Bogura's agri tool export earnings likely to decline sharply in FY'25

Export earnings of Bogura's agricultural machinery sector are projected to decline sharply in the current fiscal year (FY) 2024-25 ending in June, as Chinese manufacturers increasingly offer similar equipment at significantly lower prices and global demand softens amid Russia-Ukraine war and Trump's proposed reciprocal tariffs.

Official data shows that Bogura-based manufacturers exported agricultural tools and equipment worth Tk3.325 billion (Tk332.52 crore) in the first 10 months of the FY 2024-25, well below Tk5.27 billion (Tk527.32 crore) recorded in the entire previous fiscal year (2023-24). (source Bogura Chamber of Commerce and Industry ).

Industry insiders now fear that the annual tally may fall short by around 25 per cent in this fiscal year.

Bogura, a district in the northwestern part of Bangladesh, accounts for nearly 80 per cent of the country's agricultural machinery production.

It has long been considered the heart of the local machinery manufacturing industry, producing everything from paddy threshers and potato grading machines to power tillers, irrigation pumps, seeders, and spare parts for diesel engines.

"The primary reason for the decline in exports of agricultural tools is aggressive pricing by Chinese manufacturers," said Md Masud Rana, secretary of the Bogra Chamber of Commerce and Industry (BCCI).

"We are selling a spade at Tk200, while China is offering similar products for Tk180. International buyers are going for the cheaper options," he added.

India, once a consistent importer of Bangladeshi agricultural tools, has also begun producing its own equipment, further cutting into Bogura's traditional export markets. Currently, India mainly sources agricultural machinery items from Bogura. In addition to India, countries like the United States, Sri Lanka, Germany, Australia, the United Kingdom, and several Middle Eastern nations had previously sourced farming equipment from Bogura.

Md. Sairul Islam, acting president of the BCCI, pointed out that the global economic downturn, exacerbated by the Russia-Ukraine war and the persistent dollar shortage, has also weakened demand.

"There's a noticeable slump in the global agricultural machinery market. Export orders are falling," he added.

They also produce non-agricultural machineries including cement mixer machines and pharmaceutical equipment. There are currently around 1,200 factories in operations in Bogura.

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