The interim government of Bangladesh has included juice and drinks made from locally sourced fruit pulp to a list of agricultural goods and processed agro-products eligible for a 20 percent cash incentive on their export. 

Bangladesh Bank issued a circular to this end yesterday.

The facility can also be availed by firms partnering with the exporter by sourcing the fruit pulp from within the country, according to the circular.

The 20 percent cash incentive is provided on the export of pastes, bars, canned goods, dehydrated goods, juices, and drinks made from fruits and vegetables.

This decision will boost agro-processing industries, diversify the country's export portfolio, and benefit rural farmers and entrepreneurs, according to experts.

Apart from that, this new incentive is expected to encourage the use of local produce in value-added products for export.

Although Bangladesh is an agricultural country, its agricultural product exports grew at a slower pace compared to overall exports over the past decade due to a lack of policy support, high costs and the absence of good agricultural practices.

Exports of agricultural products amounted to $536 million in fiscal year 2012-13, and it rose by 57 percent to $843 million by the end of fiscal year 2022-23.

Bangladesh's overall export earnings stood at Tk 431,742 crore in fiscal year 2022-23 while it was Tk 376,976 crore the preceding year, according to the central bank data.