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Role of Intermediaries in Paddy/rice Marketing in of Bangladesh

M. Lutfur Rahman,
Department of Cooperation and Marketing Bangladesh Agricultural University, Mymensingh

M. Ali Akbar
Department of Cooperation and Marketing Bangladesh Agricultural University, Mymensingh

M. Ouamrul Islam
Bangladesh Rice Research Institute, Joydebpur, Gazipur

Abstract/ Executive Summary:

This study was undertaken to evaluate the role of intermediaries in paddy /rice marketing in Bangladesh, specially with reference to their marketing costs and margins. It was observed that the intermediaries greatly contributed to the marketing process of concentration and dispersion. As a class, the intermediaries were not found to be exploitative as their profit levels were relatively low. The farmers' share of consumers price was about 72 percent which does not seem to be unreasonable. The intermediaries, however, faced some problems like inadequate transportation and storage facilities. Removal of these obstacles through effective measures would improve the overall efficiency of the paddy/rice marketing systems.

Keywords: Rice marketing channels, Costs, Margins.

Location: 22 Districts

Start Date: 30-11-1982

End Date: 28-02-1984

Program Area: Socio-economic and Policy

Commodity: Rice

Objectives:

To collect information from the market intermediaries -----Pharias, Beparis, Aratdars, wholesalers and retailers. Another schedule (E) was used for interviewing rice processors such as kutials and millers.

Methodology:

The study under report constitutes a part of the food grain marketing survey conducted by the Bangladesh Rice Research Institute ( BRRI ) between November 1982 and February 1984. The study area which covered 22 districts (old) of Bangladesh was divided into four zones, viz. coastal area, Haor area, central zone and north-western zone. In all 35 primary markets, 19 assembly markets and 3 metropolitan markets covering all the four zones were purposively selectd for the field survey. For eliciting necessary information a total of 322 intermediaries engaged in paddy/ rice marketing were randomly selected. The intermediaries Interviewed included 48 pharias, 39 beparis. 39 Aratdars, 70 rice millers, 66 wholesalers and 60 retailers

Source of Information: Bangladesh J. Agril. Sci 18 (2): 207--214 : July, 1991

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The results of the study indicate,. that the intermediaries were performing an indispensable role in the marketing. of paddy/rice in Bangladesh by bridging. her gap between farmers and consumers. They performed the essential functions of assembling and dispersion as well as. created place, time and form utilities. The marketing costs incurred by them do not appear to be high considering. the variety of services they rendered. The efficiency of the intermediaries was retarded to some extent due to various problems. Unpaved roads and lack of quick modes of transport increased the marketing cost in primary and assembly markets. Dearth of storage facilities in these markets also adversely affected their business. Improvement of ferry services, better transport, loading and unloading facilities, storage facilities and other marketing infrastructures would go a long way to facilitate the business activities. Effective measures, both at public and private levels, to remove such obstacies would increase the overall efficiency of the paddy /rice marketing system in Bangladesh.

Knowledge Management: Journal