Bangladesh yesterday demanded the withdrawal of a bar on seed imports from India to boost bilateral cooperation in the agricultural sector.

Agro mechanisation, improving the quality of yields and food products could be potential fields for cooperation between the two countries, said officials from Bangladesh.

"Bangladesh will appreciate if India removes its export barrier on seeds," said Muhammad Abdur Razzaque, agriculture minister.

"We would like to see more cooperation in agro processing. Indian companies can set up manufacturing plants in our economic zone," he added.

The minister was speaking at the 'India Bangladesh digital conference on agriculture sector', which was followed by a business-to-business session, according to a statement from the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).

The conference was jointly organised by the FBCCI and Confederation of Indian Industries (CII). India is not just a neighbour but also a good friend of Bangladesh, Commerce Minister Tipu Munshi said at the discussion.

"India is the second largest trade partner of Bangladesh but the trade balance is in India's favour."

The minister also said the Indian anti-dumping duty on export of jute to Indian markets from Bangladesh has been adversely affecting the country's jute sector.

"Bangladesh is India's biggest trade partner in south Asia. The partnership is a role model in this region," said Piyush Goyal, Indian minister of commerce and industry, railways and consumer affairs, food and public distribution.

The Indian minister, who joined the discussion through a virtual platform, said he strongly believes that agriculture has the potential to play a big role between the two countries.

Bangladesh is one of the top three markets for Mahindra, said Pawan Goenka, chairman of the CII National Mission on Aatma Nirbhar Bharat and managing director and CEO of Mahindra & Mahindra.

"We want to make it number one," he added.

No two nations are like Bangladesh and India in this world, which are built on human ties and remain bonded in terms of heritage, culture and anthropology, according to FBCCI President Sheikh Fazle Fahim.

These ties will be cherished and honoured for generations to come, he said.

"Bangladesh's private sector procures multi-billion-dollar worth of value chain inputs from India which have higher prospects and we want to jointly work to move towards a sustainable trade balance."

"This will be possible through joint ventures, industry diversification and market diversification. And we are confident that we can achieve many goals through stronger public private engagement beyond our borders," Fahim added.

Vikram Doraiswami, Indian high commissioner to Bangladesh, said agriculture is a key sector for both countries.

TV Narendran, president-designate of CII and CEO and managing director of Tata Steel, said the two countries can jointly target the economies of the east to diversify exports.