Light engineering drives Bogura’s economic pulse

The remarkable success of Bogura's light engineering sector has not only revolutionised local manufacturing but also reintroduced the region to both national and international markets. What began as a grassroots movement has now evolved into an industry built around nearly a thousand small and large factories, collectively generating an annual market worth approximately Tk1,500 crore in agricultural machinery and light engineering products.

This industry supports the livelihoods of hundreds of thousands of people, both directly and indirectly. Known as the commercial capital of northern Bangladesh, Bogura is responsible for producing the majority of the country's agricultural machinery.

According to the Bangladesh Engineering Industry Owners Association, around 80% of all agricultural machinery used in Bangladesh is manufactured in Bogura, with annual sales running into several thousand crore taka. By acting as a substitute for imports, the sector saves at least Tk 1,000 crore in foreign exchange each year.

The range of machinery produced is vast. From parts for power tillers and other tilling equipment to lathes, sawmills, auto rice mills, flour mills, and textile machinery—the list goes on. The district also produces automotive springs, brake drums, pumps, grinding machines, oil mills, jute mill equipment, and, more recently, combine harvesters, automobile components, train wheels, railway engine brakes, and steel parts. Hundreds of other items, such as paddy and maize threshers, potato grading machines, irrigation pumps, rice cutters, tilling machines, various filters, and drum seeders, are also manufactured locally.

Local entrepreneurs claim that Bogura produces 30% of the components used in diesel engines and power tillers, and as much as 95% of the liners and pistons used in engines across the country.

Estimates suggest there are around 1,500 light engineering and agricultural machinery factories in the district. Within the BSCIC industrial estate, 71 out of 87 operational plots house such factories. Among them, nine foundries focus on producing irrigation pumps and tube wells, while the remaining 62 manufacture a wide range of engineering and agricultural parts.

As demand continues to grow, manufacturers are becoming increasingly ambitious, producing newer tools and components not only for agriculture but also for other sectors. This has created significant market opportunities both domestically and internationally. Today, Bogura is often referred to as the cradle of Bangladesh's light engineering industry.

Industry insiders note that this sector, active for over 70 years in Bogura, is now poised to become one of the country's major export earners.

Take Bogura Motors, for example. For the past 33 years, this company has been producing a variety of engine filters in the BSCIC area. These filters are now sold beyond Bangladesh's borders, and the firm continues to grow. Plans are already in motion to expand exports to countries across the Indian subcontinent.

Bogura Motors manufactures around 400 different types of filters, from those used in motorbikes to those required in large compressor engines. Company Director Dr Tahmidul Islam commented, "Production costs have gone up due to intense global competition. We face heavy taxes on the export of raw materials, and importing them is also expensive. This drives up our production costs. The government should reconsider these tax structures. If they are lowered, we could export more and contribute more in terms of revenue."

However, the industry faces significant challenges. Factory owners highlight the steep rise in raw material costs. For instance, the price of ship scrap—commonly used as a raw material—has nearly doubled. Where a ton used to cost Tk28,000–33,000, it now sells for Tk53,000. 

Similarly, the cost of silicone has jumped from Tk100,000 to Tk300,000 per ton, and coal (boulder) from Tk50,000 to Tk85,000. These increases are making production more expensive and less efficient.

Traders are hesitant to invest in new inventory due to these high costs, resulting in unsold stock of previously manufactured items.

Md Zakir Hossain, General Manager of Gunjan Metal Workshop in the BSCIC estate, observed, "Despite these obstacles, this industry holds tremendous potential. Our agriculture-driven economy has created a strong market for engineering goods, and we're fortunate to have a skilled workforce. Many technically trained individuals are opening their own workshops and becoming self-reliant."

Entrepreneurs believe that with proper planning and government support, exports of Bogura's light engineering products could be scaled up significantly. The sector also offers substantial potential for increased investment, which would further stimulate rural economic development.

Rezaul Karim Reza, Managing Director of Reza Engineers, pointed out several industry bottlenecks. "The world is evolving rapidly, but we've struggled to keep pace with technological advancements in this sector. As a result, our product quality and production efficiency often fall short of global standards. Our reliance on expensive, imported raw materials and lack of stringent quality controls are major drawbacks."

Despite its outdated methods, the foundry business alone generates over Tk1,000 crore in annual revenue and employs hundreds of thousands in the district.

BSCIC has played a vital role in supporting the growth of this sector. AKM Mahfuzur Rahman, Deputy General Manager of BSCIC Bogura, stated, "Alongside yoghurt and red chilli, Bogura is now known for its light engineering industry. To take this game-changing sector forward, we must adopt modern machinery and technology, ensure quality training for workers and entrepreneurs, encourage local production of raw materials, and reduce reliance on imports. Most importantly, we must invest in research and development to innovate new products and improve existing ones."