Subsector Market Assessment-Agro Tools, Bangladesh, IDE & KATALYST 2003

Description
The agricultural machinery subsector contributes directly to poverty alleviation and food security in Bangladesh. IDE conducted a subsector market assessment to investigate the market for business services in the on-farm agricultural machinery subsector. Focused on three agro-machinery production areas of the country, the study included surveys of value chain members and interviews with key representatives of government, NGOs, research institutes and the private sector.

The report identifies the constraints faced by the subsector, the forces driving changes in it, the demand for business services, and the interventions that could play a critical role in addressing the constraints. In addition, the report recommends activities that could improve the subsector's ability to facilitate pro-poor growth, which would positively impact actors in the chain as well as resource-poor farmers.


Methods for info gathering
Provider surveys, SE surveys, in-depth interviews, key informant interviews, secondary source research

Summary of results
Constraints facing the subsector - market access, input supply, technology/ product development, management and organization, policy, finance, and infrastructure - contribute to market stagnation, slow growth, poor product quality, low productivity, and financial loss. IDE determined that legal agreements protecting small producers; training and incentive programs to retain staff; advocacy; trade fairs, information on new technologies, and links with agro R&D firms and foreign manufacturers would help address the constraints.

Linking farmers to credit and providing them with illustrated instruction manuals in simply written Bangla is critical as are changes in the design of appropriate technologies catering to the needs of women. An appropriate gender approach should focus on product innovation and new technology development and their application at the farm and family level.

Overall, the subsector has remarkable potential for significant growth. The major challenge is to develop its capacity and ability to produce quality products that can compete with foreign spares and tools, particularly those imported from China.





Associated Activities and Documents
Market Assessment
»	Subsector Market Assessment of the Aromatic Rice Subsector, DFID & IDE Bangladesh, 2002
»	Pond Fishery Subsector Service Market Assessments, Bangladesh, IDE & KATALYST 2003
»	Vegetable Subsector Service Market Assessments, Bangladesh, IDE & KATALYST 2003
Programme Design
»	Design of the Katalyst project, Bangladesh, June 2004
Implementation
»	KATALYST - Implementation, Bangladesh 2002-2007