Bangladesh Agricultural University,
Mymensingh
Bijoy-71

Agricultural Mechanization: Policy
Lessons from Bangladesh
M. A. SATTAR MANDAL
Emeritus Professor of Agricultural Economics
Bangladesh Agricultural University
asmandal11@gmail.com
A presentation at the ReSAKSS-Asia regional conference on “Agriculture and
Rural Transformation in Asia: Past Experiences and Future Opportunities”,
held in Bangkok, Thailand on 12-14 December 2017.

3
Ag. Mechanization: Historical Pathway
1960-65 Government distributed 2238 LLP, 200 four
wheel tractors, 13,828 sprayers
After 1970 cyclone, international charitable
organization donated 135 tractors, 569 power tillers
Following 1988 devastating flood import liberalization
policy accelerated mechanization
Provision of modest subsidy to popularize farm
machinery

Growth of Mechanization
4
0
100000
200000
300000
400000
500000
600000
1977 1984 1989 1996 2006 2012
Number
Year
Tractor
Power tiller
Maize sheller
Thresher (ODT+CDT)
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1977 1984 1989 1996 2006 2012
Number
Year
Year wise number of agricultural machineries in Bangladesh
Deep Tube Well
Shallow Tube Well
Low Lift Pump

Policy Changes Influencing Ag. Mechanization
491
824
1085
1343
1956
3204
3661
4992
5212
0
1000
2000
3000
4000
5000
6000
A
r
e
a
(
'
0
0
0
h
a
)
Irrigated Area (000 ha)
Prior to 1979
- Public sector control on import &
distribution of irrigation equipment
1979- 84: Large- scale
privatization of agriculture
- STW import duties reduced, liberal credit
- Reduced public sector control
1987-- : Rapid expansion by
private sector
- Withdrawal of equipment import ban and
spacing regulation
- Removal of import duties & engine
standardization
- Credit and extension support
Continued liberal import
of engines pushed overall
mechanization

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STW provides 70% irrigation
70% STW owned by SF <1ha
About 90% land tilled
by 0.7 million power
tillers privately owned

7

8
Reaper and Mini-combined Harvester

0.3
2
0.75
0.89
0.61
1.83
5.7
2.02
2.5
1.7
0
1
2
3
4
5
6
Bangladesh China India Thailand Vietnam
Growth of Farm Power (KW/ha) uses of
Different Countries
1990 2013

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Recent Links- Reapers and Mini-Combines
Reapers saves 35% and mini combined harvester saves 52% cost
over manual harvesting (Ali, et al. 2017).
Reaper, 4.5-6.5hp, costs USD 2125, while mini-combine, 12.5-
20hp, costs USD 7000- 8750.
Farmers’ demand for mini-combine is higher than for reaper (3289
mini- combines against 2946 reapers during March-June 2017, DAE
source).
50%-70% price subsidy & ag. credit expansion explains part of the
current demands.
Growth of local service providers (LSP) and custom hire services
is becoming important.
M A S Mandal, 2017, BAU

What Do We Learn?
• Ag. mechanization has been a mainstream policy focus
of government – 5yr plans, ag. policy 2014,
mechanization road map 2016.
• Private sector has been the major actor in spreading
mechanization, has received conducive policy support.
• Bangladesh promotes small-scale handy affordable
‘good enough’ machines suited to small fragmented
farm structure.
• Bangladesh has not followed the green revolution model
of subsidized energy driven large-scale mechanization
followed by other countries.
11M A S Mandal, 2017, BAU

What Do We Learn (contd.)?
• Ag. mechanization has led to rapid growth of local
manufacturing, repair facilities, rural mechanic services,
supported by vocational training provisions largely in
private sector.
• Innovative contractual arrangements leads to
operational consolidation of fragmented holdings.
i.e. STW Irrig. water market, tractor and thresher hire
services.
• Rural road network, mobile phone services, rural
electricity support mechanization.
12M A S Mandal, 2017, BAU

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Thank you