Syeda Sabrina Sarwar ID-112113069 International Business

Import of Tractor into Bangladesh

Bangladesh Agriculture Industry: Bangladesh is primarily an agrarian economy. Agriculture is the single largest producing sector of economy since it comprises about 30% of the country's GDP and employing around 60% of the total labor force. The performance of this sector has an overwhelming impact on major macroeconomic objectives like employment generation, poverty alleviation, human resources development and food security. Agricultural holdings in Bangladesh are generally small. Through Cooperatives the use of modern machinery is gradually gaining popularity. Rice, Jute, Sugarcane, Potato, Pulses, Wheat, Tea and Tobacco are the principal crops. The crop sub-sector dominates the agriculture sector contributing about 72% of total production. Meeting the nation's food requirements remains the key-objective of the government and in recent years there has been substantial increase in grain production. However, due to calamities like flood, loss of food and cash crops is a recurring phenomenon which disrupts the continuing progress of the entire economy. Agriculture Machineries in Bangladesh: The growing interest of farmers in mechanized cultivation has opened a window of opportunity for imports and locally-made machinery and spare parts. Agricultural machinery use in Bangladesh are Tractor, Power Tiller, Reaper, Harvester, Combine Harvester, Rice Cutter, Grain Dryer, Diseal Engine, pump, Thresher, Rice Transplanter, Sprayers etc. Virtually, mechanization in Bangladesh agriculture started in 1960s with the introduction of tractor, power tiller, deep tube well, shallow tube well and low lift pumps on very limited quantities. After independence in 1971, it gained pace, especially, in irrigation development. Though, tractors, power tillers, and other farm machinery like threshers and weeders increased with time, irrigation equipment increased much faster rates About 250 power tiller operated seeders are in use. Both power tiller operated seeder for dry land crops and manually operated plastic drum seeders for rice are expected to expand soon. Besides, manually operated sprayers are being used for a long time. Farm machinery, such as, weeders, threshers, winnowers, centrifugal pumps etc. are developed and manufactured locally with locally available materials. Manually operated weeders and sprayers are used widely and amounts to about 200,000 and 1,000,000, respectively. Labor
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Syeda Sabrina Sarwar ID-112113069 International Business

shortage occurs during this period, resulting in substantial loss during harvesting and transportation. It is estimated that for paddy 2.2 per cent and 0.5 percent are lost during harvesting and transportation, respectively. For wheat, harvesting and transportation losses are 0.8 and 0.38 percent, respectively. Research and development works on both PT-operated and self-propelled reaper are going on. At present five manufacturers are fabricating and testing reapers and they are able to commercialize their production. BARI developed a potato digger a self-propelled reaper for paddy and wheat that needs extensive field trials and demonstration. HS Code of Some Agriculture Machineries:
Item HS+ Code 8435-8436 Item Name Agricultural (trade) 8701.30,90 Agricultural tractors machinery nes Definition Agricultural machinery not else specified (n.e.s.) refer to total Agricultural machines as described by the Harmonised Coding System (HS) codes 8435-8436. Data refer to the value of the trade expressed in 1000 USD Agricultural tractors generally refer to wheel and crawler or track-laying type tractors (excluding garden tractors) used in agriculture. Data are expressed in numbers in use in the agricultural sector. 8701.10,30,90 Agricultural tractors, total Agricultural tractors, total generally refer to total wheel, crawler or track-laying type tractors and pedestrian tractors used in agriculture. Data are available for numbers in use in the agricultural sector as of 2000. Data on import and export in value and number are also available as of 1961. 8433.51 Combine harvesters - threshers Combine harvesters - threshers are self-propelled machines that collect and thresh in one operation. Data are expressed in numbers in use in the agricultural sector. 8433-8437.10 Harvester and threshers (trade) Harvester and threshers refer to total harvesting and threshing machines as described by the Harmonised Coding System (HS) codes 8433 and 8437.10. Data refer to the value of the trade 8701.9 Other Agricultural tractors expressed in 1000 USD Other agricultural tractors include all other agricultural tractors that are not pedestrian controlled or track-lying, e.g. 4-wheel, 6-wheel, etc. Data are expressed in numbers in use in the agricultural sector. 8432.1 Ploughs Ploughs are implements designed to lift and turn soil. Data are expressed in numbers in use in the agricultural sector. 84.32.80.09 8408.90.10 8433.52 Power Tiller Diesel engine Threshing machines(staking,forage harv.) Threshing machines (staking, forage harvesting) are machines that separate grain from straw. Data are expressed in numbers in use in the agricultural sector.

Use of Tractor in Bangladesh:

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Syeda Sabrina Sarwar ID-112113069 International Business

In Farm Mechanization there are two major contribution one higher productivity and greater output. Tractors form an integral part of the farm mechanization and have a crucial role to play in increasing agricultural productivity. Tractor is a highly versatile piece of machinery having a multitude of uses, used in agriculture both for land reclamation and for carrying out various crop cultivation and also employed for carrying out various operations connected with raising the crops by attaching suitable implements and to provide the necessary energy for performing various crop production operations involved in the production of agricultural crops specially in Bangladesh where the major occupation is Agriculture. 60% of total tractors are used for transportation and haulage and rest 40% are used for agriculture purpose. Tractors are capital intensive, labor displaying used as a mode of transport, in electricity generation, in construction industry and for haulage operation. It has now become an integral part of farm structure .The problems of farmers has been erased by the application of tractor for agricultural activities which swept Bangladesh during the last twenty years . Import of Tractor in Bangladesh: We import 98% of total import of tractors from India and rest from Russia. Nearly 5000to 5500 tractors are importing yearly into Bangladesh. From which around 3500 unit are enter through Benapole order and rest through ship. Bangladesh economy is primarily dependent on agriculture. Agriculture comprises 18.6% of GDP .Value added from agriculture in GNP is BDT 886,015 million .Total value of the tractor market is US$ 45 billion .Agriculture is a prime economic sector as remittance and garments has overseas dependency .Customer awareness has improved significantly.85% farmers are aware about the benefits of mechanization. Farmers are into agriculture by generations .About 84% of the total population are directly or indirectly engaged in agricultural activities .About 43.6% of the labor force is employed in agriculture. Wide scope to replace traditional farming .Cost benefit of 77% against traditional cultivation model. Widespread use of tractor including carrying, pulling etc. The government encourages development of the agricultural sector through measures to increase crop sector productivity and production of non-crop agriculture

Syeda Sabrina Sarwar ID-112113069 International Business

Company export tractor to Bangladesh are: MANUFACTURER COLLABORATOR YEAR Eicher Tractors Ltd Gebr, Eicher Tractor. West Germany 1961 TAFE Messey Ferguson. UK 1961 Moloimport Arazawa Zaklady Mechaniczne .Ursus Escorts Ltd 1964 Poland Mahindra And International Harvestor. UK 1965 Mahindra Bajaj Tempo Ltd Own know how 1987 International Tractors Own know how 1998 Larsen And Tourbo John Deere. USA 1999 Ltd New Holland Tractor New Holland Tractors .Italy 1999 Greaves Ltd Same Deutz Fahr. Italy 1999 Belarus(Russia) Own know how