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Marketing Channels, Participant's Characteristics and Functions of Intermediaries of Raw Jute Marketing from Farmer to Foreign Buyer

S.M. Moniruzzaman
Bangladesh Jute Research Institute

S.A.Sabur
Professor
Department of Co-operation and Marketing, Bangladesh Agricultural University, Mymensingh

M. Mahbubul lslam
Bangladesh Jute Research Institute

M.A. Salam
Bangladesh Agriculture Research Institute, Gazipur.

M. Ali Alamgir
Bangladesh Jute Research Institute

Abstract/ Executive Summary:

The present study was an attempt to examine the raw jute marketing system in some selected areas of Faridpur district of Bangladesh. The study was based on both primary and secondary data. Data were collected. during March to April, 2007. The study used both descriptive and analytical techniques. Five marketing channels were identified in the present study. They are: Farmer → Faria → Kutcha baler→ Pucca baler/exporter → Mill/foreign buyer, Farmer → Bepari → kutcha baler → pucca baler/exporter → Mill/foreign-buyer, Farmer → kutcha baler → pucca baler/exporter → mill/foreign buyer, Farmer → Faria → pucca baler/exporter → Mill/foreign buyer and Farmer → Bepari → Mill/pucca baler → Foreign buyer. Results revealed that the jute farmers sell their jute to the Farias and Beparis. Farias sold unsorted jute to the Beparis who usually handle a large volume. The Beparis sold loose jute to the Kutcha balers, Pucca balers and to the mills. Kutcha balers purchased loose jute from farmers, Farias and Beparis and processed it into Kutcha bales. The processed jute sold to the Pucca balers or exporters and jute mills through Dalalslbrokers. The Aratdars are commission agents having fixed. establishment who operated between traders of jute on the one hand and balers and mills on the other hand, and charge a fixed commission. Pucca balers bought jute in loose form from Faria and also form of Kutcha bales from Kutcha balers. Aratdar sold to the exporters and millers with the help of Dalals. Exporters operated the terminal market and procured loose jute from dealers of jute and baled jute from Kutcha balers and Pucca balers: They sold baled jute to the mills through Dalals and Pucca bales to the foreign buyers. Foreign buyers purchased Pucca bales from exporters and processed jute from mills with the help of international brokers.

Keywords: Jute (Corchorus spp.), Market, Channel, Sale, Purchase

Location: Bangladesh Bureau of Statistics (BBS), Department of Agriculture Marketing (DAM), Bangladesh Bank, Bangladesh Jute Association (BJA), Bangladesh Jute Research Institute (BJRI)

Start Date: 00-03-2007

End Date: 00-04-2007

Program Area: Socio-economic and Policy

Commodity: Jute

Objectives:

To analyze the existing marketing system of raw jute in important growing areas.

Methodology:

The study used both descriptive and analytical techniques. To collect data for the present study questionnaire was used and observational methods was followed. Large numbers of farmers as well as jute trading organizations participated in Faridpur market. Different categories of participants involved in raw jute marketing in this district were interviewed by using questionnaires. Secondary market at Faridpur and terminal market at Narayangonj were selected for its being large concentration point of raw jute. For selection of the study area, a reconnaissance survey was carried out during the first visit to the study area. Some preliminary visits were made in two villages, namely, Sadar bera and Salta of Nagor Kanda Upazila under Faridpur district to select the areas for the present study. On the basis of concentration of jute arrivals Kanaipur bazar, Talma Bazar and Krisnapur bazar under Faridpur Sadar, Nagar Kanda and Sadarpur Upazilas of Faridpur district were selected as study areas for collecting information on the marketing aspect. Total sample size of the study was 70, which consisted of 14 jute growers and 56 jute traders. A list of all jute growers in Sadar Bera and Salta villages under Nagor Kanda Upazila of Faridpur district were prepared. Then 14 jute growers were selected randomly from the list.The intermediaries dealing with jute trading were recognized into six groups namely Faria, Bapari, Aratdar, Kutcha baler, Pucca baler and exporter. From different stages of jute marketing 15 Farias, 10 Beparis, 12 Artdars, 7 Kutcha balers, 6 Pucca balers and 6 exporters were selected as respondent for the study. Among them 5 Farias, 3 Beparis, 3 Aratdars and 3 Katcha baler from Kanaipur bazar of Faridpur Sadar, 5 Farias, 4 Beparis and 3 Aratdears from Talma bazar at Nagor Kanda, 5 Farias, 3 Beparis and 3 Aratdars from Krisnapur of Sadarpur Upazila and 4 katcha balers 3 Aratdars and 6 Pucca balers and 6 exporters from Narayangonj terminal market of Narayangonj were selected. Two different types of interview schedules were prepared. First type of schedule was prepared for collection of data from the jute growers and the second for studying raw jute traders. Those were pre-tested and finalized after necessary modification and correction. Primary data were collected by personal field visits at the study areas. During data collection the objectives of the study were clearly explained to the respondents so that they could respond freely. They answered completely from their memory. So, it is very difficult to collect accurate data from them. To overcome this problem, all possible efforts were made by the researcher himself to ensure the collection of reasonably accurate data from the field on recall basis.

Source of Information: Bangladesh Jute Research Institute, Vol: 29 (1-2), PP: 47-57, 2009 ISSN: 0253-5424

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

On the basis of the above findings it can be concluded that a large number of people were involved in the marketing of raw jute. At best it can be said that the present marketing system is not inefficient. Proper and adequate steps to develop this sector in require to making the business more profitable to the entrepreneurs. There is a great possibility to expand the jute marketing all over the country. Irregular marketing practices should be checked and better marketing facilities ought to be provided in order to improve the performance of jute market.

Knowledge Management: Journal