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Accelerating Agricultural Growth: 9 International Corporations Set to Invest Tk 6,250 Crore in Farm Mechanization
- By Efazul Karim -- 6 minutes read --
- Jun 12, 23
" Revitalizing Agriculture: Foreign Investments Set to Transform Bangladesh's Farming Landscape "
Foreign Investment in Bangladesh's Agriculture: A Path to Modernization and Economic Growth
Bangladesh's agricultural sector is on the brink of a major transformation, thanks to the interest shown by nine foreign companies in investing a whopping Tk 6,250 crore to modernize agriculture and fuel economic growth. These companies, hailing from China, Japan, Korea, and Taiwan, have taken significant steps by submitting their investment proposals to the Bangladesh Investment Development Authority (BIDA) and applying for operational permissions from the Office of the Registrar of Joint Stock Companies and Firms (RJSC), marking a potential turning point in Bangladesh's agricultural development.
The Registrar of the RJSC, Sheikh Shoebul Alam, confirmed the submission of applications earlier this year, indicating that the proposals are under thorough review. This move signifies a growing confidence among international investors in the Bangladeshi agricultural economy, particularly in manufacturing farm machinery and equipment. Among the notable investors, four Chinese firms plan to invest amounts ranging from Tk 600 crore to Tk 1,200 crore, while two Japanese companies aim for Tk 800 crore and Tk 350 crore, respectively. Additionally, two Korean and one Taiwanese company are exploring investments totaling Tk 1,200 crore.
One standout investor, Juhachun Ltd. from China, intends to pour in around Tk 1,200 crore for manufacturing various agricultural machinery and parts, targeting a site within an economic zone near Dhaka. This initiative, expected to kick off construction in early 2024, promises to create jobs for around 500 individuals and aims to serve markets beyond Bangladesh, including India, Pakistan, Vietnam, Nepal, and Sri Lanka.
This influx of foreign investment is poised to reshape the Tk 11,000 crore annual market for agricultural machinery and parts in Bangladesh, which is currently dominated by foreign companies. The move could alleviate some pressure on the country's foreign currency reserves and encourage local manufacturing. Khandoker Moynur Rahman, the president of the Bangladesh Agricultural Machinery Merchants Association, views these investments as a boon for creating job opportunities and enhancing the quality of local products, though he underscores the need for government support and incentives to encourage more local participation.
The commitment of these nine foreign entities to supply machinery and components both locally and internationally, with five already seeking space in economic zones, heralds a new era for Bangladesh's agricultural sector. This strategic investment not only aims to modernize farming practices but also positions Bangladesh as a significant player in the global agricultural machinery market.
As Bangladesh welcomes these foreign investments, the focus on agricultural modernization and economic growth through enhanced farm machinery production underscores the country's evolving narrative — from traditional agriculture to a technologically advanced farming future. This transition, fueled by international collaborations, promises not only to secure Bangladesh's food supply but also to establish it as a key exporter of agricultural machinery and technology, fostering a sustainable and prosperous economic landscape.
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