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Feasibility of Rice Procurement Programme for Poor Farmers in Bangladesh

S Alam
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh

S Haque
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh

S Islam
Dhaka Bar and Bar Council Association, Dhaka, Bangladesh

A Jannat
Institute of Agribusiness and Development Studies, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh

MM Islam
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh

Abstract/ Executive Summary:

The study has been conducted to examine feasibility of rice procurement system and factors influencing farmers to sell rice at procurement centers in an area of Jamalpur district. In total, 45 sampled farmers including both participant and non-participants and 15 millers who are residing in various upazillas in Jamalpur district were interviewed. Stratified sampling technique was followed to select the respondents. From the 45 farmers, 20 farmers were participating in the procurement process. To examine the financial profitability of rice procurement system, activity budget analysis was done. To find the influencing factors those encourage farmers to attend in rice procurement programme, the Logit regression model was used. The study revealed that on an average, 52 percent and 11 percent of paddy procurement targets in Boro and Aman season respectively were achieved. On the other hand, 91 percent and 49 percent of rice procurement targets in Boro and Aman season respectively were achieved. Though cost of production was higher for marginal/small farmers, but the both gross and net return was higher for medium/large farmers. Out of 9 independent variables, four variables have been found to have significant influence on adopting rice procurement system in the study area. Although, Government Boro paddy procurement has many weaknesses, but it can be reduced by taking necessary steps in making it more efficient.

Keywords: Procurement, Performance, Rice

Location: Islampur, Melandah and Madargonj under Jamalpur district.

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Rice

Objectives:

The results of this study are expected to be helpful to the farmers, traders, millers and procurement officials as well as of significant use to the planners and policy makers.

Methodology:

The research targeted the farmers and millers considering in total, 45 sampled farmers including both participant and non-participant and 15 millers who are residing in various upazillas such as Islampur, Melandah and Madargonj under Jamalpur district. Stratified sampling technique was followed to select the respondents. From the 45 farmers interviewed, 20 farmers were participating in the procurement process. Of them, 10 were marginal/small (0.01 – 2.49 acres) and 10 were medium/large (2.5 -7.49 acres and above). Among the large farmers, 4 of them had rice husking mills. The survey schedule was developed by keeping in view the objectives of the study to collect the expected primary data from farmers. Three questionnaires; one for participating farmers, those who sold paddy to the procurement center and another for non-participating farmers, those who did not sell paddy to the procurement center and another one for millers were made. In addition to primary data, secondary data were collected from government and non-government institutions and books, publications or websites. In order to arrive at meaningful conclusion, mainly tabular and graphical methods of analysis were followed. Average, percentage and difference were the major statistical tools employed to show results in a comprehensive manner. To find the influencing factors those encourage farmers to attend in paddy/rice procurement programme, the Logit model was used. The dependent variable, either participate in procurement programme or not, have been analyzed by using a Logit model. This dependent variable is a binary variable. The variables are assigned a value of zero if farmers do not participate in procurement programme (Y=0) and a value is 1, if they participate in the programme (Y=1). Mathematically the Logistic model is written as: (Li)ⁿ = P(i)/1– Pi = β₁ ₊ β₂ X_1i + β₃ X_2i + … … … + β_k,Xki+ µi Where, L is called the Logit, the ( Pi/1– Pi) is simply the log of the odds ratio in favour of procurement programme i.e; the ratio of the probability that a respondent chooses to participate in the procurement programme to the probability that it chooses not to participate in the procurement programme. β₁ is the intercept term, and X₁, X₂, X₃ ……….X_k are the explanatory variables and the subscript i denotes the i^th observation in the sample; β₂, β₃…… β_k are the coefficients associated with each of the explanatory and to be estimated and µ_i is the stochastic error term.

Source of Information: Progressive Agriculture 28 (2): 139-147, 2017

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

However, government should be careful in removing all types of irregularities, making information available, purchasing directly from the farmers, reducing the dominance of middlemen or politicians, organizing farmers through farmers association, flexible criteria (moisture content and increasing maximum limit), appropriate timing, and so forth. A well-functioning procurement programme is very important for insuring food security of the country. So that poorest farmers of poor country can survive in agriculture.

Knowledge Management: Journal