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Maize Supply and Demand Situations in Bangladesh: Policy Implications

M. S. RAHMAN
Scientific Officer
, Agricultural Economics Division, BARI, Joydebpur, Gazipur

T. M. B. HOSSAIN
Senior Scientific Officer
, Agricultural Economics Division, BARI, Joydebpur, Gazipur

M. A. MONAYEM MIAH
Senior Scientific Officer, Agricultural Economics Division, BARI, Joydebpur, Gazipur
, Agricultural Economics Division, BARI, Joydebpur, Gazipur

Abstract/ Executive Summary:

Maize is introduced as a relatively new crop in the rice based cropping patterns of Bangladesh. But now maize is an important cash crop to the farmers. Beside this it contributes a larger share of poultry and fish feed mills as raw materials. Information regarding actual demand and supply situations of maize in Bangladesh is absent. No one can say about this. For this the present study was undertaken to quantify maize demand and supply along with its constraints towards strengthening maize subsector. Both primary and secondary data and information were used in this study. Secondary data were collected from BBS, DAE and research reports. The total area under maize cultivation is estimated to be 0.3 million hectors producing 2.2 million MT with an average yield of 7.0 t/ha during 2013. But in 1996-97 the yield of maize was only 2.48 ton/ha. Current maize yield in Bangladesh is unpleasant. Potential maize yield is assumed as 12.61 ton/ha where yield of winter and summer maize in 2013-14 is 7.14 and 5.98 ton/ha respectively. A large part of maize demand in poultry and fish feed mills are fulfilled through import especially from India. During the period July, 14- April, 15 total no. of L/C opened for maize import was 124 of which settled was 173 for importing 113683.5 ton maize. Storing cost of maize is Tk 14/ kg per year. Nationally 60% of imported maize are using for broiler feed production and the rest are using for fish feed production.

Keywords: Quantify, Maize,Supply, Demand

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End Date:

Program Area: Socio-economic and Policy

Commodity: Maize

Objectives:

To quantify maize demand and supply along with its constraints towards strengthening maize subsector.

Methodology:

Maize based agro industrials and Import associations were the samples for this study. Different conversation have done with officers of different maize based feed industry to know the real situation of maize use in industry level. Vector error correction model with Johansen approach (VECM) are using in supply response modeling with software E-Views 8.1 software. Demand approach and trend approach are also using to quantify demand of maize in Bangladesh

Source of Information: Annual Research Report,AGRICULTURAL ECONOMICS DIVISION, Bangladesh Agricultural Research Institute Joydebpur, Gazipur-1701, August, 2015

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Achievement/Findings:

The area under maize is increasing very rapidly due to high demand in industry level. Maize sector can contribute a lot in the countries struggle towards food security and food self-sufficiency. Supply of maize seed is done through private and publicly. Maize is using in various forms for consumption purposes. With human consumption maize is using as a poultry and fish feed and fodder for livestock. A significant portion of maize demand are met up through import which is mostly done from the neighboring country India. So there is enough scope to increase maize production in Bangladesh.

Knowledge Management: Report/Proceedings