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Marketing System, Seasonality in Prices and Integration of Onion Markets in Bangladesh

S. A. Sabur
Professor
Professor in the department of Cooperation & Marketing, Bangladesh Agricultrural University, Mymensingh.Email: shaikh_sabur@yahoo.com

M. Hossain h
Assistant Professor
Assistant Professor in the department of Cooperation & Marketing, Bangladesh Agricultrural University, Mymensingh.

M. S. Palash
Assistant Professor
Assistant Professor in the department of Cooperation & Marketing, Bangladesh Agricultrural University, Mymensingh.

Abstract/ Executive Summary:

The objectives of the study were to estimate costs and margins, seasonal price variation and to test market integration of onion. Primary and secondary data were used for this study. The higher marketing cost was incurred by Beparis and the lowest by Aratdars. On the other hand, retailers earned the highest net marketing margins. Farmer's net share of onion in lean period was higher than that in peak period. Seasonal price variation of onion was the highest in Rajshahi and the lowest in Dhaka market. Price was the lowest in March-April and the highest in November. The range and coefficient of variations of seasonal indices in different periods imply that seasonal price variation of onion in Bangladesh decreased in the recent past. Analysis of market integration shows that onion market in Bangladesh was well integrated.

Keywords: Marketing,Seasonality,Prices, Integration, Onion

Location: Pangsa, Baliakandi and Rajbari Sadar in Rajbari District

Start Date: 00-00-2005

End Date: 00-00-2005

Program Area: Socio-economic and Policy

Commodity: Onion

Objectives:

To estimate costs and margins, seasonal price variation and to test market integration of onion.

Methodology:

The study was based on both primary and secondary data. Primary data were collected from three Upazilas namely Pangsa, Baliakandi and Rajbari Sadar in Rajbari District, where the cultivation of onion was concentrated. A total number of 60 respondents (15 producers, 7 Farias, 9 Beparis, 5 Arathdars, 5 wholesalers and 19 retailers) were selected purposively. Two sets of survey schedules were prepared after pretesting. Primary data were collected by face-to-face interview during 2005. Moving average eliminates periodic movements if the extent period of moving average is equal to the period of the oscillatory movement sought to be eliminated. Thus for a monthly data, a 12 month moving average should completely eliminate the seasonal movements if they are of constant pattern and intensity (Tomek and Robinson, 1977, p.165). So, ratio to Moving Average Method was applied to see the seasonal price of onion in Dhaka, Chittagong, Rajshahi, Khulna, Barisal, Sylhet, and Rajbari markets. Secondary data were collected from the Department of Agricultural Marketing (DAM) during 1975 to 2004. For estimating market integration Chinn (1991) suggests that a number of general steps should be undertaken in analyzing time-series data. These steps include initial visual inspection of the data, subsequent stationary testing, as well as co-integration testing. An initial visual inspection of each data series can detect the presence of a trend. If a trend exists, then it becomes necessary to determine whether the series is trend stationary or difference stationary. A time series is said to be stationary if its mean, variance, and covariance exist and they are invariant to time. On the other hand, a non stationary time series possesses characteristics that are a function of time . However, a non stationary time series can always be transformed to be stationary if we take the difference between the values.

Source of Information: Bangladesh J. Agric. Econs XXIX, 1&2 (2006) 93-105

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The higher marketing cost was incurred by Beparis and the lowest by Aratdars. On the other hand, retailers earned the highest net marketing margins. Farmer's net share of onion in lean period was higher than that in peak period. Seasonal price variation of onion was the highest in Rajshahi and the lowest in Dhaka market. Price was the lowest in March-April and the highest in November. The range and coefficient of variations of seasonal indices in different periods imply that seasonal price variation of onion in Bangladesh decreased in the recent past. Analysis of market integration shows that onion market in Bangladesh was well integrated.

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