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New Marketing System of Fertilizer in Bangladesh : an Evaluation

M.H.A. Rashid
Department of Agricultural Economics Bangladesh Agricultural University Mymensingh-2202 Bangladesh

A.N.M. Ahsan Habib
Department of Agricultural Economics Bangladesh Agricultural University Mymensingh-2202 Bangladesh

S.K. Raha
Department of Agricultural Economics Bangladesh Agricultural University Mymensingh-2202 Bangladesh

Abstract/ Executive Summary:

The present study is an attempt to examine the performance of the new marketing system (NMS) of fertilizer. Data for the present study were collected from 30 traders and 30 farmers of Kotwali thana (accessible area) and Brahmapara thana (less accessible area) of Camilla district. The level of availability of fertilizers to the different groups of farmers was also examined. Some indicators such as stock information, price spread, farmers' opinion about price fluctuation, availability and fertilizer use were considered to make a comparison between NMS and pre-NMS period. New entrepreneurs have entered the fertilizer business.

Keywords: Fertilizer, Marketing, Wholesaler, Retailer

Location: Kotwsli and Brahmapara thanas of Camilla district

Start Date:

End Date:

Program Area: Socio-economic and Policy

Non-commodity: Market analysis

Objectives:

i. To study the present fertilizer marketing system.

ii. To inquire into the level of availability of fertilizers.

iii. To evaluate the development of entrepreneurship.

Methodology:

Kotwsli and Brahmapara thanas of Camilla district were selected purposively as the study area. Kotwali is well connected with the district headquarters and Brahmapara thana was not well connected with district headquarters. The two thanas were labelled as accessible and less accessible area respectively in this study. The sample included wholesalers, retailers of fertilizer and farmer-user. Ten wholesalers and 20 retailers were selected purposively of which 6 wholesalers from accessible area and 4 from less accessible area, 9 retailers from the accessible area and 11 from less accessible area. Fifteen farmers taken from each of the thanas were selected on the basis of farm size as small farms (having 0.2 ha to 1 ha of farm size), medium farms (having 1.01 ha to 2.02 ha of farm size) and large farms (having more than 2.02 ha of farm size). Two sets of pre-tested interview schedules were used to collect data from traders and farmers. Data related to 1992-93 crop year.

Source of Information: Bangladesh J. Agril. Sci. 26(1): 59-65, January, 1999

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The retailers lift maximum 10 tons of fertilizer per lift. They purchase their fertilizers from the wholesalers-! and wholesalers-!I and their buyers are the farmers. Some socio-economic changes have already taken place in the meantime. However, in the light of some indirect measures such as stock information, price and farmers' opinion about price fluctuation, availability of fertilizers and the amount of fertilizer applied have been used to assess the availability of fertilizers. In the study area, it was found that about 25 percent of the retailers did not have any fertilizers at the time of interview. Again 35 percent and 40 percent of the stock holders did not have TSP and MP respectively. It was further found that stock maintained per trader was only 3.55 tons of fertilizers of which about 80 percent was urea, 12 percent TSP and about 8 percent MP. Retail prices were higher in the less accessible area than that of accessible area. During the Bora season the average price difference of urea (Tk 200 per ton) between the two areas would appear to the due to the higher transport/handling cost. The difference was similar between the accessible and less accessible areas in Aus season but less in Aman season. In case of TSP the average price difference between accessible and less accessible areas were TK 300, TK 100 and TK 200 per ton, respectively during the Boro, Aus and Aman seasons. For MP the average price difference between the above mentioned areas and seasons were TK 150, TK 200 and 250 per ton respectively.In the accessible area gross margin per ton was Tk 338.00 and in the less accessible area it was Tk. 303.00 per ton. The corresponding net margins were Tk. 110.00 and Tk.79.00 per ton. The gross margins and net margins in the accessible area were found to be higher than those of less accessible area. Average gross margin of the retailers in the study area was Tk. 363.00 and net margin was Tk. 122.00 per ton. The gross margin of the retailers in the accessible and less accessible area were Tk.355.00 and Tk. 375.00 per ton respectively. The net margins of the retailers were Tk. 159.00 and Tk. 64.00 in accessible and less accessible area respectively, which constituted 44.23 percent and 17.06 percent of the gross margins in the corresponding areas.

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