Economic Reporter :
If rice and wheat fields are ploughed by tractors, the cost will be 69-84 percent less than the existing expenditure.
The tractor market expanded about 40 percent in last few years with the support of the government giving subsidy in blooming technology for agriculture.
The farmers prefer diversification in cultivation and harvesting their crops due to labour crisis and higher wages.
But the expansion of the use of tractors is curbed with the Finance Minister’s proposal for 24 percent VAT and duty on the popular agricultural machinery. It is 19 percent more than the previous year.
In the year 2016-17, one percent of custom duty only and four percent Advance Trade VAT were imposed. But a change has been proposed in the budget for the coming financial year of 2017-18.
Moreover, farmers will lose interest in buying tractors due to excessive cost of Tk two lakh each.
The Chief General Manager of The Metal Private Limited, Mizanur Rahman, a leading tractor importer and marketing company said, “There is no alternative to mechanization to increase labour crisis and production in agriculture.
In order to purchase agricultural machinery, the government has taken various initiatives, including cash pricing and to reduce the prices. Now the tractor is very popular for the farmers to save labour and time, he said.
But for 24 percent VAT, prices will increase beyond their capacity. Therefore, it is recommended for withdrawal with due consideration of farmers’ interest and grain production, he said.
It is learnt that the use of advanced technology in cultivation has been instrumental in reducing the cost of production and increasing productivity. Tractor is more effective than Power teller. Operating a power teller is costlier than a tractor.
According to a joint survey of the Farm Power and Machinery Department of Bogra Poly Unnayan Academy and Bangladesh Agriculture University, more than 35,000 tractors are used in the country.
Due to cash pricing and policy support from the government on different occasions, tractor market has expanded by 35-40 percent between 2002 and 2016. In 2012, 4600 tractors were imported, and the market value was about Tk 414 crore. And about 6,500 trucks were imported in 2016.
Chairman of Parliamentary Standing Committee on Agriculture Ministry Md. Mokbul Hossain said that for the last several years, the workers have been encouraging farmers to go for mechanization of agriculture to overcome crisis.
If rice and wheat fields are ploughed by tractors, the cost will be 69-84 percent less than the existing expenditure.
The tractor market expanded about 40 percent in last few years with the support of the government giving subsidy in blooming technology for agriculture.
The farmers prefer diversification in cultivation and harvesting their crops due to labour crisis and higher wages.
But the expansion of the use of tractors is curbed with the Finance Minister’s proposal for 24 percent VAT and duty on the popular agricultural machinery. It is 19 percent more than the previous year.
In the year 2016-17, one percent of custom duty only and four percent Advance Trade VAT were imposed. But a change has been proposed in the budget for the coming financial year of 2017-18.
Moreover, farmers will lose interest in buying tractors due to excessive cost of Tk two lakh each.
The Chief General Manager of The Metal Private Limited, Mizanur Rahman, a leading tractor importer and marketing company said, “There is no alternative to mechanization to increase labour crisis and production in agriculture.
In order to purchase agricultural machinery, the government has taken various initiatives, including cash pricing and to reduce the prices. Now the tractor is very popular for the farmers to save labour and time, he said.
But for 24 percent VAT, prices will increase beyond their capacity. Therefore, it is recommended for withdrawal with due consideration of farmers’ interest and grain production, he said.
It is learnt that the use of advanced technology in cultivation has been instrumental in reducing the cost of production and increasing productivity. Tractor is more effective than Power teller. Operating a power teller is costlier than a tractor.
According to a joint survey of the Farm Power and Machinery Department of Bogra Poly Unnayan Academy and Bangladesh Agriculture University, more than 35,000 tractors are used in the country.
Due to cash pricing and policy support from the government on different occasions, tractor market has expanded by 35-40 percent between 2002 and 2016. In 2012, 4600 tractors were imported, and the market value was about Tk 414 crore. And about 6,500 trucks were imported in 2016.
Chairman of Parliamentary Standing Committee on Agriculture Ministry Md. Mokbul Hossain said that for the last several years, the workers have been encouraging farmers to go for mechanization of agriculture to overcome crisis.
