Japanese agricultural machinery manufacturer Yanmar has expressed interest to set up a factory in Bangladesh to manufacture combine harvesters for reaping paddy.

Yanmar is willing to set up the plant in a joint venture with ACI Motors in Bangladesh.

A delegation led by Sogo Det, international business head of Yanmar, came up with the proposal in a tripartite meeting with a team from ACI Motors and Agriculture Minister Muhammad Abdur Razzaque at Bangladesh Secretariat yesterday.

Yanmar and ACI have decided to set up the plant as the combined harvesters of Yanmar have high demand in Bangladesh, the ministry said in a statement.

Sogo Det said they have an initial plan to go into production locally from early 2024.

In the meeting, Razzaque said the shortage of agricultural workers was intensifying day by day in the country.

"Labourers are not available during the harvesting period. Besides, the production cost in traditional methods is much higher and time consuming too," he said.

Therefore, the government is working on mechanisation of agriculture on a priority basis and machinery is being supplied to farmers at 50 per cent subsidy across the country and 70 per cent subsidy in haor and coastal areas, said the minister.

Welcoming the initiative of Yanmar, Razzaque said, "We are emphasising manufacturing and assembling agriculture machinery locally. So, we will give all-out support to Yanmar in setting up a factory in Bangladesh."