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Opportunities of Groundnut Production and Marketing in Char Lands of Bangladesh

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

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

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

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

Abstract/ Executive Summary:

The study was undertaken to examine the adoption, relative profitability, marketing system, production and marketing problems of rabi season groundnut in the char lands of Faridpur, Jamalpur, and Kishoreganj districts of Bangladesh during 2013-2014. The sample size of the study was 225 including 90 groundnut farmers and 135 traders. The study revealed that the highest (56%) percent of groundnut farmers cultivated Dhaka-1 variety and only 23% of all farmers cultivated BARI chinabadam-8.The per hectare production cost of groundnut was Tk 61,547, net return was Tk.42,033 and BCR was 1.68. The partial budgeting analysis showed that if the farmers cultivated groundnut instead of its competitive crops, they would receive Tk. 24,445 additional to sesame and Tk.21,990 additional to wheat cultivation. The average estimated marketing costs was highest (Tk.1388/quintal) for Stockist and lowest (Tk.55/quintal) for Arathdar. Net marketing margin was also highest (Tk.1212/quintal) for Stockist and lowest (Tk.59/quintal) for Arathdar. Marketing chain-v was the most efficient than other five chains because it has single involvement of intermediary. The major problems identified by farmers were lack of irrigation facilities (34%), low rate of seed germination (31%), and lack of cultivable land (29%). Major marketing problems were lack of cash capital (82%), and 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 of groundnut

Keywords: Ground nut production, Marketing, Char land

Location: Faridpur, Jamalpur, and Kishoreganj

Start Date: 00-00-2013

End Date: 00-00-2014

Program Area: Socio-economic and Policy

Commodity: Ground nut

Objectives:

1.To explore the adoption, relative profitability and opportunities of groundnut production in char lands;
2. To examine the existing marketing system of groundnut in char lands along with the marketing cost and margin

3. To study marketing efficiency, identify the major production and marketing problems and
4. To derive some policy recommendation on groundnut.

Methodology:

A multi-stage simple random sampling technique was followed for the selection of district, upazila, block and market for the collection of data. 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. The study was conducted during the period in 2013-14. Data were collected from both primary and secondary sources.Study area: Three districts Faridpur, Jamalpur and Kisoreganj were selected for the Rabi groundnut production and marketing survey. Two upazilas 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 were 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: 15th National Conference and Seminar “Transformation of Agricultural Sector in Bangladesh in 21st Century” of the Bangladesh Agricultural Economists Association held on 22-23 January, 2016 at the Bangladesh Agricultural Research Council (BARC), Farmgate, Dhaka. Bangladesh.

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

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 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 major 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 as well as 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