The agricultural machinery and spare parts segment of light engineering sector has experienced a 40% decrease in sales due to the economic impact of Covid-19 and the Russia-Ukraine war. The US dollar shortage in the country has led to higher import costs for necessary components, resulting in a 35-40% decline in sales. The light engineering sector, which produces a diverse range of items, including agricultural machinery and spare parts, has seen its production costs increase by around 35% due to doubled or tripled input prices. The sector’s yearly turnover has decreased from Tk 26,000 crore in 2019 to about Tk 16,000 crore over the past one-and-a-half years. Workshop owners are struggling to recover operational costs and pay worker salaries, with some facing the possibility of shutting down due to insufficient capital. The situation is not expected to improve in the next six months, as the sector continues to grapple with economic challenges.
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