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Empirical Estimation of Marketed Surplus of Rice in Bangladesh: a Critical Review

M. A. Jabbar
Professor
Ex-Senior Agricultural Economist and Team Leader, International Livestock Research Institute, Nairobi, Kenya. Email: MJabbar2@gmail.com

Abstract/ Executive Summary:

Understanding marketed surplus and marketing behavior of producers helps design technology, policy and institutions to facilitate the process of commercialization of agriculture. In this paper, empirical studies on marketed surplus of rice have been reviewed with a focus on the concepts and methods used, their strengths and weaknesses, and some recommendations have been made to improve estimation methodology in future studies.

Keywords: Empirical estimation,Marketed surplus, Rice

Location:

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Rice

Objectives:

To assess the empirical studies on marketed surplus of rice

Methodology:

The flow of food grains and prices in the market will depend on marketed surplus of producers and their marketing patterns as well as the stocking and marketing behavior of traders. Marketed surplus of food grain among smallholder producers is of interest to researchers and policy makers because market participation is essential for farmers for raising farm income and welfare. Also adequate regular supply of food grain in the market is essential to keep food prices at affordable levels for consumers. As the economy develops, number and proportion of population engaged in agriculture usually decline though the size of the overall population increase. Consequently, food grain producers need to produce not only enough for themselves but also for an expanding non-producing consumer in both rural and urban areas so that dependence on import or aid can be avoided or at least minimized. On the other hand, if surplus above national food need is produced, then there will be scope for export of food grain to raise both producers' and national income. Understanding marketed surplus and marketing behavior of producers helps design technology, policy and institutions to facilitate the process of commercialization of agriculture.

Source of Information: Bangladesh J. Agric. Econs. XXXIII, 1& 2(2010) 1-22

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The results of this study is that gross marketed surplus ratios were almost similar for the three farm size groups- in fact the highest ratio was for medium farms, and net marketed surplus ratios of medium and large farms were about the same. This would be normally unexpected as the author has shown in the paper that the size distribution of the sample was not too far from the national level size distribution, so much higher marketed surplus for larger farms would be normally expected. This raises the question on whether outputs were adequately and properly measured and whether exclusion of non-sale and non purchase transfers and transactions including non-adjustment of any amount due to `seed, feed, wastage' rendered the estimated output and marketed surplus ratios - both gross and net.

Knowledge Management: Journal