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Marketing Efficiency of Lentil in Some Selected Areas of Bangladesh

M. A. Hossain
Senior Scientific Officer
Agril. Economics Division, BARI, Gazipur.

M. A. Matin
Senior Scientific Officer
Agril. Economics Division, BARI, Gazipur.

Q. M. S. Islam
Senior Scientific Officer
Agril. Economics Division, BARI, Gazipur.

Q. M. Alam
Scientific Officer
Agril. Economics Division, BARI, Gazipur.

Moniruzzaman
Chief Scientific Officer
Agril. Economics Division, BARI, Gazipur.

Abstract/ Executive Summary:

The present study highlighted the important issues of marketing and price behaviour of lentil in Bangladesh. The study was confined in two lentil producing districts namely Pabna and Jessore. A total of 60 farmers were selected by using simple random sampling while 40 traders were selected as samples from each group by using proportionate random sampling technique. Six performance indicators were used for measuring marketing efficiency. On the basis of quantity, about 67% lentil is marketed in the secondary market while it was only 33% in the primary market. Among the selected three major channels, the producers' share was the highest in channel-III which was considered as an efficient marketing channel. Increase in domestic production, inter-cropping of lentil with other crops, storage facilities, efficient cooperative marketing system, fixation of minimum support price and effective price policy measures are some of the major alternatives to achieve higher production to meet shortfall of demand for lentil in Bangladesh.

Keywords: Marketing channel, Marketing margin, Marketing efficiency, Price behavior

Location: Pabna and Jessore

Start Date: 00-03-2008

End Date: 00-05-2008

Program Area: Socio-economic and Policy

Commodity: Lentil

Objectives:

1. To estimate the quantity marketed, marketing cost and marketing margin at different market intermediaries.

2. To examine marketing channels, marketing efficiency and price spread for each marketing channels.

3.To suggest guidelines to develop an appropriate price policy for marketing of pulse crops in Bangladesh.

Methodology:

In order to know the price behaviour, one important primary market and one important secondary market from each of the two major growing districts, (Pabna and Jessore) was chosen considering the volume of product assembled and distributed in different places. A complete list of all lentil growers from every selected village was prepared with the help of farmers for selecting the sample. The growers disposed off their produce through different intermediaries i.e. faria, bepari, milller, wholesaler, retailers etc. Thus, a list of these intermediaries was prepared with the help of other different intermediaries prevailing in the respective markets. Lentil growing farmers and intermediaries were the respondent as primary sources of data for this study. A total of 60 farmers taking 30 farmers from each district was selected through random sampling technique. For traders, a total of 10 traders from each primary and secondary market each district was randomly chosen. Proportionate random sampling method was used for selecting each group of traders. Thus, the final sample consisted of 60 farmers and 40 intermediaries for this study. Three sets of interview schedules were prepared for collecting desired data from the lentil growers, traders and processors. Both primary and secondary data were collected for this study. Primary data were collected from the selected respondents through face to face interview method. Data were collected during March to May 2008, at the end of crop harvest. The secondary data on area, production, yield and prices fer wholesale and farm harvest prices etc. during period of last year were obtained from the different issues of year book of Agricultural Statistics of Bangladesh. Data were analyzed through tabular and functional analysis for useful interpretation. Major marketing channels were identified based on observing the flow of lentil from producer to ultimate consumer through different intermediaries. The data collected from different marketing functionaries were analyzed to estimate marketing cost, marketing margins and price spread in case of each observed channel for the crop. Six performance indicators were used for measuring efficiency at different marketing channels. These indicators are (i) Producers' share (1₁), (ii) Marketing cost (1₂), (iii) Middle mens' margin (1₃) (iv) % of product run through channels. (1₄), (v) Peak period seasonal price variability (1₅), (vi) Lean period price variability (1₆).

Source of Information: Eco-friendly Agril. J. 1(4), 236-242, 2008(November)

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

Study of price differences in primary and in secondary markets provides opportunity to the farmers to take decision about place of sale and time of sale to take advantages of price differentials prevailing. As the farmers received higher price, they are suggested to sell their product to the millers in the secondary market to obtain the maximum price for their product. Thus, the channel III, i.e. Producer - Miller- Retailer- Consumer was considered as the best channel to obtain the highest benefit for marketing of lentil. In order to increase the area under lentil, there is a need to develop improved varieties of lentil, which could give higher yield than the present varieties. Some of the important aspects that deserve immediate attention for the research and future production as well as marketing systems for lentil in Bangladesh are stated below: If the farmers sell their lentil directly to the millers processing units they get more benefit. Reduction of marketing tiers and middlemen can create more benefit to the farmers. In this respect entrepreneurs should be encouraged by providing credit to establish mill adjacent to lentil growing zones. For efficient marketing system in lentil growing districts, producers' cooperative societies should be formed for purchasing of the produce to provide the support price to marginal and small farmers who are forced to sell their produce just after the harvesting. For obtaining better prices by the farmers minimum support prices should be announced. Furthermore, storage facilities should be developed to check post-harvest sales among the farmers. To meet up shortfall of demand research efforts should be made towards varietals improvement or lentil for increasing yield. Attention production should be given to increase domestically through inter-cropping of lentil with other crop and use of marginal land under Lentil cultivation.

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