Dynamics of Rural Growth in Bangladesh: Sustaining Poverty Reduction by Madhur Gautam; Rashid Faruqee

Author:Madhur Gautam; Rashid Faruqee
Language: eng
Format: epub
Publisher: The World Bank

Mechanization

With limited scope for land expansion and labor increasingly seeking nonfarm work, intensive farming through more mechanized farm operations becomes imperative. Mechanization has indeed expanded rapidly since 1989, when the removal of restrictions on machinery imports and the standardization of agricultural machinery spurred a rapid increase in machinery imports and marketing by the private sector (Mandal 2014). Evidence from the MH panel surveys shows that since 2000 a vast majority of households are using some form of mechanization. Rapid farm mechanization has had a strong, positive impact on labor and land productivity in Bangladeshi agriculture (table 3.14). Farmers have readily adopted small machinery (such as power tillers and small tractors), which has allowed them to release labor for other (mostly nonfarm) activities and diversify their incomes, while becoming more productive, efficient, and achieving higher gross margins on the farm.

Table 3.14 Farm Mechanization and Farm Performance Indicators, 2000–08

values in 2008 prices

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