FMO, the Dutch entrepreneurial development bank, and PRAN-RFL Group have signed a USD 30 million financing facility aimed at strengthening Bangladesh’s agri-food value chain and supporting greater value addition, processing capacity, and export competitiveness.

Under the agreement, USD 10 million will be allocated to Banga Millers Limited and USD 20 million to Pran Agro Limited. The financing will support the acquisition and installation of advanced food-processing machinery, provide working capital for contract farming, and facilitate the import of essential food and agricultural commodities.

A key component of the partnership is its farm-to-market focus. The financing will support contract farming arrangements involving potato, rice, mango, and tomato farmers, helping strengthen linkages between agricultural producers and formal markets. At the same time, the investment is expected to enhance PRAN’s manufacturing capacity and improve its ability to serve both domestic and international markets.

The facility will also support the export of a wide range of Bangladeshi food products, including rice, puffed and flattened rice, toast, noodles, spices, sauces, mustard oil, confectionery, and pickles. By expanding processing capabilities and supporting export-oriented production, the financing has the potential to contribute to greater value addition within Bangladesh’s agricultural sector.

The partnership highlights the role development finance can play in bringing together private investment, technology, knowledge, and trade to strengthen agri-food systems. It also reflects a broader shift from primary production towards more competitive value chains, stronger farmer-market linkages, efficient processing and logistics, and higher-value exports.

Beyond its sectoral impact, the agreement represents another step in the growing commercial and economic relationship between the Netherlands and Bangladesh. Agriculture, food processing, technology, finance, and trade remain important areas where collaboration between the two countries can continue to deepen.

The financing agreement between FMO and PRAN-RFL demonstrates how targeted investment can simultaneously support farmers, strengthen industrial capacity, and expand Bangladesh’s presence in international food markets.

Source: Embassy of the Kingdom of the Netherlands in Bangladesh