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 and the increased mechanization in the agricultural industry are the key drivers of this prospective market.
In 2009, the government took up a Tk 150 crore scheme to speed up farm mechanization by offering 25% subsidy for agricultural types of machinery such as power tillers, tractors, power threshers and combine harvesters.
Later, the project was extended till June 2019 and the government raised the subsidy to farmers for purchase of agriculture machinery to 50% in two phases.
Today, up to 95% of the land is tilled by power tillers and tractors.
However, the key restraints of the oils for these types of machinery are the availability of the recycled lubricants in the. And the lack of knowledge among small-scale farmers is also a concern.
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 your 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.
In Bangladesh, HD 40 and HD 50 are the popular agricultural lubricants in rural areas.
To meet the demand of the automotive and industrial sector, multi-grade oil has already received a business era. However, the monograde oil, especially for the agricultural multi-purpose use, has made this market a significant for now and future.