Nearly one-third of combine harvesters (CHs) distributed under high government subsidy could not be located, highlighting irregularities in the distribution of the farm machinery, according to a study by the International Food Policy Research Institute (IFPRI).
The study assessed the third phase of the government's Agricultural Mechanisation Support Programme, which began in 2020 with a Tk 1,595 crore budget and aimed to distribute subsidised agricultural machinery — particularly combine harvesters — to tackle labour shortages and boost crop yields.
Over 35,000 machines, including nearly 9,000 CHs, were distributed based on subsidies of up to 70 percent for certain lagging-behind regions under the scheme.
A total of 552 CHs were recorded as distributed by the Department of Agricultural Extension (DAE). Of these, 28 percent could not be found, according to the paper presented at a policy dialogue on agricultural mechanisation, jointly organised by IFPRI and Centro International de Mejoramiento de Maíz y Trigo (CIMMYT), with support from CGIAR and the Gates Foundation, at the Bangladesh Agricultural Research Council (BARC) in Dhaka today.
In many cases, recipients failed to produce proof of ownership, the study said, citing field verification. More than a quarter of the machines were registered under names that did not match the actual users, suggesting manipulation.
IFPRI researchers found 57 CHs in use that were not listed in the DAE's database at all, indicating untracked or informal distribution channels operating outside government oversight.
The report said 14 percent of surveyed applicants admitted to paying unofficial fees averaging Tk 59,000 to local DAE officers or intermediaries to expedite or secure approval.
"These informal payments reflect a deeper issue of discretionary power and lack of transparency in how subsidies are distributed," the report stated.
Such rent-seeking behaviour not only increases costs for legitimate applicants but also distorts the allocation process, favouring those with influence or resources.
The programme's stated goal was to support mechanisation in labour-scarce and climate-vulnerable areas. However, IFPRI's data-driven geospatial analysis found otherwise.
Using models that combined factors such as crop yield gaps, labour availability, and climate risk, the researchers identified high-priority districts — many in the northwest and central regions — that remain underserved. Conversely, areas with lower mechanisation demand often received more machines.
"This misallocation suggests a disconnect between central planning and local realities," the report concluded.
Although suppliers were expected to offer after-sales service, only 37 percent of CH owners received warranty documents, and just 21 percent received any training on how to operate their machines.
The report said 97 percent of operators reported machine downtime averaging 12 days annually — roughly 17 percent of their total service time. The leading cause: shortages of spare parts and trained mechanics.
"This directly impacts service quality and the financial sustainability of MSPs," said an industry analyst.