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Existing Marketing System and Its Opportunities of Groundnut Production in Char Lands of Bangladesh

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

Tanvir M. B. Hossain
Senior Scientific Officer
Agricultural Economics Division, BARI, Joydebpur, Gazipur

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

Q. M. S. Islam
Principal Scientific Officer
Agricultural Economics Division, BARI, Joydebpur, Gazipur

M. S. Hoq1, Tanvir M. B. Hossain2, M. A. Matin3and Q. M. S. Islam4
1Scientific Officer, 2Senior Scientific Officer, & 3&4Principal Scientific Officer, Agricultural Eco

Abstract/ Executive Summary:

The study was undertaken to examine the input use pattern, relative profitability, marketing system, marketing cost and margin, production and marketing problems of rabi season groundnut in char lands of Faridpur, Jamalpur, and Kishoreganj districts of Bangladesh. The sample size of the study was 225 including 90 groundnut farmers and 135 traders. Highest (56%) groundnut farmers cultivated Dhaka-1 variety and only 23% farmers cultivated BARI chinabadam-8. The study revealed that, per hectare production cost of groundnut was Tk.61,547, net return was Tk.42,033 and BCR was 1.68. The result of partial budgeting analysis showed that if farmers cultivate groundnut instead of its competitive crops like sesame and wheat, they will get Tk. 24,445 and Tk.21,990 as an extra profit. On the other hand, the net change of benefit of groundnut cultivation with potato is negative which indicates that groundnut cultivation is not profitable in kishoreganj district. Major five marketing chain were identified on the basis of product flow in the study areas. The average estimated per quintal marketing costs incurred by different actors were Tk.102 for Faria, Tk.357 for Bepari, Tk.55 for Arathdar, Tk.112 for Paiker, Tk.128 for Retailer and Tk.1388 for Stockiest per quintal. Per quintal net marketing margin was Tk.231 for faria, Tk.310 for Bepari, Tk.59 for Arathdar, Tk.1212 for Stockiest, Tk.225 for Paiker and Tk.306 for Retailer. The major problems of groundnut production were lack of irrigation facilities (34%), low rate of germination (31%), and lack of cultivable land (29%). Major marketing problems reported by the intermediaries were lack of cash capital (82%), lack of storage facilities (55%) etc. Arrangement of institutional credit with low interest rate (80%), Collateral free credit (45%), and arrangement of storage facilities (72%) were the trader’s opinion to minimize the marketing problems.

Keywords: Ground nut, Marketing, Profitability and opportunities

Location: Faridpur, Jamalpur, and Kishoreganj

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Ground nut

Objectives:

To examine the input use pattern, relative profitability, marketing system, marketing cost and margin, production and marketing problems of rabi season groundnut in char lands of Faridpur, Jamalpur, and Kishoreganj districts of Bangladesh.

Methodology:

Sampling procedure

A multi-stage stratified simple random sampling technique was followed for the selection of district, upazila, block and market for the collection of data. Then the populations of block and market were grouped into different strata like; Farmer, Faria, Bepari etc. and the simple random sampling technique was used for drawing the desired sample from each strata. Rabi season groundnut was considered for the study.

Study Area: Three districts Faridpur, Jamalpur and Kisoreganj were selected for the Rabi groundnut production and marketing survey. Two upazila from each district were selected on the basis of where char lands are available for the Rabi groundnut production. Markets were selected where the maximum product are marketed from the production area.

Sample size: A total of 225 sample taking 75 from each area were interviewed for the present study. Among the 75 samples, 30 farmers and 45 traders were selected from each district. The sample distribution of each district was 30 farmers and 45 traders (10 Faria+8 Bepari+5 Arathdar+8 Paiker+10 Retailer +4 Stockist). In selecting the types of traders a list of intermediaries were prepared with the help of different types of intermediaries or market authorities existing in the market. Then the required amounts of traders were proportionally selected from the list.

Source of Information: Annual Research Report, 2013-2014, Agricultural Economics Division, BARI, Joydebpur, Gazipur

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Groundnut was profitable crop in char lands because it requires fewer amounts of fertilizer, pesticides and irrigation compared to other crops. The study revealed that per hectare groundnut production was profitable than its competitive crops wheat and sesame. It has also some opportunities for groundnut production in char lands such as sandy soil, less water and fertilizer requirement, high yield compared to input uses, low labour requirement etc are favorable to farmers for groundnut cultivation. Most of the farmers used local or traditional variety for groundnut cultivation in char lands. Maximum production of groundnut was consumed and marketed locally and rest of the production was kept by farmers as a seed. The study also identified five mojor marketing chain of groundnut marketing. The actors of the groundnut marketing chain were Faria, Bepari, Arathdar, Stockiest, Paiker and Retailer. A good amount of marketing margin was received by the actors at different stages of marketing chain. The study also showed the marketing margin distribution among the actors of the marketing chain and the efficiency of the marketing chain. The longer the marketing chain the lower the producer share as well as marketing efficiency. The study also identified some production and marketing problems of groundnut cultivation and also suggested some policy options which are recommendation of the study.

Knowledge Management: Report/Proceedings