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Import and Export Parity Analysis of Selected Vegetables and Spices in Bangladesh

M. A. RASHID
Principal Scientific Officer
Agricultural Economics Division, BARI, Gazipur

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

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

Abstract/ Executive Summary:

The study was undertaken to find out the export potentialities of selected vegetables and import substitution of selected spices in Bangladesh. Seven hundred twenty vegetables and 320 spices growers, 25 suppliers, and 25 exporters were randomly selected for the study. Net margin analysis was done on both variable and total cost basis. Domestic resource cost (DRC) analysis was also done for estimating comparative advantage of the selected vegetables and spices. The study revealed that net returns were positive for all vegetables and spices producers. However, the highest net return was estimated for brinjal producers (Tk 273799/ha) followed by bitter gourd producers (Tk 152145/ha). In the case of spices, the highest net return was received by ginger producers (Tk 231399/ha) followed by onion producers (Tk 122308/ha). Comparatively low net returns were found for okra (Tk 51830/ha) and garlic producers (Tk 99352/ha). Vegetables exporters received the highest net margin (Tk 32852/ton) from UK market which was higher than the Middle East market (Tk 22869/ton). The highest benefit cost ratio (BCR) was calculated for brinjal (1.9) followed by ash gourd (1.8). For spices, it the estimated BCR were 2.1 and 1.8 for ginger and garlic respectively.. Bangladesh had comparative advantage of producing all selected vegetables and spices as the estimates of domestic resource cost (DRC) were less than one. The value of DRC for all selected spices was less than unity implied that the production of these spices would be highly efficient for import substitution.

Keywords: Parity anaysis,Import, Export, Spices, Vegetables

Location:

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Ginger, Garlic, Onion

Objectives:

To find out the export potentialities of selected vegetables and import substitution of selected spices in Bangladesh.

Methodology:

Domestic resource cost (DRC) analysis was also done for estimating comparative advantage of the selected vegetables and spices. The vegetables and spices growing farmers, suppliers, and exporters were considered as the population for this study. Keeping in view the objectives and time constraint of the study, altogether 720 vegetables taking 40 from each vegetable and each location, and 320 spices growers taking 40 from each location, 25 suppliers, and 25 exporters were randomly selected for the present study. The study areas were purposively selected based on intensive vegetables and spices growing pockets in Bangladesh Based on the availability of data, easy road communication, and nearest to Airport, Ulokhola of Kaligonj Upazila of Gazipur district was selected for selecting vegetable traders. Again, on the basis of collection of exportable items and the presence of export oriented trading firms, Motijheel, Kakrail, Shantinagar, Khilgaon and Shambazar of Dhaka city were selected for the study

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

Article Link (Online Journal):

Funding Source:

1.

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The study revealed that net margins were positive for all vegetables and spices producers. However, the highest net return was estimated for brinjal producers followed by bitter gourd producers. In the case of spices, the highest net return was received by ginger producers followed by onion producers. Comparatively low net returns were found for okra and garlic producers. Vegetables exporters received the highest net margin from UK market which was higher than the Middle East market. The highest benefit cost ratio (BCR) was calculated for brinjal followed by ash gourd. For spices, it the estimated BCR were 2.1 and 1.8 for ginger and garlic respectively. Bangladesh had comparative advantage of producing all selected vegetables and spices as the estimates of domestic resource cost (DRC) were less than one. This is a clear indication that although not yet a major supply source, Bangladesh seemed to have a high potential for export development of horticultural crops, particularly, in vegetables and spices. The country has got some natural advantages like fertile soil, favorable climatic condition, and abundant supply of inexpensive labour force. The export of fresh vegetables is more profitable due to high value addition.

Knowledge Management: Report/Proceedings