IFPRI workshop presents policy research on agricultural mechanisation in Bangladesh

The International Food Policy Research Institute (IFPRI), with support from the Bill and Melinda Gates Foundation, convened a knowledge-sharing workshop on "Agricultural Mechanization in Bangladesh" at the Hotel Bengal Blueberry in Dhaka, Bangladesh.

The workshop presented IFPRI's preliminary research findings and fostered dialogue among policymakers, researchers, practitioners, bankers, and industry experts to enhance agricultural mechanisation. Key objectives include evaluating the targeting efficiency and effectiveness of current mechanisation efforts, addressing market and governance challenges, and emphasising evidence-based geographical targeting to refine subsidy policies for sustainable mechanisation.

The workshop opened with remarks and presentations from IFPRI representatives, followed by discussions from distinguished experts in the field.

Dr Akhter Ahmed, Country Representative of IFPRI-Bangladesh, emphasised the critical need for targeted and sustainable agricultural mechanisation in his remarks at the workshop. "Rising rural wages and evolving labour dynamics in Bangladesh demand innovative mechanisation strategies that enhance productivity and support farmers' livelihoods," said Dr Ahmed. He highlighted IFPRI's role in generating evidence-based insights and fostering policy dialogue to address governance challenges and create an enabling environment for private sector engagement in mechanisation solutions.

The Chief Guest, Dr Md. Mahmudur Rahman, Additional Secretary (PPC Wing), Ministry of Agriculture, highlighted the critical importance of evidence-based research in shaping the future of agricultural mechanisation policies in Bangladesh. "The insights shared today come at a pivotal moment and will significantly influence the decisions regarding the continuation and refinement of mechanisation initiatives," said Dr Rahman. He acknowledged the governance challenges and inefficiencies in subsidy distribution and underscored the need for targeted interventions, equitable distribution, and fostering public-private partnerships. "Subsidies remain both a necessity and a dilemma; we must ensure they are impactful and sustainable, emphasising empowering local industries and reducing reliance on imports," he added. Dr Rahman commended IFPRI and its partners for enabling rich discussions and urged continued collaboration in advancing evidence-driven policies aligning with Bangladesh's agricultural priorities.

The workshop also featured research presentations on agricultural mechanisation.

IFPRI Research Fellow Dr Mehrab Bakhtiar and Associate Research Fellow Dr. Moogdho Mahzab presented IFPRI's ongoing policy research on farm mechanisation in Bangladesh. The presentation highlighted critical insights from IFPRI's research on agricultural mechanisation in Bangladesh, focusing on aligning machine allocation with regional agroecological needs, governance challenges, and market dynamics. Key findings highlighted regional disparities in machine distribution, with some high-production areas being overlooked in the distribution process. Additional issues included subsidy targeting inefficiencies and significant training and after-sales support gaps. It also emphasised the need for evidence-based allocation decisions, improved demand-supply coordination, and more substantial support for local industries to enhance sustainability. The discussion underscored the importance of addressing financing constraints, promoting equitable access, and ensuring quality standards to drive impactful mechanization policies.

Dr Ayub Hossain, former director of the Training and Communication Wing of the Bangladesh Agricultural Research Institute (BARI), stressed that agricultural mechanisation goes beyond distributing machines and must focus on effective utilisation and farmer training. He commended IFPRI's presentation for aligning with the national mechanisation policy and action plan, emphasising the importance of building farmers' capacity to ensure long-term success.

Dr Imanun Nabi, Assistant FAO Representative (Programme), Food and Agriculture Organisation (FAO) highlighted the need for nuanced policies to address challenges in mechanisation, particularly for smallholder farmers who cannot afford machinery independently. He linked the FAO's Missing Middle Initiative to the integration of mechanisation through farmer field schools, which enhances farmers' capacity and engagement in value chains. He also agreed with IFPRI's assessment of the challenges in cooperative-based farming and stressed the importance of equipping rural youth with better agricultural investment knowledge.

Dr. Ruhul Amin Talukder, Senior Policy Advisor at IFPRI and Former Additional Secretary at the Ministry of Agriculture, skilfully moderated the discussion, offering profound insights into Bangladesh's agricultural policies. Reflecting on the evolution of agrarian mechanisation, Dr Talukder emphasised the importance of understanding key factors such as tax regimes, financing mechanisms, private sector participation, and regulatory regimes. The discussion brought together policymakers, researchers, industry leaders, and financial institutions to address the challenges and opportunities in scaling sustainable mechanisation in Bangladesh. Dr. Monjurul Alam underscored the importance of incentivising local manufacturers, proposing a 4% credit incentive for local production and advocating for a significant allocation of agricultural credit—at least 20%—to mechanisation to ensure long-term agrarian development.

Dr AKM Abdullah Alamin emphasised the need for regionally tailored mechanization policies, highlighting that a one-size-fits-all approach does not suit Bangladesh's diverse agro-ecological contexts. He advocated for retrofitting existing technologies like power tillers rather than focusing solely on large machinery, citing technical, economic, and social considerations. Dr Sreejith Aravindakshan from CIMMYT added insights on monopolistic behaviours in the service economy and suggested exploring neighbourhood-based service models to improve accessibility and cost-effectiveness.

Several participants raised concerns about inefficiencies in the subsidy framework. Emphasising women-friendly mechanisation, Israt Jahan reflected on historical successes, such as adopting power tillers without subsidies. It urged policymakers to gradually phase out subsidies while enhancing farmers' access to finance. Dr Md. Tasfiq Hoque from Bangladesh Bank highlighted financial constraints, including high interest rates on agricultural loans and private banks' challenges in reaching smallholder farmers. He called for better coordination between financial institutions and government programs to ensure affordability and inclusiveness.

Dr Kazi Iqbal from BIDS stressed the need for a regulatory framework to address monopolistic market tendencies and ensure equitable service pricing. He also questioned the welfare gains from high subsidies, urging a deeper analysis of their impacts on productivity and cost-efficiency. Industry representatives, including METAL and Alim Industries, pointed to operational challenges, including instalment dues, overpricing, tender issues, and difficulty accessing spare parts due to high import duties.

The discussions concluded with a consensus on the need for evidence-based policies that prioritise regional demands, improve governance in subsidy distribution, and create a supportive environment for local industries. Participants emphasised that achieving sustainable mechanisation would require collaborative efforts, targeted financial interventions, and regulatory reforms to ensure equitable access and long-term viability.

Building on extensive expertise and collaborative discussions with key stakeholders, the workshop aimed to deliver actionable insights and policy recommendations to drive sustainable agricultural mechanisation in Bangladesh. This initiative is vital for addressing regional disparities, improving governance in subsidy allocation, and fostering innovation, ultimately strengthening the farm sector's resilience, and enhancing youth employment and farmers' livelihoods across the country. IFPRI's collaborative research with the Government of Bangladesh marks a pivotal step in advancing agricultural mechanisation, ensuring the effective use of government incentives and financial products to achieve long-term agrarian development goals.