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Impact of Farm Mechanization on Developing Small-scale Industries and Improving Livelihoods of Rural Labourers in Bangladesh: a Case Study in Gazipur Area

M. A. Monayem Miah
Scientific Officer
Agricultural Economics Division, BARI, Gazipur

M. Serajul Islam
Professor
Department of Agricultural Economics

Abstract/ Executive Summary:

The study was undertaken in Sreepur area of Gazipur district during August 2001 to March 2002 to assess the socio-economic impacts of farm mechanization on development small-scale industries, creating employment opportunities, and changing the livelihoods of rural labourers. A total of 130 labourer households of which 40 samples of each from farms labourer and non-farm labourer, and 25 of each from woman labourer and household women labourers’ group were randomly selected for the study. Farm mechanizaton had both direct and indirect effects on creating employment opportunities and better income industries in the study areas. It also made remarkable impacts on the improvement of their industries in the study areas. It also made remarkable impacts on the improvement of their standard of living to some extent. The rural labourers experienced a considerable increase in their annual income (75 to 113%), household expenditure (27 to 141%), annual savings (100-328%) and their household asset position. The study emphasized the distribution of farm machinery to labourers’ group after providing skill training for wider adoption of mechanised cultivation in the country.

Keywords: Impact, Farm mechanization,Small scale industries, Livelihoods

Location: Gazipur district

Start Date: 00-08-2001

End Date: 00-03-2002

Program Area: Socio-economic and Policy

Non-commodity: Social status, Employement

Objectives:

i. To explore the type of industries developed due to mechanization

ii. To determine the type of job opportunities created for rural labourers

iii. To assess overall socio-economic impacts of mechanized cultivation on the livelihoods of rural labourers.

Methodology:

The present study was conducted at Bromi and its surrounding areas of Sreepur thana under Gazipur district. Before conducting detail and in-depth survey, PRA was undertaken to find out trends over last years labour employment, level of household income, period of adopting farm mechanization and its socio-economic impacts on employment and labourer livelihoods. It was appeared from PRA study that farm mechanization has been started to some extent from 1985 and had both direct and indirect impact on rural male and female labourers. Based on these information, rural labourers were classified into four groups- farm labourer, non-farm labourer, distressed women labourer and household woman laborers. They were mainly wage and self-employed labourers and earned more than 50% of their household income from labour selling. For selecting targeted labourers households, purposive random sampling was followed. A total of 130 labourer households of which 40 samples of each from farm labourer and non-farm labourer, and 25 of each from women labourer and household women labourer. Data were collected both in peak and slack periods of Boro and Amon season during August 2001 to March 2002. Both qualitative and quantitative data were analysed and presented by using tables, figures and diagrams.

Source of Information: Annual Research Report 2002, Agricultural Economics Division, BARI, Gazipur

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Farm mechanization has a significant impact in increasing the social assets of rural labourers. Farm mechanization had both direct and indirect effects on developing agro-based and other allied industries (both backward and forward), where both male and female rural labourers were employed and earned higher income than before. Farm mechanization made a positive and remarkable impact on the livelihoods of rural labourers in the study areas. Farm mechanization has increased the demand for hired labour for farm activities and reduced the use of family labour.

Knowledge Management: Report/Proceedings