Abstract
Despite numerous limitations, the agri-machinery manufacturing sub-sector of
Bangladesh is growing quite satisfactorily and has potential to grow faster and
ability to make substantial contribution in much needed non-farm economic growth,
employment generation, mechanization of on and off-farm agricultural activities and
as a whole in the national development. This research made an attempt to take
account of agri-machinery manufacturers, importers, traders/wholesalers and
retailers, their associations, assess market potential and identify bottlenecks
associated with this sub-sector. Stratified random sampling technique was used for
identifying respondents in quantitative survey; while PRA, FGDs and Key Informant
Interviews were conducted for qualitative investigation. At present, there are about
70 foundries, 800 agri-machinery manufacturing industry and workshops, 1500
spare parts manufacturing industries and workshops, and about 20,000 repair and
maintenance workshops in the country. The annual estimated market size of agrimachinery and spare parts in the country is about US $ 802.3 million with an US $
105.2 million annual repair and maintenance service market, estimating an annual
total agri-machinery market size of about US $ 907.5 million of which local
production market share is about US $ 402.7 million. The spare parts market size in
the country is about US $ 309.3 million of which domestic production of spare parts
is estimated US $ 237.9 million. The significant shift in the supply of spare parts in
the country underlines the growth potential of the local spare parts manufacturing
sub-sector and potential for substitution of imported spare parts. Bogra has emerged
as the center of manufacturing agricultural machinery and spare parts especially for
irrigation pumps, threshers, maize shellers, piston, liner and numerous spare parts
of small diesel engines and machines, casting of machine components etc. and
counting about 80% of the local production in the country. However, infrastructures
for production of agri-machinery and spare parts in Bogra and elsewhere in the
country are still inadequate. The study recommended declaration of Borga and
Jessore as 'Agri-machinery districts' and establishment of special 'Agri-machinery
Production Zones (APZ) in these areas. To promote export market to SAARC and D8 countries, tariff and non-tariff restrictions could be waved on agri-machinery
through bilateral negotiations and border markets (hats) with India to be allowed for
agri-machinery sales.