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Marketing Efficiency of Different Channels for Potato in Selected Areas of Bangladesh

A. S. M. Anwarul Huq
Senior Scientific Officer
Agricultural Economics Division, Regional Agricultural Research Station, Bangladesh Agricultural Research Institute, Jamalpur

Shamsul Alam
Professor
Department of Cooperation and Marketing, Bangladesh Agricultural University, Mymensingh.

Shaheen Akter
Professor
Department of Economics, Shahjalal University of Science and Technology, Sylhet.

Abstract/ Executive Summary:

The present study attempts to examine the marketing efficiency for different potato marketing channels by using six performance indicators. The study revealed that local marketing channel-II (Farmer - Bepari - Consumer) was efficient while the channel which supply potato to the major consuming area i.e. channel-VI (Farmer - Aratdhar - Paiker - Retailer - Consumer) was more efficient. The channel-VI by which farmers sell potato through local Aratdhar need to be encouraged. By the indication of producers' share to consumers' price (62 to 85 per cent) and other performance indicators, potato market can be considered as efficient

Keywords: Marketing efficiency, Different channel, Potato

Location: Munshigonj, Comilla and Bogra

Start Date: 00-01-2001

End Date: 00-12-2001

Program Area: Socio-economic and Policy

Commodity: Potato

Objectives:

To examine the marketing efficiency of different marketing channels for potato

Methodology:

Selection of the Study Area, Sources of Data and Sampling Technique: Potato farming is done in all areas of Bangladesh either in large quantity or smaller proportion. In terms of output production, three areas, namely - Munshigonj, Comilla and Bogra are at the top of the list. The collective contribution of the three areas towards national output is 47% and at the same time these three areas represent about 36% of the total area under cultivation (BBS, 2004 pp.110-111). Cultivators of potato were selected from the above selected areas through simple random sampling technique. The list of potato growers was prepared through a preliminary short survey, after which they were selected by using random table. Intermediaries were selected from different points of the marketing channel. A large number of intermediaries were involved in potato marketing. After growers, intermediaries involved in potato marketing channel were: the Faria¹, Bepari², Aratdlaar³, Paiker⁴ and retailer⁵. Marketing related data were collected from selected 108 (36 for each selected area) potato growers. For intermediaries, 9 Farias, 30 Beparis, 9 Aratdhars, 6 Paikers, 3 stockist and 25 retailers were selected from the above selected areas including major consuming area Dhaka and Gazipur. The reference period for the survey was a full calendar year of 2001.

Source of Information: Bangladesh. J. Agric. Econs XXVII, 1 (2004) 67-79

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The study revealed that marketing channel-Il (Farmer-Bepari-Consumer) was efficient channel, which was a local channel. From the marketing point of view, it is more important to supply potato to the non-agricultural sector that is major consuming area. Among the channel which supply potato to the major consuming areas, channel-VI (Farmer-Aratdhar-Paiker-Retailer- Consumer) was more efficient. The channel-VI by which farmers sell potato through local Aratdhar need to be encouraged. By the indication of producers' share to consumers' price (62 to 85 per cent) and other performance indicators, potato market can be considered as efficient. It would be better for the farmers in the area if they would organize in a body and perform group marketing. As an organized body they would also acquire a better bargaining power for their products over the powerful middlemen that manipulate and control the price of potato in the marketing system. These will increase farmers' interest/profit considerably.

Knowledge Management: Journal