Access to finance in Bangladesh’s agricultural mechanization sector is shaped by stakeholders’ preferences for alternative financial instruments. Local producers face the greatest financial constraints, primarily due to double taxation on raw materials and product sales. Survey results from 196 respondents show strong preference for asset-based finance and machine leasing, while other instruments remain largely underutilized. Econometric analysis reveals that education, financial literacy, government support, and firm characteristics significantly influence adoption.
Recommendations include promoting familiar instruments, gradually introducing alternatives, strengthening policy support, building capacity, and digitalizing the supply chain to enhance financial inclusion, operational efficiency, and mechanization uptake.
Publication Period: October 2025
Authors: Khondaker Golam Moazzem, Faisal Quaiyyum, Abrar Ahammed Bhuiyan, Rassiq Aziz Kabir
