Driving the growth of agricultural mechanisation in Bangladesh

Bangladesh requires the combined success of all sectors as it inches closer towards its goal of becoming a middle-income country. Although its GDP contribution has fallen to 12 percent as of 2020, agriculture still remains the most important sector since it employs around 50 percent of the population and ensures the country's food security. 

The sector's fall in GDP contribution is due to the low productivity of labour. The agriculture sector in Bangladesh is heavily dependent on manual labour, which tends to be both expensive and inefficient. It is estimated that the cultivation of one bigha (33 decimals) of land using a manual plough costs around Tk 2,000. If done by a tractor, the cost would fall to Tk 600. It is estimated that mechanisation can save around 30 percent of time and labour while also ensuring less seed and fertiliser wastage. Overall production can be increased by approximately 15 percent.

Mechanisation in the agriculture sector of Bangladesh began in the 1960s with the introduction of tractors, power tillers and deep tube wells, but we are yet to reach the expected level due to various problems such as fragmented lands, poor buying capacity of farmers and lack of quality machinery. 

However, there are some trailblazers who have been trying to address this gap. The Metal (Pvt) Ltd is one of them. The company, founded in 1987 as a manufacturer of buses and trucks, switched over to the field of mechanised agriculture. They started importing tractors from Indian manufacturer Tractor and Farm Equipment Company (TAFE).  While they initially struggled to sell their tractors, their dedication to ensuring the mechanisation of the agriculture sector helped them persist. 

Besides tractors, the company now sells combined harvesters, transplanters, rotary tillers and power generators. They also sell spare parts and tires.  As of 2020, Metal has sold over 50,000 tractors and 10,000 other agricultural machines.

The greatest challenge for The Metal (Pvt) Ltd. has been the high cost of agricultural machineries.  Any single machinery can cost the buyer anywhere between Tk 10–30 lakhs. While the government has heavily subsidised all types of agricultural machinery by 50–60 percent, it can still be difficult for the average farmer to afford such an expensive product.

Engr. Sadid Jamil, Managing Director and Founder of The Metal (Pvt) Ltd., says, "The ideal bundle of machinery would include a tractor, combined harvester and transplanter. Getting all three would cost a significant amount of money even with the subsidies provided by the government."

The Metal (Pvt) Ltd. provides leasing and renting facilities for farmers to reduce the burden of purchasing machinery. The leasing facility allows the farmers to procure the machinery at a lower cost for a specific amount of time. 

However, collection of lease payment has been a challenge for the company, shares the managing director. 

He suggests that the government should encourage banks and financial institutions to create loan products for farmers to facilitate purchase of agricultural machineries. 

"We are seeing increasing popularity of our tractors and harvesters amongst the farmers; now it's a matter of making the product more affordable for them," adds Sadid Jamil. 

A key focus for Metal has been providing quality customer service. To ensure that they have established Metal Parts Ltd. which provides equipment servicing and replacement products for all of their machineries. 

Going forward, The Metal (Pvt) Ltd. aims to maintain its foothold at the forefront of the industry while simultaneously pushing the agenda of mechanisation in the agriculture sector. 

"When speaking to the officials of the Ministry of Agriculture, we have noted a keen interest among them regarding the mechanisation process. They have encouraged us to switch from importing to domestic assembly and production, and we are definitely keeping these in our plans for the future," shares Sadid Jamil.