Bangladesh halal exports stalled by rival certification regimes

DHAKA, Bangladesh (MNTV) — Bangladesh’s efforts to expand its share of the fast-growing global halal market are being slowed by an unresolved dispute between two government bodies issuing halal certificates, a regulatory overlap that exporters say has raised costs, weakened credibility and limited market access.

According to the Daily Sun, exporters and policy analysts warn that competing certification systems run by the Islamic Foundation and the Bangladesh Standards and Testing Institution (BSTI) have created confusion for overseas buyers and forced companies to seek multiple approvals for the same products.

Under Bangladesh’s regulatory framework, the Islamic Foundation issues halal certification based on religious compliance, assessing ingredients, processing methods and slaughter practices against Islamic law. BSTI, by contrast, is mandated to certify product safety and quality, including laboratory testing for hygiene, composition and contaminants. 

Exporters say the overlap began when BSTI introduced its own halal-labelled certification alongside technical standards, effectively requiring businesses to obtain approval from both agencies for products destined for halal markets.

The global halal economy — covering food, beverages, cosmetics and pharmaceuticals — is valued at more than $7 trillion and is projected to reach $10 trillion by the end of the decade, driven by rising demand in the Middle East, Southeast Asia and Europe. 

Yet Bangladesh’s halal-labelled exports remain modest, with earnings of just under $1 billion in the 2024–25 fiscal year, according to official export data.

Industry representatives say the requirement to obtain parallel halal certificates has become one of the most persistent obstacles to scaling exports. Companies report that repeated audits, inconsistent standards and limited international recognition of Bangladeshi certificates have reduced competitiveness in price-sensitive and compliance-heavy markets such as the Gulf states and the European Union.

Government officials have acknowledged the problem and indicated that discussions are under way to streamline the system. The Ministry of Religious Affairs has argued that halal certification should remain under religious oversight, while technical testing should be confined to product safety and quality standards.

Exporters, however, say the absence of a single nationally recognized halal authority has practical consequences. Food processors and meat exporters often rely on foreign certifiers — particularly from Malaysia — to access premium markets, increasing both time and compliance costs. Others report that buyers remain uncertain about which Bangladeshi certificate carries international legitimacy.

The issue has also drawn attention as Bangladesh prepares for graduation from least developed country status, a transition expected to intensify competition and reduce preferential trade access. 

Analysts say even a small increase in global halal market share could generate significant export revenue, particularly for agro-processed foods and meat products.

Economists and trade specialists have called for a unified national halal framework aligned with internationally recognized bodies, combined with mutual recognition agreements with major halal authorities abroad. Without reform, they warn, Bangladesh risks missing out on one of the world’s fastest-growing consumer markets despite its natural advantage as a Muslim-majority producer economy.