Resilience and innovation: Bangladesh's agricultural engineering sector adapts amidst challenges

Bangladeshi light agricultural engineering workshops have not only weathered various challenges, but have also implemented measures to advance their capabilities. Photo: TBS

The light engineering sector in Bangladesh, particularly in the area of agricultural machinery and spare parts, faced significant challenges due to the global pandemic and geopolitical events. 

These challenges have exacerbated the economic turbulence in the country. Despite these difficulties, the resilience and innovation displayed by the agricultural-based light engineering (ABLE) industry in Bangladesh are noteworthy. 

According to a 2019 report by Inspira Advisory & Consulting Ltd, approximately 2,000-2,500 workshops in Bangladesh are exclusively dedicated to manufacturing agricultural machinery and spare parts. This sector has been significantly impacted by the Covid-19 pandemic and the Russia-Ukraine war, which have created an atmosphere of economic uncertainty, leading to a decline in consumer spending and higher import costs for essential components. 

While the sector has experienced an estimated 40% decrease in sales compared to previous levels, the positive strides made by the industry are crucial. Despite adversities, many light engineering workshops in Bangladesh have showcased remarkable adaptability and innovation. In response to the changing landscape, these workshops have not only weathered the storm but have also implemented measures to advance their capabilities.

Adoption of environment-friendly technology

For the first time in Bangladesh, some ABLE enterprises in Bogra and Jashore have installed induction furnaces in their foundries instead of the coal-based furnace. This is a strategic move towards climate-smart sustainability for the light engineering industry. 

In 2022, S M R Agro Engineering in Jashore installed an induction furnace in the foundry. The workshop has a diverse range of agrimachinery products including seeder machines, maize shellers, BARI potato harvesters, power threshers, fruit spray machines, mini power tillers, flour mixers, cotton candy machines, winnower machines, spare parts of combine harvesters, and 4-wheel tractors. 

In a year, the organisation is selling about 4,000 machines and 15,000 spare parts of agrimachinery. Its annual sales turnover has surged to an impressive $590,476 (Tk6 crore 20 lakh). Among the products, the fodder chopper emerged as their best-selling product.

S K Mahfuzur Rahman (37), proprietor of S M R Agro Engineering, shared, "Initially, we struggled to balance with the economic turbulence. Gradually, we are increasing the sales by manufacturing agri machines and marketing them locally."

He added, "To produce qualitative products, we are taking necessary steps by replacing old workshop machinery to modern workshop machinery and the induction furnace is one of them."

Installation of advanced modern machinery

In the light engineering industry, for the first time in Bangladesh 3 ABLE enterprises—Rony Engineering, Al-Madina Metal Works, Reza Engineering—in Bogura have installed advanced modern workshop machinery like Computer Numerical Control (CNC) machines in the last year. 

This shift not only enhances the efficiency of production but also positions the industry to meet the growing demand within the agricultural sector. The use of locally made spare parts for agricultural machinery further underscores the sector's commitment to self-sufficiency and resilience.

The Integration of CNC equipment into Rony Engineering's operations is proving as a significant leap towards qualitative agrimachinery products made in Bangladesh. This resulted in impressive growth in the business's financial success. Turnover has grown from around $3.2 million (Tk35 crore) a few years ago to about $5.4 million (Tk60 crore) in mid-2023.

"The addition of a CNC machine to my workshop marks the fulfilment of a long-held dream. Despite requiring major investment and effort, this achievement opens exciting possibilities. I now envision growing a sustainable business that can better fulfil the requirements of the local light engineering sector," said Abu Bakkar Siddique Rony, proprietor of Rony Engineering. 

Gender integration for a sustainable workforce 

The inclusion of women workforce into Bangladesh's light engineering sector represents a significant advancement towards both sustainability and gender equality in the field. This inclusivity contributes to increased innovation, productivity, and resilience, all essential for sustained success.

In 2023, various regions with established or emerging light engineering sectors, such as Bogura, Jashore, and Faridpur, witnessed the training of around 376 women in skill enhancement areas such as grinding, painting, fettling, and foundry training for sand mould preparation. 

This initiative has been done by collaborative efforts involving government stakeholders like the Bangladesh Industrial Technical Assistance Center (BITAC) and development stakeholders like Cereal Systems Initiatives for South Asia—Mechanisation and Extension Activity (CSISA-MEA), funded by the USAID and led by International Wheat and Maize Improvement Center (CIMMYT). 

Rezaul Karim, proprietor of Reza Engineers of Bogura, expressed, "For the first time, women are actively involved in semi-formal positions in my foundry. Many without formal education are now opting for these roles, steering away from traditional jobs like maids. They see factory work as a more professional and respectable avenue, appreciating the structured schedule and professional atmosphere." 

By embracing the inclusion of women, the light engineering sector lays the foundation for a more collaborative, dynamic, and equitable future.

Bangladesh's light engineering sector faces a 35% rise in production costs from economic crisis and raw material hikes. Despite financial limitations, workshops perseveringly maintain operations, necessary for production. 

Though some sectors secured orders, highlighting resilience, growth opportunities exist via technology, modernisation, gender inclusivity, and local production. Government and stakeholder collaboration is key for financial support. Policy-level support from the government is necessary for sourcing quality raw materials to produce export-grade machinery. 

Nonetheless, agro-based workshops position themselves for increased market presence through their determination, innovation, and adoption of technology, even in challenging circumstances.

Owen Calvert works as project leader for the Cereal Systems in South Asia–Mechanization and Extension Activity (CSISA-MEA), CIMMYT Bangladesh.

Asmaul Husna works as Communication Analyst at CIMMYT Bangladesh. 

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the opinions and views of The Business Standard.