Study into the commercialization of selected agricultural machines in Bangladesh

Abstract

In recent years the pace of mechanization has accelerated in Bangladesh. This is largely due to reforms which were undertaken throughout the 1980s. Even after acceleration of mechanization in some specific areas such as tillage, irrigation, and threshing there are many areas which still require further mechanization. This can serve to achieve greater efficiencies such as resource conservation and unit cost reduction in crop production. Contrary to the farmer-ownership model which characterizes many developed country contexts, the high number and small size of farms in Bangladesh has led to the emergence of a service provision model whereby various small scale farm machines can be more easily accessed by small-holders. This model has seen high profile successes in the large number of service providers providing access to two and more recently four wheel tractors (2WTs; 4WTs), diesel engines for irrigation and various threshers which can be found in Bangladesh. The study contends that the most effective way to achieve an even higher level of farm mechanization is to align the incentives of the various market actors which operate in the market system. This can be achieved by development organizations understanding how to strengthen and build upon this service provision model. It is anticipated that this will lead to greater scale and sustainability. This report was prepared by International Development Enterprises (iDE) for the Cereal System Initiative in South Asia-Bangladesh (CSISA-BD)1 and International Maize and Wheat Improvement Center (CIMMYT). The study seeks to strengthen the CSISA initiative through providing context and direction for enhancing farm mechanization through commercialization in Bangladesh.There are two core objectives for the study: To provide an in-depth overview on the history, current status, and potential scope for enhancing farm mechanization through commercialization in Bangladesh; and, To devise a series of actionable recommendations that collectively will comprise a strategic roadmap for CSISA-BD and its strategic partners to accelerate scale-appropriate mechanization through market development approaches. To achieve these objectives the study employs a methodology which is based upon a ‘sub-sector analysis’ approach. This seeks to understand the various actors, products and services in the different value chains which make up a subsector. The study uses qualitative tools and instruments and acknowledges that a sample based quantitative study is insufficient to understand the nuances of market behaviors which characterize the subsector. This work involved exploring the backward and forward linkages of key market relationships and transactions in order to triangulate and verify information received from market actors. This “following the lead” approach led to engagement beyond the hub areas2 to adjacent regional and even national and international levels. In terms of structure, first the study presents a general picture of the context for mechanization in Bangladesh with a specific focus upon mechanization in the CSISA hubs areas. The report then outlines the key findings of investigation into the state of mechanization for notable machines which have spread either throughout the country, such as the 2WT and Threshers, or have experienced localized scale up, such as the two-wheel tractor mounted seed drill known as PTOS. Sections are designated specifically to 4WT, 2WT, Seeders, and Reapers, where both constraints and success factors are considered. Finally potential business models and interventions for scaling up agricultural mechanization are considered and recommendations provided for each of these key machines.