Agriculture provides food, feed, fiber and fuel and plays a key role in economic development of Bangladesh. However, it faces great challenges today as it has to confront climate change, loss of biological diversity, loss of soil fertility, water shortage, etc. In Bangladesh, agricultural land and water resources for irrigation are shrinking. Land is declining by 1% per annum and the land quality is deteriorating due to degradation of soil fertility (e.g. nutrient imbalance), soil erosion, soil and water pollution and increased soil salinity. There is non-regulated and excessive use of groundwater and very little effort to augment surface water. In order to produce more food for an ever increasing population, raw materials for agro-industries and higher income for farming communities from a decreasing land and water resources, it is necessary to develop existing agricultural production system into a more dynamic, market oriented and sustainable commercial sector by higher productivity and profitability through irrigation expansion, agricultural intensification, diversification, mechanization and value addition.