ADB, Meghna Group sign deal to enhance Bangladesh's food security

The Asian Development Bank (ADB) and Tanveer Dal Mill and Flour Mills Limited, a member of the Meghna Group of Industries (MGI), have signed a $20 million loan agreement to support the construction of a greenfield state-of-the-art, energy-efficient flour milling plant in Bangladesh.

This new facility will double the MGI's wheat flour output and enable the production of quality wheat products while consuming 37% less electricity than existing plants.

The improved energy efficiency is expected to lower operational costs and reduce carbon dioxide emissions by approximately 8,200 tons annually.

The plant will produce 660,000 metric tons of wheat, contributing to domestic agriculture production and enhancing food security, said an ADB press release today.

"This project marks a significant step toward the advancement of sustainable industrial development in Bangladesh. By promoting energy-efficient technologies and improving product quality, ADB and MGI are directly contributing to the country's food security, food safety, economic resilience, and environmental sustainability," said ADB Director General for Private Sector Operations Suzanne Gaboury.

"Furthermore, the project is aligned with the Government of Bangladesh's goals of strengthening domestic agro-processing and reducing the energy intensity of key industries," added Suzanne.

The demand for wheat in Bangladesh has been steadily increasing, but domestic production has not kept pace. In 2022, the country consumed about 8.8 million tons of wheat, while local production exceeded only one million tons.

This reliance on imported wheat highlights the urgent need to expand domestic milling capacity. With the anticipated rise in demand for flour milling, investing in energy-efficient technologies will foster environmentally sustainable growth in this sector.

"The project will ensure food security, create additional employment opportunities for 160 individuals, foster relationships with 150,000 vendors in the SME sector, support market creation and industrialization, and more importantly, contribute sustainable GDP growth in the Bangladesh economy," said MGI's Chairman and Managing Director Mostafa Kamal.

"We are enthusiastic about working with ADB and this project demonstrates the group's commitment to due diligence and compliance," added Kamal.

Established in 1976, MGI is one of Bangladesh's leading and most diversified conglomerates, with interests spanning fast-moving consumer goods, building materials, chemicals, energy, packaging, and logistics.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members - 49 from the region.