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Financial Profitability of Improved Wheat Seed Storage at Household Level in Some Selected Areas of Bangladesh

M. A. Monayem Miah
Principal Scientific Officer
Planning And Evaluation Wing, Bangladesh Agricultural Research Institute (BARI), Gazipur

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

M. E. Baksh
Consultants
CIMMYT Bangladesh, Dhaka

F. J. Rossi
Consultants
CIMMYT Bangladesh, Dhaka

T. P. Tiwari
Consultants
CIMMYT Bangladesh, Dhaka

Abstract/ Executive Summary:

Small and marginal farmers have little access to improved seed from institutional sources and are thus largely excluded from the benefits of new varieties. The production and storage of improved varieties seeds at the household (HH) level can overcome this problem. The study assessed the wheat seed storage systems used at HH level, with a particular emphasis on how the farmers are financially benefited by doing the seed storage business. The study analyzed data collected at random from Cereal Systems Initiative for South Asia in Bangladesh (CSISA-BD) project supported 210 farmers spread over three wheat growing Hubs namely Mymensingh, Faridpur and Rangpur. The study revealed that wheat growing farmers used different types of storage containers and showed the highest level of preference (score 7.2) on plastic/metal drum lining with polythene bag due to lower cost of storage, longevity, and seed quality maintenance. Wheat farmers retained on an average 95.7 kg of improved seed at household level. Majority of the retained seeds at HH level (64%) are being marketed and sold to neighbouring farmers, local markets, and dealers. Wheat seed storage at household level was a profitable business to most of the respondent farmers. They earned a reasonable net income (Tk.420-Tk.1471) from seed storage. The farmers who stored seed in plastic sac+poly bag received the highest net income (Tk.1471) due to less storage cost, and higher seed price. Respondent farmers did not face any critical problem during seed storage.

Keywords: Wheat, Seed storage, Storage system, Protection measure, Profitability.

Location: Mymensingh, Faridpur and Rangpur.

Start Date: 00-02-2015

End Date: 00-04-2015

Program Area: Socio-economic and Policy

Commodity: Wheat

Objectives:

1.   To identify and delineate the prevailing systems used in storing wheat seed at the household level in the study areas.
2.   To estimate the financial profitability of wheat seed storage at the household level for different storage devices.
3.   To explore the problems and prospects encountered with respect to wheat seed storage at the household level and provide some policy recommendations.

Methodology:

Method of data collection and period of study: Data for the present study were gathered from both primary and secondary sources. Primary data were collected from selected farmers with the aid of a pre-tested interview schedule during February-April, 2015. CSISA-BD project personnel in respective district assisted researchers and enumerators in collecting the required primary data. Secondary data were collected from different published sources, such as Bangladesh Bureau of Statistics (BBS), journal articles, and internet services.
Sampling procedure and sample size: The improved wheat seed storage and distribution activities of the CSISA-BD project were launched in the three hubs namely Mymensingh, Faridpur and Rangpur. Therefore, the above mentioned hubs were purposively selected for this study. Secondly, Trisal, Mymensingh Sadar, and Iswargonj Upazilas under Mymensingh hub, Nagorkanda, Kashiani, and Faridpur Sadar Upazilas under Faridpur hub, and Pirgonj, Nilphamari Sadar, Lalmonirhat Sadar, and Rajarhat Upazila under Rangpur hub were also purposively selected for this study. Before selecting sample respondents, a complete list of improved wheat seed storing farmers was prepared with the help of CSISA-BD project personnel working under respective hubs. Finally, a total of 210 small and marginal (having land size 0.50-2.49 acres) project supported wheat farmers2 taking 70 farmers from each hub were randomly selected from the list for interview.
Analytical technique: The collected data were edited and tabulated for analysis. Descriptive statistics were mostly used in analysing collected data and information. The cost of storage included the annual cost of container and protection measures. Due to very small number of samples, protection cost was not considered to calculate net income from storage. The annual cost of a container was calculated by estimating depreciation cost applying straight-line method for one year. In this study, the salvage value of storage container was reported to be zero. Again, the gross income of storage was estimated by multiplying the quantity stored (kg/farm) with increased price (Tk/kg) of seed due to storage. Increased price is the difference between two prices that prevailed during seed selling and seed storing.

Source of Information: Bangladesh J. Agril. Res. 42(2): 289-299, June 2017 ISSN 0258-7122 (Print), 2408-8293 (Online)

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The study assessed the wheat seed storage systems used at household level, with a particular emphasis on how the farmers are financially benefited by doing the seed storage business. On average, wheat production was about 900kg/HH; and out of the three study areas trend in production was better in Faridpur area probably due to better soil fertility. The bulk of the total outputs at farm level (82%) are being marketed. In the case of stored seed, nearly 64% are often sold out by the households. The wheat farmers in the study areas use nine types of storage containers and show the highest level of preference on plastic/metal drum and plastic/metal drum along with poly bags due to cost effectiveness and better quality seed. They sell most of their seeds to neighbouring farmers, local markets, and dealers. Wheat seed storage at household level is a profitable business to most of the sample farmers. They can earn a reasonable net income (Tk.1127-Tk.1194/HH) from seed storage. The farmers who stored seed in plastic/metal drum receive the highest net income due to higher storage capacity, less storage cost, and higher seed price. Respondent farmers did not face any critical problem during seed storage.

Knowledge Management: Journal