal, onion, garlic, radish, and pumpkin.

Cause of backwardness in agriculture : the soil of Bangladesh is very fertile. It seems strange to think why the agricultural output of this land is low. So the peasants and hardly procure two meals a day. They are ill-clad and ill-fed. They fall easy victims to disease and cannot give proper medical aid to themselves and their children. They are ignorant of the scientific methods of cultivation and farming.

Way to improve our agriculture: it is the first and foremost duty to impart agricultural education to our peasants. Night schools should be established in every village for adult education. They should be taught to use scientific methods of cultivation. Sub-divisions of land should be stopped by making law. The land should be ploughed by tractors.

Conclusion: in view of the fact that agriculture is the backbone of our national economy, top-priority should be given for the development of our agriculture. The government of Bangladesh has undertaken various programs for the improvement of agriculture.

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  1. Agriculture in Bangladesh

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  10. PDF Fifty years of agricultural development in Bangladesh: a comparison

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    Its contribution to GDP was around 60 percent. Agriculture in Bangladesh is vital for people's livelihood, employment, and contributing to GDP; we all know that. Its contribution has reduced over ...

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  24. Short Composition on Agriculture in Bangladesh

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