Empowering farmers with ACI Motors’ mechanisation mission

When I look back at Bangladesh's progress in agricultural mechanisation, it's remarkable how far we've come. Today, ploughing is fully mechanised, irrigation is almost 100% mechanised, and even harvesting—although still growing—has reached around 15% mechanisation. To put this in perspective, five years ago, the horsepower used per hectare was 0.18. Now, it's 0.2, reflecting steady progress in modernising our farming practices.

At ACI Motors, we have focused on bridging the gap between traditional farming methods and modern machinery. For larger farmers, we offer high-powered solutions like our Sonalika tractors, while for smaller farmers, we provide a variety of power tillers to suit their needs. Today, our machinery supports cultivation across about 40% of Bangladesh's agricultural land. In harvesting, a segment that only started mechanising during COVID-19, ACI harvesters now dominate—with 65% of operating machines belonging to us, amounting to more than 4,000 units running across the country. Together, these cover about 10% of all harvesting activities nationwide.

Making mechanisation affordable for all farmers

One common misconception is that mechanisation is only for wealthy farmers. In reality, most farmers—regardless of their land size—access our equipment through rental services operated by local service providers (LSPs). For example, a single tractor can cultivate 10 acres (about 2.5 hectares) in a day, which is far beyond what most farmers individually own. This makes shared usage through rental services both practical and cost-effective.

To make these machines even more accessible, 95% of our sales are on hire-purchase schemes. For tractors, we offer up to 48-month installment plans, while harvesters can be purchased with 30 installments over 2.5 years. However, because banks are reluctant to directly finance farmers, ACI has had to fill this gap ourselves. Today, our credit portfolio stands at Tk 1,500 crore, larger than any bank's agricultural machinery financing in Bangladesh. In many ways, we are indirectly running our own bank—managing credit scoring, loan recovery, and financing logistics ourselves.

But this system isn't sustainable. Farmers need direct access to affordable loans. What we truly need is a refinancing scheme from Bangladesh Bank. If even a Tk 5,000 crore revolving fund were created specifically for agricultural mechanisation financing, and if each Upazila had one designated bank to manage it, farmers could get the loans they need without mortgaging land or navigating complex documentation. This would also free ACI from carrying the financial burden, allowing us to focus more on training, technology, and service delivery.

Training and building operator capacity

Selling machinery is only half the work—ensuring it is used efficiently is equally important. This is why ACI places strong emphasis on training. We operate a dedicated training centre near Dhaka, where we prepare operators and provide entrepreneurship training for local service providers. Before every peak harvesting season, we train harvester drivers in advance, ensuring smooth operations during critical periods.

Our after-sales support is equally robust. For tractors, we commit to providing service within six hours of a call. We employ over 400 service professionals across the country, supported by a central dashboard that monitors service requests in real-time. Because we offer three to five years of warranty coverage depending on the machine, we ensure that every customer receives timely and professional support. Even after warranties expire, 25% of customers continue to return to us because they trust our service quality, despite it being slightly more expensive than local workshops.

The challenge of financing and policy support

While we work closely with the government in subsidy projects as an enlisted vendor, the lack of structured financing remains a major bottleneck. Unlike neighbouring countries where agricultural financing is closely monitored and enforced, Bangladesh lacks a clear mechanism to track loan disbursements for farm machinery.

Farmers are the backbone of our economy, yet they don't enjoy the same financial accessibility that salaried employees do. You can purchase a car in Bangladesh with just a salary certificate, but a farmer cannot easily buy a tractor without mortgaging land—which most small farmers don't even own in sufficient quantity.

This lack of financing hampers not only farmers but also the entire agricultural ecosystem. With proper financial access, mechanisation could grow much faster, and companies like ACI could invest more heavily in research, training, and technology development rather than tying up resources in financing.

The reality of local manufacturing

There's often a question about why Bangladesh can't manufacture its own tractors and large-scale farm equipment. The truth is, global markets are heavily dominated by countries with established supply chains. India, for instance, produces over a million tractors annually, while our domestic demand is under 10,000 units. Competing in such a small market without a vendor ecosystem or efficient supply chain is impractical.

Harvesters are another example. China dominates this segment because it's a rice-growing nation with massive demand. Even Japanese companies produce harvesters in China to leverage its vendor network. Without similar infrastructure, local manufacturing here is not cost-effective.

That said, there is potential in smaller-scale equipment. For example, we can locally produce components like iron wheels for power tillers or parts for threshers. But even then, challenges such as high electricity costs, limited efficiency in labour, and lack of raw materials restrict scalability. Unless there's significant international investment or a major shift in industrial policy, large-scale agricultural machinery manufacturing will remain out of reach in the near future.

The road ahead for ACI Motors

Looking forward, we see Bangladesh's food consumption patterns evolving alongside rising incomes. While rice will remain important, demand for maize, potatoes, wheat, and proteins is growing quickly. To address this, we are test-marketing new equipment such as maize silage machines, potato harvesters, and transplanting machines.

We're also working on strengthening the cold chain through refrigerated vans. As diets become more protein-centric, efficient cold storage will be essential since proteins can't be preserved the same way grains are.

Another area we're investing in is technology and data. In partnership with Yanmar, we've developed sensors that track yield data down to the Upazila level for rice crops. We're also piloting agricultural drones for spraying—especially useful for maize cultivation—but policies around drone usage are yet to be formalised.

Over the next decade, our focus will be on integrating technology, improving access to finance, and diversifying into crops that align with shifting dietary habits. But to achieve this vision, stronger government collaboration is crucial.

If I could ask for one immediate policy intervention, it would be farmer financing. Affordable and accessible loans would transform agricultural mechanisation overnight. Alongside this, we need a clear roadmap that anticipates future food demand. For instance, rice demand won't grow significantly, but wheat demand is rising fast. We also import large amounts of garlic, ginger, and wheat—crops we can grow locally if we free up land by improving rice yields.

Bangladesh's young population is already moving away from rice-heavy diets toward bread, pasta, and protein-rich foods. Without a clear plan, this growing demand will strain our foreign exchange reserves through imports. But with strategic planning, efficient land allocation, and strong mechanisation support, we can meet these needs domestically.

At ACI Motors, we are committed to driving this change. Mechanisation is no longer optional—it is essential. And with the right policies, financing, and vision, Bangladesh's agriculture can not only meet domestic needs but also become more competitive and resilient in the years to come.