Bogra seizes Indian market for irrigation equipment
Centrifugal pump exports from Bogra are gaining popularity, as the sector provides irrigation equipment at competitive prices.
India has placed orders for 20,000 pieces of centrifugal pumps for the item's export by December, according to the industry people.
“There is ample scope for the export of centrifugal pumps and other iron products to India, China and some other countries. However, we are not able to make products in quantities as per demand for now. Because we have some limitations, such as absence of running capital, modern equipment and government support," said Ainul Haque Shohel, the president of Bangladesh Foundry Owners Association.
The trade body's secretary, Abdul Malek, complained, “Following the media coverage, the government has reduced taxes from 15 percent to 7 percent for the sector. But the foundry and light engineering workshop owners have to bear additional taxes. VAT and other sources of government revenue from this sector is much higher, in comparison with India.”
The government should withdraw the VAT from the foundry sector to help the light engineering sector flourish and encourage the export of agro based equipment, he suggested.
Centrifugal pumps are exported to India at $18 to $20 per unit, whereas the same product in India is being sold at $88 each, according to Shohel.
According to a survey by the industries ministry, the Bogra based foundry and light engineering workshops meet 90 percent of the local demand for agricultural equipment.
The sector is now providing metal equipment for the garments, transport, textile, jute and other sectors, reducing import dependency, Malek said.
Azizur Rahman Milton, owner of Milton Engineering, said demand for centrifugal pumps has increased because of better quality and lower price of the products.
The industry sprang up about 24 years ago in the district of Bogra, which primarily produced pans and other iron made equipment.
The total turnover of the industry is now Tk 400 crore a year.
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