Sunday, February 23, 2025

Debt and Defective Harvesters Spark Farmers’ Protest in Rangpur

Farmers Demand Compensation and Loan Relief as Subsidy Program Suspended

On Tuesday, February 11, distressed farmers gathered for a human chain in front of the press club in Rangpur city, protesting the financial burden imposed on them by faulty combined harvester machines and mounting loans. The farmers, who had purchased these machines under a government subsidy scheme, are now calling for compensation and the cancellation of lawsuits filed by the companies involved.

Background of the Protest

Under the Farm Mechanization Project, the government provided subsidies to farmers for purchasing combined harvester machines, aiming to address labor shortages and improve efficiency in rice harvesting. However, many farmers are now facing significant financial difficulties, claiming that the machines they purchased soon broke down, leaving them in debt. These loans, provided by the companies that sold the machines, have led to multiple lawsuits against the farmers.

Hundreds of farmers from various districts of Rangpur participated in the protest. They expressed frustration, stating that the harvesters, which were meant to ease their agricultural work, have instead become a financial burden. Many reported that their machines malfunctioned shortly after purchase, trapping them in a cycle of debt and legal action.

Farmers’ Accounts

Farmers like Mohammad Nur Alam from Uttam Hajirhat in Rangpur shared their struggles. He explained that he had bought two harvesters, hoping to improve his financial situation. However, after selling land to pay for one machine, he still owed money for the other, and now faces lawsuits for the unpaid amount.

Kamruzzaman, another farmer, recounted how he invested a total of 51.5 lakh taka (approximately 42,131 USD) in two harvesters, including a 50% subsidy. But the machines malfunctioned shortly after purchase, causing significant financial hardship. His family is now trapped in debt, with three lawsuits filed against them by the supplier.

Similarly, Ekramul Haque expressed frustration over the failure of his machines, which he had purchased at a considerable cost. After paying off one harvester, the second one broke down, and the company sold it to another buyer. As a result, Haque now faces deep debt, compounded by a lawsuit from the company.

Demands of the Farmers

The protesting farmers are demanding the immediate withdrawal of all lawsuits and cancellation of the loans for faulty harvesters. They are also urging the government to provide compensation, as many have lost their land and livelihoods due to the financial strain.

A combine harvester used for reaping paddy. The Bangladesh government previously offered a 50% subsidy to farmers to promote its use.

Government’s Decision to Halt the Subsidy Program

The situation worsened when the government unexpectedly suspended the subsidy program for combined harvesters on January 30, 2025. The suspension, which was implemented without prior notice, has left both farmers and suppliers in uncertainty. This decision has raised concerns, particularly in areas heavily dependent on harvesters to address labor shortages and mitigate the impact of unpredictable weather patterns.

Farmers, who had relied on subsidized harvesters to cope with rising labor costs and other challenges, are now unable to afford the machines. There are growing fears that this could lead to higher rice prices, as manual harvesting becomes more common, further increasing costs for both farmers and consumers.

The Impact on Rice Production and Costs

The combined harvester machines significantly reduce both the cost and time involved in harvesting rice. A typical combined harvester can process one acre of land in about one hour at a cost of 6,000 to 8,000 taka (approximately 49 to 66 USD). In contrast, manual labor requires 12 to 15 workers, resulting in a higher cost of 12,000 to 15,000 taka (approximately 98 to 123 USD) per acre.

Additionally, the machines minimize crop loss during harvesting, with a maximum loss of about 3%, compared to 12-15% loss when harvesting manually. As the suspension of the subsidy forces farmers to revert to manual labor, the increased costs will likely contribute to rising rice prices, which will also affect consumers.

Challenges for Suppliers and Dealers

With the suspension of the subsidy program, suppliers and dealers of combined harvesters are facing a sharp decline in sales. Amir Hossain, CEO of Abedin Equipment Limited, expressed concerns over the lack of information about whether the government will resume the subsidy program this year, leaving both farmers and suppliers in a state of uncertainty.

Saddid Jamil, Managing Director of Metal Group, noted that the absence of subsidies has led to decreased interest in purchasing harvesters, resulting in significantly reduced sales. The suspension is expected to further drive up rice production costs, potentially leading to an increase in rice prices on the market.

A Glimpse of the Benefits from the Project

Despite the challenges posed by faulty machines and the suspension of subsidies, the Farm Mechanization Project initially brought significant benefits to agriculture. In areas like Tangail, farmers reported that the use of combined harvesters helped reduce labor costs, save time, and improve efficiency. The machines have become particularly valuable in  the haor region in the north eastern part of Bangladesh including Sunamganj, Habiganj, Moulvibazar, Sylhet, Kishoreganj, Netrokona and Brahmanbaria where labor shortages during peak harvesting seasons are common.

The machine has become popular in the southern coastal districts like Bhola, Potuakhali and many other parts of the county as well. Farmers in Tangail, for instance, reported that the cost of harvesting one bigha (approximately 1/3 acre) of rice decreased from 8,000 to 10,000 taka (approximately 66 to 82 USD) with manual labor to just 5,000 to 5,500 taka (approximately 41 to 45 USD) with the machine.

The Path Forward

As the Farm Mechanization Project nears its end in June 2025, farmers, suppliers, and policymakers must collaborate to address the challenges of faulty machines and the suspension of the subsidy program. There is a pressing need for transparency, accountability, and a sustainable solution to support farmers, especially those already financially affected.

The continuation or reintroduction of the subsidy program, alongside a compensation package for affected farmers, could help mitigate the current crisis. Additionally, ensuring the proper maintenance and repair of harvester machines, as well as revisiting loan conditions, will be essential in restoring trust in the program and preventing further financial ruin.

Prioritize Farmers’ Needs

The protest in Rangpur highlights the ongoing challenges faced by farmers in Bangladesh, particularly regarding agricultural mechanization and government-backed subsidy schemes. While mechanization has proven beneficial in improving productivity and reducing labor costs, the issues of faulty machinery and the abrupt suspension of the subsidy program have left many farmers in financial distress. As the government revisits its policies, it is crucial to prioritize the needs of farmers to ensure that they can continue contributing to the country’s agricultural sector without undue hardship.

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