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Marketing System of Maize in Gaibandha District of Bangladesh

A. K. M. G. Kausar
Dept. of Agribusiness Management, EXIM Bank Agricultural University Bangladesh , Chapai Nawabganj

M. J. Alam
Dept. of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh

M. A. Awal
Planning and Evaluation Division, Bangladesh Agricultural Research Council, Farmgate, Dhaka

Abstract/ Executive Summary:

The present study examined the marketing system of maize in Gaibandha district of Bangladesh. In the study area, farmer, Faria, 1 wholesaler, Aratdar 2 and feed mill were the market participants. Marketing of maize started from farmers and reached to the feed mills through different channels. Farmers did not take part in processing activities. Van 3, Votvoti 4, pick-up, truck and by-cycle were the common modes of transportation. Market information was collected through mobile phone, personal visit to the market, discussion with fellow farmers and traders. Price of maize was determined through the supply and demand situation of the market. The marketing cost per 100 kg maize for Farias, wholesalers and Aratdars were Tk. 61.48, Tk. 122.75, and Tk. 96.80, respectively. Cost of marketing for wholesalers was the highest among all intermediaries and the lowest for Farias. The marketing cost incurred by all intermediaries was Tk. 281.03 per 100 kg maize. Transportation cost was the highest (46.42%) and information search cost was the lowest (1.35%) of the total marketing cost. Knowledge about marketing system is needed for farmers and other market participants to do their business better.

Keywords: Market participants, Marketing channel, Marketing functions, Marketing cost and Marketing margin

Location: Gaibandha district of Bangladesh

Start Date: 00-08-2012

End Date: 00-08-2012

Program Area: Socio-economic and Policy

Commodity: Maize

Objectives:

To identify existing market participants, marketing channels, marketing cost and marketing margin of maize in some selected areas of Gaibandha district of Bangladesh which will help producers and other market participants to understand the marketing system of maize properly to get their reasonable margin.

Methodology:

Two upazila’s viz. Sughatta and Fulchhari of Gaibandha district were selected for this study. This selection was on the basis of higher concentration of production and marketing of maize in that area. In total, 13 farmers (7 from Sughatta and 6 from Fulchhari upazila), 10 Farias (5 from Sughatta and 5 from Fulchhari upazila), 15 wholesalers (8 from Sughatta and 7 from Fulchhari upazila) and 12 Aratdars (6 from Sughatta and 6 from Fulchhari upazila), hence , a total of 50 intermediaries were selected through purposive random sampling method. The sampled respondents were directly interviewed through a structured interview schedule for collecting data regarding production, marketing cost and margin etc. The survey was done in August, 2012. Collected data were cleaned, coded, analyzed for results and interpreted for discussion .

Source of Information: Journal of Bioscience and Agriculture Research, Vol. 05, Issue 01(2015): 01-0 9, eISSN: 2312-7945.

Article Link (Online Journal): http://www.journalbinet.com/uploads/2/1/0/0/21005390/marketing_system_of_maize_in_gaibandha_district_of_bangladesh.pdf

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The study found that farmers sold their maize to Farias, wholesalers and Aratdars. They used Van and by-cycle in those selling activities whereas intermediaries used Van, pick up , Votvoti, boat and truck. Farmers and intermediaries got market information through market visit, discussion with fellow farmers and traders and mobile phone. Marketing cost was highest for wholesalers and lowest for Farias. Similar results were found in case of marketing margin. The study identified marketing problems of farmers and intermediaries in the area and recommended some solutions. Farmers incurred high transportation cost due to poor road and transport facilities which necessitates development of improved road and transport. They did not get expected profit due to dominancy of intermediaries and unlawful market toll which demand elimination of market toll and proper monitoring of intermediaries. Lack of credit facilities were reported by both farmers and intermediaries which necessitates adequate credit facilities from formal and informal institutions in the area. Sufficient number of procurement centers or improved Godowns can be established to solve storage problem. Local DAM (Department of Agricultural Marketing) office, MoA (Ministry of Agriculture) office as well as other concerned government and non - government organizations may disseminate market information to keep farmers update about daily price and existing market situation. Recommended solutions will help to construct maize marketing system of Gaibandha district more effective and fruitful if these are in action.

Knowledge Management: Journal