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An Agribusiness Study on Chewing Sugarcane in Khagrachhari District of Bangladesh

M. M. Rahman
Department of Agricultural Marketing and Business Management, Sylhet Agricultural University, Sylhet-3100

S. A. Sabur
Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh-2202

M. J. Alam
Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh-2202

M. J. Uddin
Bangladesh Sugarcane Research Institute, Ishurdi-6620, Pabna, Bangladesh

Abstract/ Executive Summary:

The present study was an attempt to examine the agribusiness of commercial farms producing chewing sugarcane in Khagrachhari district of Bangladesh. This study was based on a sample survey in which 35 farmers of Khagrachhari Sadar Upazila and 25 traders of Khagrachhari and Chittagong district were interviewed. The primary data were collected from three categories of farmers (small, medium and large) and different traders (Paiker or Bepari, Arathdar, retailer and juice maker). In the study area, per hectare production cost of chewing sugarcane (with intercrops) was highest for the large farmers. But the net return and benefit cost ratio (undiscounted) were found the highest for small farmer. The marketing cost was found higher for juice maker compared to other intermediaries. Net marketing margin was also found higher for juice maker but the return on operating capital was the highest for the Arathders.

Keywords: Agribusiness, Chewing sugarcane, Channel, Cost, Margin

Location: Khagrachhari and Chittagong district.

Start Date: 00-09-2012

End Date: 00-10-2012

Program Area: Socio-economic and Policy

Non-commodity: Profitability

Objectives:

i. To examine the profitability of cultivating chewing sugarcane;

ii. To evaluate the existing marketing system of chewing sugarcane;

iii. To estimate the marketing cost and margin of chewing sugarcane at different stages of marketing.

Methodology:

The present study was conducted in some selected areas of Khagrachhari district because of the fact that during last several years chewing sugarcane production has Increased sharply in this area. Data were collected from farmers in Khagrachhari Sadar Upazila and from market participants in Khagrachhari and Chittagong. In the present study, the sample included the chewing sugarcane growers and different market participants such as Paiker or Bepari, Arathdar, retailer and juice maker. Stratified random sampling technique was adopted to select the 35 chewing sugarcane farmers of which 20 are small, 10 are medium and 5 are large and convenience sampling technique was adopted to select 25 different market participants comprising 8 Paikers or Beparis, 5 Arathdars, 7 retailers and 5 Juice makers. Selected respondents were interviewed directly with the help of pre-tested survey schedules during September to October, 2012. Collected data were checked and crosschecked before transferring to the computer. Mostly tabular method of analysis was adopted and to interpret the findings, descriptive statistics (averages, ratios and percentages) were used to fulfill the objectives. For estimating gross return, net return, benefit cost ratio (BCR), gross marketing margin, net marketing margin and return on operating capital.

Source of Information: Bangladesh Journal of Sugarcane. Vol: 33&34, pp: 114-123, ISSN 1991-8925, August-2013

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

Per hectare production cost of chewing sugarcane (with intercrops) was highest for the large farmers. But the net return and benefit cost ratio (undiscounted) were found the highest for small farmer. The marketing cost was found higher for juice maker compared to other intermediaries. Net marketing margin was also found higher for juice maker but the return on operating capital was the highest for the Arathders.

Knowledge Management: Journal