Agricultural lubricant market of Bangladesh is expected to grow at a significant annual growth rate at 12-15% between the periods of 2018 to 2023.
The provision of subsidy for agricultural machinery, the increased mechanization in the agriculture, and the increased use of the quality lubricants are the key drivers of this prospective market.
In 2017, the government had raised the subsidy to cultivators for purchasing farm pieces of machinery from 30% to 50%, with a view to expanding mechanized seeding, transplanting and harvesting such that farmers can produce more food cost-effectively.
Today, up to 95% of the land is tilled by power tillers and tractors now.
A study published in October 2016 titled, ‘Scaling up of Agricultural Machinery in Bangladesh’ found a bit of hint for agricultural lubricants that can facilitate scaling up of the machinery services.
Bangladesh has a significant labour shortage during the agricultural peak planting and harvesting times. So, the improved machinery to replace this service will increase in near future.
We have a large installed base of power tillers and local service providers. Farmers are already oriented with the mechanization and buying machinery services, and new agricultural innovations can build on the existing services.
With a fairly extensive distribution system, the private agricultural machinery sector is growing.
However, the key restraints of these machinery lubricants are the availability of the recycled lubricants and the lack of knowledge among small-scale farmers.
Recycled lubricants can be harmful in the harsh environmental and operating conditions – such as cold, heat, dirt and water – that can be detrimental to a lubricant’s performance in the machinery equipment.
Farmers and other agricultural customers with automatic lubrication systems to ensure that their equipment is lubricated with the right lubricants, in the right amount, at the right intervals.