Cheaper import hurts Bogra light engineering sector

Alauddin Belal has been running a light engineering workshop in the Railway Market of Bogra city for more than 30 years. He has been producing various kinds of engineering products, which have substantial demand in both local and international markets.
However, despite having huge potential, Belal cannot achieve the expected results due to the lack of sufficient fund, modern technologies, skilled manpower, inadequate space, uninterrupted electricity supply and import dependency.
"We know how potential the sector is but we cannot achieve the optimum due to the limitations and lack of policy support," Alauddin said.
He said, import dependency is also holding back him and others to go ahead.
"Though we produce quality products, we feel frustrated when we see that these products are also being imported from mainly China, Thailand and Taiwan," he pointed out.
Alauddin said that quality and longevity of his products are much better than those of the imported ones but as the price is a little cheaper, buyers naturally prefer the imported items.
"As the exporting countries have modern technologies and raw materials, their production costs become lower than us. But if we get some financial and technological supports, we will certainly be able to offer cost-effective products," he added.
He said the government should take initiatives to discourage import of such items.
Alauddin said his factory would also have produced some high-value products if required financial and technological supports were ensured.
Like Alauddin, there are about 1,000 light engineering workshop owners and 500 foundry owners are facing the same problems that impede the growth of this potential sector.
The major products they produce are piston and piston ring, liner, seed drill, thresher, shallow tube well, grain dryer, hand pump, centrifugal pump, insecticides sprayer, crankshaft, gear and pinion etc.
Talking to the FE, owner of Kamal Machine Tools Kamal Miah said if supports could be arranged, the light engineering industry of Bogra could have played a significant role in the country's economy.
Kamal Mia, also a joint general secretary of Bangladesh Engineering Industry Owners Association (BEIOA), said most of the manufacturers of Bogra mainly produce all kinds of agricultural parts, which they generally supply to local markets.
Such products are also going to some neighbouring countries via informal channels, he said.
"I appeal to the government to increase cash incentive, which is now 10 per cent only, to promote exports," he added.
Kamal Mia also insisted on arranging sufficient training as majority of workers are not well-trained though the sector needs skilled manpower.
"Besides technology and financial requirements, skilled manpower is badly needed to ensure product and price competitiveness", he said.
However, he said the lack of permanent location and sufficient space also pose a serious problem for the sector.
"We need a permanent site as we are here running our workshops on Railway lands on a lease basis. We have to leave the place if the Railway authority takes its lands back," he added.
He said that they have been demanding a separate specialised location for the light engineering industry near Bogra city for to along.
However, the SME Foundation has taken some initiatives including the provision for loans with easy terms and low interest rate, support for fuel-effective production and technological support on producing high-value products to promote the sector.
The Foundation also provides in-plant training to help produce skilled workforce for the sector.
Manager of the SME Foundation Masum Billah told the FE that the Foundation provides loan at around 9.0 per cent that benefits the manufacturers of the area immensely.
"A large number of workshop owners have expanded their business with loan of the SME Foundation," he added.
The Foundation also undertook different training programmes including 'Skill Enhancement Programme for Bogra Foundry Cluster through Improved Molding Practice' and some foundry level training.
The Foundation has also planned to conduct some training programmes in four foundries and two factories on special subjects this year.
Besides, it will also work on product and market diversification of the light engineering industry of Bogra.
The industry, located at the Railway Market, started its journey after independence. Around 30,000 skilled and semi-skilled workers - 90 per cent male and 10 per cent female-are engaged in the sector.
    wazeddu@yahoo.com