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Production and Supply Responses of Major Spices in Bangladesh

M Kamruzzaman
Department of Agricultural Economics, Bangabandhu Sheikh Mujibur Rahman Agricultural University, Gazipur

H Takeya
Professor
Graduate School of Bioagricultural Sciences. Nagoya University. Japan

Abstract/ Executive Summary:

The present study depicted production and supply response of major spices (chilli, onion, garlic,turmeric, ginger and coriander seeds) in Bangladesh for the period from 1972/73 to 2003/2004. The area and production growth rate of all spices were positive except production of garlic. Yield growth rate was positive for winter chilli , summer chilli. turmeric and coriander seed, though that was negative for onion, garlic and ginger. Previous years' area under spices showed positive and significants impact whereas previous years' price of spice, time trend and rainfall showed in significant impact on current year's area of different types of spices. Price elasticity in the short and long run was highly inelastic. Coriander seed growers needed less number of years whereas turmeric growers needed highest number of years for achieving desired level of area under cultivation.

Keywords: Supply reponse, major spices, Bangladesh

Location: Bangladesh

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity:

Objectives:

To achieve the following objectives: (l )to estimate the growth rates of hectare, production, yield and prices of spices, (2) to analyze the supply response of spices and (3) to find out the short run and long run price elasticity and speed of adjustment of the spices.

Methodology:

The study was based on secondary data . The data on acreage, production, yield and prices of different types of spices were obtained from the various volumes of Statistical Yearbook of Bangladesh such as BBS 198 1, BBS 1989 and that of Agricultural Yearbook of Bangladesh (BBS 1995, BBS 1998, BBS 2001, BBS 2005) published by the Bangladesh Bureau of Statistics. Annual rainfall data were also collected from the same sources. The period of study was from 1972/ 1973 to 2003/04.Growth rate was calculated to find out per annum increase or decrease of area. production or yield over the period of 1972/73 to 2003/2004. Through semi -log growth model it can also be seen whether trend of acreage, production and yield is positive or negative. The growth model is as follows:Y_t= Y₀(I +r)^tln Yt=ln Y₀+ t ln(l+r) Where. In is the natural log,Y,is either hectare or production or yield at time l. t is the time trend an d r is the growth parameter to be estimated. Speed of adjustment implies the number of years required to reach to the level of farmers expected area under spices cultivation. It was estimated using the formula (I - B)^N=(Nerlove 1956), Where, B = Coefficient of adjustment and N = Number of year required to achieve 95% target of the expected area under cultivation.

Source of Information: Aun. Bangladesh Agric. ( 008) /2( I): /31-/39

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

Area of ginger cultivation increased by 1 .24% per annum over the study period. whereas the production was increased by only 0.52%. Which indicated that increase in production of ginger was much less than that of acreage. The disparity between acreage and yield was due to the facts that yield of ginger decreased by 0.72% per year. Though area increased by 1.24% per annum. There is a very little scope for increasing further area under ginger cultivation because of the pressure of land for growing other crops. Initiatives should therefore be taken to increase the yield of ginger for higher production. Area of summer chilli increased by 1.92% though the production increased by 2.73% thus, yield was higher than that of area increase. The rate of production increase was higher than area increase was due to the yield increase by 0.8 1% per annum. Area under turmeric, coriander seed, onion also increased by 1.03%. 1.09% and 0.36% per annum respectively over the study period. Positive growth rate of spices area indicates that farmers are interested to grow spices. As land is scarce in Bangladesh, fallow lands can be brought under spices cultivation to increase further spices production. Exponential growth rates were estimated to show the trend of hectare, production and yield of chilli , onion, garlic, ginger, turmeric and coriander seed. From the analysis it was found that production trend was positive for most of the spices. So far, this production increase carne from mostly of area increase except turmeric and chilli . erl ovi an supply response model al so showed that cunent year" s hectare mostly depended on previous yea r 's hectare. Previous year 's price, technological progress and rain fall did not show any significant impact on area increase. But it is very difficult to bring more land under spices cultivation from the existing cultivated area. Increasing cropping intensity could increase area bringing fallow lands into cultivation and therefore, production will also be increased. However, yield growth may play a vital role increasing spices production

Knowledge Management: Journal