Bangladesh meets 73 percent of its demand for spare parts by import, although there is an opportunity to produce those locally, a seminar in Dhaka was told yesterday.

The annual requirement for spare parts in the country is Tk 1,860 crore, of which Tk 1,360 crore worth parts are imported and the rest or 27 percent of the demand is being produced locally, Abdul Karim, managing director of Micro Industries Development Assistance and Services (MIDAS), said referring to a research.

According to the study, top 23 sectors that use spare parts the most are RMG-woven, RMG-knit, textile, spinning, jute, agriculture equipment and machineries, pharmaceuticals, fertilizer, sugar, and agro-processing industries, power plant, railway, and gas transmission plant.

Karim was speaking at a seminar styled 'Potential for Import Substitution of Spare Parts Production for 13 Selected Sectors in Bangladesh' organized by MIDAS in collaboration with the Bangladesh Industrial Technical Assistance Centre (BITAC).

According to the study conducted by MIDAS and sponsored by Japan International Cooperation Agency (JICA), the top five problems faced by spare parts producers of the country include inadequate technology, lack of access to finance, raw materials, utilities and skilled labour force.

“If proper initiatives are taken the demand for most of the spare parts for local industries are possible to manufacture locally, but it requires proper government support,” SM Al-Husainy, chairman of MIDAS, said.

The seminar was also told that the industry is scattered and very few people know on this kind of activities.

“There are many companies producing spare parts for jute mills but they are very scattered and isolated. When we require spare parts we cannot find the right one,” Mahmudul Haque, vice president of Bangladesh Jute Spinners Association, said.

BITAC is working to develop import substitute spare parts in the country. “We are receiving more orders for spare parts from local companies this year compared to the previous year,” Ashish Kumar Paul, director general of BITAC, said.

Nobuko Suzuki Kayashima, resident representative of JICA, Bangladesh Office, was also present at the seminar.