Modernising agriculture

Prudent measures are necessary to sustain and increase the current state of food production. It hardly needs emphasising that in order to make our production growth sustainable we need to adopt advanced technologies in the agriculture sector. In this regard, the government should take necessary steps to involve private sector and increase its investment in research and development of new technologies.

We are happy to note Agriculture Minister Dr Mohammad Abdur Razzaque calling upon India businessmen to set up agriculture manufacturing factories in Bangladesh and make spare parts for Bangladeshi farmers.

The minister also stated that the government has taken up a comprehensive plan to modernise and commercialise agriculture which continues to be the lifeblood of Bangladesh’s economy. Even now, agriculture is the main source of employment, providing livelihood to as much as 40 per cent of the labour force. There are many agro-processing industries which are fully dependent on agriculture for their basic raw materials.

India, which has benefitted greatly from the Green Revolution of the 1960s, has made rapid strides in modernising its agriculture. Indian start-ups now view agriculture as a sunrise sector with agricultural technology firms seeing immense scope in playing a big role in its development. These together have begun to attract the required investment in the sector that will be the key drivers in the days to come.

Bangladesh definitely has the potential to attract Indian investors. And this we believe would be mutually beneficial for the two friendly neighbouring countries.

Media reports suggest that the farming community of Bangladesh are more prosperous than ever before. Irrigation, use of modern technology, farm mechanisation and innovations in crop variety have all contributed to the digital evolution of modern-day agriculture. Farmers are producing high value commodities like vegetables and fruits.

Bulls and oxen were once sole means of preparing land, threshing paddy and other crops. Now, these activities are carried out using machines. Tractors are being used to till the land, small machines to thresh grains. This is an indication of the growing affluence of the farming community of the country. The government is also doing its part by providing incentives.

However the fact remains that most of these machines are imported putting a burden on the national exchequer. If more of these machines can be manufactured in Bangladesh not only will it lessen import dependency but also generate employment opportunities for many people.

Yet, things are changing for the better. Despite numerous limitations, agricultural machinery manufacturing sub-sector in Bangladeshis is growing. The sector has potential to make substantial contribution to much needed non-farm economic growth, employment generation, mechanization of on and off-farm agricultural activities, and as a whole orientation in the national development.

According to a recent study there are about 70 foundries, 800 agricultural machinery manufacturing industries and workshops, 1,500 spare parts manufacturing workshops, and about 20,000 repair and maintenance workshops engaged in agricultural machinery manufacturing in the country. The annual estimated market size of agriculture machinery 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 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.

The authorities concerned must provide the farmers the right tools and technology to achieve the desired success in the sector.