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Seedless Lemon Marketing 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, Bangladesh

M. A. Matin
Senior Scientific Officer
Agricultural Economics Division, BARI, Joydebpur, Gazipur-1701, Bangladesh

A. K. M. Habibul Haque
Principal Scientific Officer
Agricultural Economics Division, BARI, Joydebpur, Gazipur-1701, Bangladesh

N. Islam
Chief Scientific Officer
Regional Agricultural Research Station, Bangladesh Agricultural Research Institute, Jamalpur, Bangladesh

Abstract/ Executive Summary:

Channel-Ill [Farmer-Aratder (Local)-Bepari-Aratder (Dhaka)- Retailer (Dhaka-Consumer] obtained the highest marketing cost (Tk. 283/thousand) followed by channel-iv [Farmer-Aratder (Local)- Bepari-Aratder (Dhaka)-Paiker (Other than Dhaka district-Retailer (Other than Dhaka district)-Consumer] (Tk. 279/thousand). whereas channel-II [Farmer-Bepari-Aratder (Dhaka)-Paiker (Other than Dhaka district)- Retailer (Other than Dhaka district)-Consumer] obtained the lowest marketing cost (Tk. 261/thousand) for seedless lemon. Net margin Tk. 492/thousand was the highest in channel-Il and the lowest Tk. 466/thousand in channel-III. Differences of marketing cost and net margin were little among different channels. The producers share In the consumers' price was 35 per cent, which indicated that producer did not get a fair price. All types of traders received substantial margin for buying and selling lemon. Marketing cost were 23 to 25 per cent of retail price and net margin or profit were 40 to 42 per cent of retail price, which may be considered as higher. Marketing margin analysis showed that business of lemon was profitable for intermediaries. The results showed that channel-lV possesses the highest marketing efficiency followed by channel-II and channel-Ill. Lower producers' share to consumers' price and higher percentage of marketing cost and net margin to retail price by intermediaries indicated the poor efficiency of lemon marketing. The lowest price prevailed in June due to peak harvesting period. The price started rising from October and reached the peak level in February due to limited supply and Ramadan.

Keywords: Seedless lemon, Marketing system, Profit

Location: Dhaka and Gazipur markets, Bangladesh

Start Date: 00-00-1996

End Date: 00-00-1997

Program Area: Socio-economic and Policy

Commodity: Lemon

Objectives:

Objective of this study was to generate some basic information regarding efficient marketing channel, marketing cost and margin for seedless lemon and identify farm level price fluctuation pattern for lemon cultivation.

Methodology:

Sreemongal, the important seedless lemon growing area was purposively selected for this study. One primary market was selected from the growing area. Wholesale and retail markets were selected from Dhaka and Gazipur, which were the major consuming areas. Primary data was the main source of information for this study. Simple random sampling technique was used to select the farmers and intermediaries who were attached with lemon marketing. Data were collected by repeated visits in each farm/market personally and by interviewing them with the help of a pretested interview schedule during 1996-97. A large number of intermediaries were involved in lemon marketing. After growers, intermediaries involved in lemon marketing channel were the Faria, Bepari, Aratder, Paiker and Retailer. Total number of sample was 76, where producer seller 30, Faria 5, Bepari (Local) 10, Bepari (Dhaka) 5, Aratder (Local) 3, Aratder (Dhaka) 3, Paiker (Gazipur) 2, Retailer (Dhaka) 15 and Retailer (Gazipur) 3. In the present study concurrent margin method was used for studying price spread. The gross and net margins were computed using the formulae as under: GMi = PRi - PPi; Where, GMi = Gross margin (Tk/thousand) for ith intermediary; PRi Price received (Tk/thousand) for ith intermediary: PPi = Price paid (Tk/thousand) for ith intermediary. NMi = GMi - MCi Where, NMi = Net margin (Tk/thousand) for ith intermediary: MCi = Marketing cost incurred (Tk/thousand) for ith intermediary.

Source of Information: Bangladesh J. Prog. Sci. & Tech. 1(1): 45-50, January, 2003

Article Link (Online Journal):

Funding Source:

1.

Budget:

Total Budget (Tk.) :

Achievement/Findings:

According to the farmers' opinion, price of lemon is very low at peak harvesting period. Establishment of lemon processing unit in the extensive growing area may be one of the remedies of this problem and it will ensure fair price for the farmer. Effective price policy is another measure to ensure fair price of lemon. Farmers also reported that transport and communication are the major problem to carry lemon from garden to primary market and traders reported about high transportation cost. To overcome this problem road communication facilities should be developed and number of transportation mode like truck should be increased. Institutional credit facilities with easy terms and condition should be made locally available for both farmers and traders. It will also helpful to eliminate unnecessary middlemen like local Aratders. Farmers are left handicapped by lack of reliable price information. In many cases, they just take the prices dictated by their informal financiers. Farmers are generally price takers because they, as individuals cannot influence the supply and demand situation or are committed to their financiers.

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