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Maize Marketing Systim in Selected Areas of Bangladesh

M. A. Matin
Agricultural Economics Division, Bangaldesh Agricultural Research Institute, Gazipur-1701, Bangladesh

M. S. Rahman
Agricultural Economics Division, Bangaldesh Agricultural Research Institute, Gazipur-1701, Bangladesh

M. R. Karim
Agricultural Economics Division, Bangladesh Agricultural Research Institute, Gazipur-1701, Bangladesh

M. I. Hossain
Agricultural Economics and Rural Sociology, BARC, Farmgate, Dhaka-1215, Bangladesh.

Abstract/ Executive Summary:

The study was undertaken during 2005 to know the costs, margins and price spreads at different levels of marketing channels of maize. According to the volume of maize five major channels were identified as the dominant in the study areas of which channel-I: Farmer_Faria-Bepari_Aratdar-Cum Wholesaler-Feed Mill/Processor-Poultry Farm ranked first. Price spreads and producers’ share of consumers’ gross share was 78.63 per cent and net share was 76.80 percent per quintal of maize. Similarly, in channel-III, the farmers’ gross share and net share were 80.14 and 78.28 percent 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 decrease of intermediaries of the channel. If the farmers sell their maize directly to the feed millers/feed processing units. They get more benefits, otherwise they loss benefits. In this respect entrepreneurs should be encouraged to establish feed mill adjacent to maize growing zones. Provision of loans may be made through the nationalized bank to the private sector for expansion of feed malls in rural areas. The major problems were found dominance of intermediaries, lack of during facilities, lack of adequate market information, high storage charge and load shedding.

Keywords: Maize Marketing, Maize, Maize storage, Problem of storage, Load shedding, Marketing at farmers’ and Traders levels

Location: Bogra, Dinajpur, Chuadanga and Thakurgaon districts

Start Date: 00-03-2005

End Date: 00-06-2005

Program Area: Socio-economic and Policy

Commodity: Maize

Objectives:

1. To find out the channels of maize marketing; estimate the costs, margins and price spreads at different levels of marketing; and

2. To identify the problems of marketing at farmers’ and traders levels.

Methodology:

Four important maize growing areas, namely Bogra, Kinajpur, Chuadanga and Thakurgaon districts were selected for the present study. Goraghat Thana of Dinajpur, Chuadanga and Thakurgaon sadar were purposively selected for the study. One village of each upazila was selected was with the help of knowledgeable persons and personnel of agricultural extension of respective upazila. The sample of the study included maize farmers, market intermediaries, maize processors and users of maize. A list of all maize were growers and traders were prepared separately from the selected areas. From the list, 120 farmers were selected randomly taking 30 farmers from each village. Sixty eight intermediaries were selected for this study. Out of 68 intermediaries 16 were farias, 40 beparies (chatal) and 12 were radar (assembler). The maize processors were divided into two categories viz.; feed mill and two categories viz.; feed millers and trader coprocessors. Eight feed mills and twelve traders –cum-processors were selected for the study. Simple random sampling technique was used to select the farmers, intermediaries and feed processors. Data were collected during the period from March to June/2005 with face to face interview method by structured pre tested interview schedules.

Source of Information: Bangladesh Journal of Agriculture, Vol: 32(2), Page:19-27, ISSN: 0253-5408

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

If the farmers sell their maize directly to the feed millers/feed processing units, they get more benefits, otherwise they loss benefits. Reducing of marketing tiers and middlemen can create more benefits to the farmers. In this respect, entrepreneurs should be encouraged to establish feed mills adjacent to maize growing zones. Provision of loans may be made through the nationalized bank to the private sector for expansion of feed mills in rural areas. For regular supply of maize in the processing mill, new thrust on research needs to be in the direction of developing HYV (both rabi and kharif) season.

Knowledge Management: Journal