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Market Effects on the Production and Profitability of Sugarcane, Sugar and Gur in Bangladesh

M. M. Alam
Bangladesh Sugarcane Research Institute, Ishurdi, Pabna, Bangladesh.

M. I. Haque
Bangladesh Sugarcane Research Institute, Ishurdi, Pabna, Bangladesh.

Abstract/ Executive Summary:

The study was conducted during 1999-2000 cropping season in two mills zone namely Thakurgaon and Rajshahi sugar mills and three non-mills zone districts of Sirajganj, Nawabganj and Gazipur to identify the marketing system, organization and marketing constraints, cost, margin and efficiency to formulate an effective marketing policy for sugarcane. In mills zone, the farmers marketed a large portion of sugarcane in the sugar mills (52.37 %) for fixed price followed by cane diversion for gur making (31.79 %) and the rest amount was used for seeds (15.84%). In non-mills zone, the farmers use larger portion of their sugarcane for self gur production (50.90%) followed by sale to gur maker (37.59%) and the rest amount of cane (11.51 %) used for seed cane and seed sale to others. The study showed that marketing cost of sugar per ton was higher for dealer (Tk. 647.95) followed by retailer (Tk. 472.75) and wholesaler (Tk. 333.51) respectively. Gur marketing cost per ton was found higher for wholesaler (Tk. 687.66) followed by 'Paiker' (Tk. 481.82), retailer (Tk. 385.96) and 'Aratder' (Tk.252.25) respectively. The study also showed that per ton sugar marketing margin was found higher for retailer (Tk. 2819.25) followed by wholesaler (Tk. 765.49) and dealer (Tk. 618.05) respectively. Gur marketing margin per ton was found higher for retailer (Tk. 1529.04) followed by 'Aratder' (Tk. 1074.75), 'Paiker' (Tk. 1003.18) and wholesaler (Tk.620.34) respectively. In case for sugar marketing, the efficiency of wholesaler was higher (98.88%) followed by retailer (98.58%) and dealer (97.75%). On the other hand, for gur marketing the efficiency of 'Aratder' was higher (98.63%) followed by retailer (98.22%), 'Paiker' (97.17%) and wholesaler (96.52%).

Keywords: Sugarcane, Sugar, Gur, Marketing constraints, Cost, Profitability.

Location: Sirajganj, Nawabganj, Gazipur

Start Date: 01-11-1999

End Date: 31-12-2000

Program Area: Socio-economic and Policy

Non-commodity: Market analysis

Objectives:

1. To identify the marketing system, organization and marketing constraints, cost, margin and efficiency,

2. To formulate an effective marketing policy of sugarcane, sugar and gur in Bangladesh.

Methodology:

The study was conducted during 1999-2000 cropping season in two mills zone namely Thakurgaon and Rajshahi sugar mills and three non-mills zone districts of Sirajganj, Nawabganj and Gazipur. Data have been collected from 60 sugarcane farms of two selected mills zones and 87 sugarcane farms of three selected non-mills zones. In total of 147 sample farmers were interviewed from 47 villages of both mills and non-mills zone districts and collected sugarcane, sugar and gur marketing information of their produced sugarcane. Random sampling technique was employed to collect data from the sugarcane farms, gur makers and from different functionaries of their marketing channel. Thirty samples were also selected from each marketing intermediaries like retailer, 'Paiker' 'Aratdar' and wholesaler about gur and sugar marketing from metropolitan cities like Dhaka and Rajshahi. Data have been collected by the investigators with prescribed questionnaire. Descriptive and statistical methods were employed to analyze the data. Marketing cost, marketing margin were calculated by some mathematical formula and efficiency was calculated by Shepard Model. The study has identified the existing sugarcane marketing constraints and its problems faced by the farmers as well as sugar mills in Bangladesh. It has also identified their marketing organization, marketing channel, marketing margin, marketing cost and marketing efficiencies. Finally, it suggested policy guidelines for efficient and sound marketing system for sugarcane, sugar and gur in Bangladesh.

Source of Information: BANGLADESH JOURNAL OF SUGARCANE, Vol. 24-27, pp. 47-56, July 2005, ISSN- 1991-8925.

Article Link (Online Journal):

Funding Source:

1. Government

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The study has identified the existing sugarcane marketing constraints and its problems faced by the farmers as well as sugar mills in Bangladesh. It has also identified their marketing organization, marketing channel, marketing margin, marketing cost and marketing efficiencies. Finally, it suggested policy guidelines for efficient and sound marketing system for sugarcane, sugar and gur in Bangladesh.

Knowledge Management: Journal