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An Analysis of Maize Marketing System in Selected Areas of Bangladesh

M.A. Matin
Senior Scientific Officer
Agricultural Economics Division, BARI Joydebpur, Gazipur-1701

M.S. Rahman
Scientific Officer
Agricultural Economics Division, BARI Joydebpur, Gazipur-1701

A.K.M. Habibul Haque
Chief Scientific Officer
Agricultural Economics Division, BARI Joydebpur, Gazipur-1701

Abstract/ Executive Summary:

From this study, five major channels were identified of which channel-I, Farmer – Faria-Bepari ( Chantal)-Aratdar-Cum –Wholesaler- Feed Millers-Poultry Farm ranked first. Price spreads and producer share of consumers price in case of two marketing channels were identified. In channel-I, producers' gross share was 77 per cent and net share was 75 per cent per quintal of maize. Similarly, in channel-II, the farmer's gross share and net share were 80 and 78 per cent of consumers price, respectively. The result reflects that there is a correlation between farmers’ share and the number of intermediaries in the channel i.e., the farmers’ share increased with the decreased of intermediaries of the channel. Dominance of intermediaries, lack of scientific and technical knowledge about storage, lack of drying facilities and not easy access to feed mills were the major problems faced by the farmers. Lack of capital, adequate market information, political unrest were the major problems of the intermediaries and irregular availability of maize, high storage charge, scarcity of skilled labour and load shedding were the major problems of the feed processors. Lack of storage facilities was also the major problems for both intermediaries and the feed processors.

Keywords: Maize marketing, Arathdar, Bepari, Faria

Location: Bogra, Dinajpur, Chuadanga and Thakurgong

Start Date: 01-09-2003

End Date: 30-07-2004

Program Area: Socio-economic and Policy

Non-commodity: Performance

Objectives:

i. To describe institutions, functions and channels of maize marketing; ii. To estimate the costs, margins and price spreads at different levels of marketing; iii. To study the cost of procurement, processing and distribution of the finished product by the feed processors; iv. To identify the problems and constraints faced by the maize traders; and v. To indicate the most effective means to solve those problems and constraints.

Methodology:

Four important maize growing areas, namely Bogra, Dinajpur, Chuadanga and Thakurgong districts were selected for the present study. Within the district, Sherpur thana of Bogra, Goraghat thana of Dinajpur, Chuadanga and Thakurgong sadar were purposively for the study. The sample of the study was the selected maize farmers, market intermediaries, maize processors and users of maize. From the selected villages, a list of farmers of maize growers was prepared. Total one hundred twenty farmers were selected taking 30 farmers randomly from each district. Total numbers of 68 intermediaries were selected for this study. Out of 68 intermediaries 16 were Farias, 40 beparies (chatal) and 12 were Arathdar (Assembler). Data were collected during the period of March to June/2004. In order to collect information for this study three sets of interview schedule were prepared. The first one was designed for collecting information from the farmers and the second one for the intermediaries. The third schedule was used for collecting data from maize processors namely feed mill and trader-cum-processors. The schedules were pre-tested and necessary modifications were made for ensuring consistency and applicability in actual field condition.

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

Article Link (Online Journal):

Funding Source:

1.

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The highest cost incurred by Farias were for transportation (66 per cent) followed by weighing and begging (7.39 per cent). Total per quintal cost of maize for beparies was Tk 26.73 and the buying cost was 31.58 percent of total marketing cost. The largest share (21 percent) of the total cost was incurred by beparies was for transportation. Farias purchased maize from the farmers at a price fo Tk. 710.59 per quintal and sold it to the Bepari at Tk 733.62 per quintal. Their average marketing cost was 16.91. Their gross marketing margin and net marketing margin were Tk 67.30 and Tk 19.63 respectively. The total cost of processing per quintal was highest (Tk.888.44) in trader cum processor compared to feed mills (Tk 880.48). Net profit of trader-cum-processors and feed mills was 19.72 and Tk 27.68/quintal respectively. All the correlation coefficients are very high and significant. This indicates that the markets are significantly correlated in respect of their price changes. Good communication among the trader and easy transportation facility has made the markets more competitive.

Knowledge Management: Report/Proceedings