Mini industrialisation in Bogra

Farm mechanisation has progressed slowly but steadily in Bangladesh. It started with the adoption of modern irrigation technology in the late fifties that ushered in the Green Revolution. Low-lift power pumps, shallow tube wells and deep tube wells revolutionised irrigation, increasing the production of rice and wheat in winter season. On the heels of these equipment came thresher, power tiller and tractor. Almost all of these agricultural machineries and their parts came from abroad through import. The Bangladesh Agricultural Development Corporation (BADC) supplied these in collaboration with the private sector.
As long as the public sector was directly involved in the dissemination of farm mechanisation the equipment and spare parts were readily available at thana (now upazila) level. As privatisation of farm mechanisation was accelerated the supply of  equipment and spare parts through the BADC dwindled. The shortage was acute in respect of spare parts in particular as private suppliers often failed to match the requirements with timely import and supply. At this time, in the early seventies, local manufacturing of farm machineries and spares made its appearance. Bogra took the lead in this venture and emerged as the important centre for the production and distribution of agricultural machineries and spare parts. Cluster of farm machinery industries developed all over the district specialising in various products. The contribution of the district to the supply of spare parts of agricultural machineries has been almost on an industrial scale. The innovation of entrepreneurs in this field has never flagged since it started.
According to a survey conducted by the Rural Development Academy, Bogra in 2014, the market for agricultural machineries in Bangladesh was valued at Tk. 2.3 billion in 2006. During the last eight years the market has trebled rising to Tk. 7.96 billion. The machineries and equipment are still imported from abroad. But the spare parts of these are being made in Bangladesh almost hundred per cent. The quality of these spare parts is at par or even better than the imported ones. This has attracted the attention of foreign suppliers who are eager to tie up with local workshops. According to the survey, the major item of agricultural machineries in Bangladesh is engine. In 2014, engines worth Tk. 2.1 billion were sold. Besides, power tillers worth Tk. 4030 million and power pumps worth Tk. 1230 million were sold during the year. During the same year spares made in Bangladesh for these machineries and equipment were valued at Tk. 2.1 billion. As a result, the import of spare parts has declined. In 2011, spare parts worth Tk. 6000 million were imported. In 2014, it came down to Tk 5000 million. It is estimated that the size of the market for repair and maintenance is valued at Tk. 1.52 billion at present. In 2011, the corresponding figure was Tk. 7111 million. The survey report contains a comprehensive analysis of the quality and price of agricultural machineries and equipment and their spare parts. It has been found that out of 65 types of spares, 46 of very good quality are being made in and supplied by Bogra. Some are also being made in the adjacent district of Jessore. The prices of these are lower than those of imported ones.
According to the Bangladesh Small and Cottage Industries Corporation (BSCIC), there are 978 workshops for manufacturing of spare parts in Bogra. Besides, there are 45 foundries in the district. In addition, there are 600-700 units of workshops of various sizes specialising in the making of spares and for repair and maintenance. About 1000 shops are engaged in the distribution of their products. Hundreds of agents buy these from the workshops and shops in Bogra for distribution and marketing throughout the country. Thousands of workers are engaged at the factories and workshops earning their livelihood. The workers have mostly learnt their skill working on the job. The owners of the workshops are in most cases former workers. There is a resemblance between these workshops and the light engineering units at Dolaikhal in Dhaka where parts are being made mostly for automobiles, buses and trucks with equal ease and efficiency. As in Dolaikhal, the workshops in Bogra also make lathe machines, parts for jute mills' machineries, rice and oil mills. It seems using a prototype they can turn out any type and number of machinery parts. The workers are real technical wizards. Given a bit of training their efficiency level could be enhanced manifold raising productivity. But there is no opportunity for them for such skill acquisition and they fall back on their hands on experience.  
Besides absence of skill labour, the workshops in Bogra making agricultural machinery spare parts lack other facilities. They have inadequate access to institutional credit. The high rates of Vat and tax squeeze their profit margin almost to the point of disincentive. Raw materials supply for most of the workshops is uncertain and inadequate. The supply of gas and electricity is unsatisfactory.
In view of the important contribution they are making, the engineering workshops in Bogra (also in Dolaikhal) deserve necessary support and services from the government. Special credit line should be available to them with simplified procedures. Arrangements should be made for upgrading the skill of their workers. Vat and tax regime should be conducive to their growth. The BSCIC should open an advisory service centre for them. Arrangements should be made to establish linkages between these workshops and industrial units to broaden demand and expand marketing. Potential for exports should be explored. If the workshops in Bogra could come this far on their own, with some support from the government they can achieve much more. It is time to pay some attention to these minnows in our industrial landscape.        
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