Businesses target bigger share of $5.2t halal market, seek dedicated authority

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The Bangladesh Chamber of Industries (BCI) has proposed forming a Bangladesh Halal Development Authority to coordinate certification and other activities related to the sector

An aerial view of Chattogram Port. File Photo: Mohammad Minhaj Uddin/TBS

Highlights:

  • BCI proposes a dedicated Bangladesh Halal Development Authority
  • Bangladesh holds just 0.05% of the global halal market
  • Halal exports currently generate around $940 million for Bangladesh
  • Fragmented certification systems are hindering Bangladesh’s halal exports
  • International buyers increasingly demand traceability, quality and transparency
  • BCI seeks long-term policies, incentives and international recognition

Business leaders have called for a dedicated authority to streamline certification, testing and other facilities for halal food products with a view to capturing a larger share of the global halal market, which is estimated at $5.2 trillion.

The Bangladesh Chamber of Industries (BCI) has proposed forming a Bangladesh Halal Development Authority to coordinate certification and other activities related to the sector. The chamber has also recommended internationally recognised halal certification, accredited testing laboratories, skilled manpower development, and mutual recognition agreements with major halal markets.

The recommendations were submitted to the prime minister on 14 August as part of a policy guideline prepared after consultations with agro-product producers, business associations and government and private-sector stakeholders

Anwarul Alam Parvez, president of BCI, said the global halal market was worth around $5.2 trillion in 2026 and could reach $9.45 trillion by 2034, assuming an average annual growth rate of 12.4%. Bangladesh currently holds only 0.05% of the global market. If we can capture even 5%, halal products could become one of our major export sectors.

Bangladesh’s halal product exports currently stand at only around $940 million, according to Parvez.

“We want to change this situation,” he said, adding that BCI has prepared a comprehensive roadmap after holding a series of discussions with producers, associations and public and private stakeholders.

The recommendations have also been sent to the relevant ministers, secretaries and heads of government agencies, BCI said.

The chamber sees significant opportunities in the Middle East, Southeast Asia, Europe and North America, where demand for halal products is growing among the nearly 2 billion Muslims worldwide as well as among non-Muslim consumers.

Several Bangladeshi companies, including PRAN Group, Bengal Meat Processing, Akij, Square, Golden Harvest and Ahmadullah Agro Foods, are already exporting halal products. Most of the country’s halal export activity, however, has emerged through individual private-sector initiatives rather than a coordinated national strategy.

Fragmented certification holding back exports

Formal halal certification in Bangladesh began in 2007. The Islamic Foundation has been issuing halal certificates with assistance from Malaysia’s JAKIM since 2011, while the Bangladesh Standards and Testing Institution (BSTI) has also been providing halal certification since 2022 under OIC-SMIIC standards.

BCI argues that the absence of a single, internationally recognised authority is creating difficulties for exporters.

The chamber further recommended mutual recognition agreements with potential markets including Malaysia, Indonesia, the Maldives, Saudi Arabia, the United Arab Emirates and Qatar.

Technical assistance could also be sought from relevant authorities in Malaysia, Indonesia, the UAE and Saudi Arabia, as well as OIC-SMIIC, to improve Bangladesh’s halal production and certification capacity.

Bengal Meat Chief Executive Officer Ahmad Asif said international buyers increasingly wanted traceability throughout the production process rather than merely a halal logo on the packaging.

“They want information from the birth and rearing of an animal to its slaughter and packaging,” he said.

For meat products, buyers may seek information on the animal’s origin, feed, vaccination, health checks, slaughtering and processing. This means halal compliance is increasingly linked with quality, food safety, traceability and transparency.

‘Halal’ logo alone no longer enough

BCI said international halal buyers are becoming more demanding, with major markets increasingly requiring evidence that standards are maintained at every stage of production.

Kamruzzaman Kamal, director of PRAN Group, said the shortage of internationally accredited laboratories was making it difficult for Bangladeshi exporters to obtain the certificates required by overseas markets.

This can increase testing costs and delay shipments, reducing the competitiveness of Bangladeshi products.

BCI Director and Easy Food Chairman Zia Haider also raised concerns over the existing certification process, alleging that applicants are sometimes asked to provide vehicles and additional payments for certification-related services.

He alleged that payments are sometimes demanded based on the volume of products a company plans to export.

“Foreign buyers sometimes prefer not to obtain certification after hearing about the additional costs. Instead, they ask exporters to simply put ‘halal’ on the product packaging,” he said.

He called for a simpler and more transparent certification system and argued that halal certification should be provided free of charge.

Long-term policy support sought

BCI has also proposed creating a separate “halal HS code” alongside existing HS codes to identify and measure halal exports more accurately.

It recommended organising national and international halal fairs in Bangladesh and ensuring greater participation by local businesses in international halal trade fairs.

The chamber also called for a coordinated initiative involving the ministries of industry, commerce, foreign affairs, religious affairs, finance and planning, along with relevant public and private organisations.

A national halal policy should be formulated to create a long-term halal ecosystem, it said.

BCI has proposed 10-15 years of policy support and incentives for investors in halal production and exports, alongside specific export targets for 2034 and 2040.

Source: The Business Standard

Read More at: csslbd.net

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