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Economics of Maize Grain Storage at Household Level in Chuadanga District of Bangladesh

M. E. Baksh
Formerly with the International Maize and Wheat Improvement Center (CIMMYT),

F. Rossi
Formerly with the International Maize and Wheat Improvement Center (CIMMYT)

M. A. Momin
Formerly with the International Maize and Wheat Improvement Center (CIMMYT),

P. Hajong
Scientific Officer (Ag. Economics),
Bangladesh Agricultural Research Institute (BARI), Regional Agric. Research Station, Jessore

T. P. Tiwari
International Maize and Wheat Improvement Center (CIMMYT), Bangladesh.

Abstract/ Executive Summary:

There is a common perception among farmers and concerned professionals that maize grain cannot be stored like paddy or other cereals in conventional rural storage devices. As such, farmers generally sell their produce at harvest for any price offered to avoid quality deterioration and losing total return after harvest, which leads to lower profitability. To counter this situation, in the recent years, some progressive farmers at Chuadanga district (one of the concentrated maize growing area of Bangladesh) have been storing their maize grain within their household by using traditional bamboo granaries (Golas in the Bengali language) with the aim to capture higher future prices, while these Golas are traditionally used for storing paddy. Through the Cereal Systems Initiative for South Asia in Bangladesh (CSISA-BD) project, the International Maize and Wheat Improvement Center (CIMMYT) also helps further more to disseminate this technologies in the Chuadanga area. Given the uptake of this profit- increasing strategy by farmers, it is essential to document and evaluate the knowledge learned in order to inform scale-out efforts designed to reach farmers in other areas. A survey was conducted to assess maize grain storage systems in use at the household level in Chuadanga District farmers, and to estimate the overall profitability of storing maize grain. The survey results showed that approximately 80% of the total maize grain produced in 2014 (5.93 t/ha, on average) by sampled farmers was stored; most households employed Gola (62%) and/or jute sacks (55%), among other options. Golas were their first preference, followed by storage systems that pair polythene bags with (respectively) jute sacks and plastic bags, and then several other options. On average, farmers stored their maize grain 25.6 weeks (2014), 21 weeks (2013), and 20.9 weeks (2012) while realizing a price benefit of BDT 2.16/kg, BDT 4.72/kg, and BDT 5.35/kg in the respective years. Despite the fact that average storage costs and average quantities stored both varied by less than 7% between 2012 and 2014, the profit per unit (100 kg) and profit per household was significantly less in 2014 (BDT 10,161) than in 2013 (BDT 24,445) and 2012 (BDT 30,255), due to the much lower price differential obtained from maize grain storage in 2014. Examination of the total unit cost of storage reveals that the Golas were the most profitable storage system employed by the farmers and its profits helps farmers to improve their livelihood. Proper dissemination of these practices (storing and Gola) could be helpful for the farmers at the intensive maize growing area. Limitation of drying space and higher labour cost were the two major problems faced by the farmers, introducing quick-drying devices (flatbed dryers) can solve both the problems. It can be established either by local service providers, or farmers organizing themselves for collective ownership of such equipment.

Keywords: Bangladesh, Cost analysis, Grain storage, Gola, Granary, Maize grain, Profitability.

Location: Chuadaga Sadar and Alamdanga upazilas of Chuadanga District

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Maize

Objectives:

The following specific objectives.
a.   to identify and catalog the common maize storage systems in use at the household level,
b.   to performing a cost analysis and estimating the profitability of maize grain stored for each type of storage device and utilization of increased income from maize grain storage for   house    hold welfare,
c.   to document the problems that farmers still encounter with respect to maize grain storage at the household level, and
d.   to suggest some recommendation to overcome the problems and scale out the locally made maize grain storage device for the welfare of maize growers in other maize growing areas.

Methodology:

Data for the present study were gathered from both primary and secondary sources. A sample frame was developed that consisted of 153 maize grain-storing households from 13 villages within 7 unions (a political administrative unit under upazila) under the Chuadaga Sadar and Alamdanga upazilas of Chuadanga District. Due to the limited numbers of farmers engaging in this activity, these villages were purposively selected considering the spatial concentration of households storing maize grain and/or their affiliation with project activities. As, farmers were categorised into different groups by storage device; a total of 109 households were randomly selected from these groups. Focus Group Discussions (FGD) was also conducted to verify the collected quantitative data.

Method of data collection and period of study
Primary data were collected from selected households in Chuadanga District of western Bangladesh (approximately 160 km west of Dhaka) during September 2014; a revisit was done in January 2015 to collect missing data, especially price data from farmers that had not yet sold any grain. Data collection was conducted by the principal investigator (lead author) and a collaborator from the Bangladesh Agricultural Research Institute (BARI). The household-level survey was based on a 3-page questionnaire comprising 40 questions; each interview lasted an average of 70-80 minutes. Two FGDs were conducted using a list of 20 structured questions; on average, each FGD lasted approximately 90 minutes and included 8-9 participants. Secondary data were also collected from different published sources, such as the Bangladesh Bureau of Statistics (BBS), research reports, and project reports in order to compare against the primary data and to enable a more comprehensive understanding of the overall situation.

Analytical techniques
The collected quantitative data were compiled; corrected, analyzed and descriptive statistical data are presented in tabular form and via graphs. A simple statistical regression model was also employed to analyse the data, as well. Finally, the cost analysis with regard to maize grain storage considering cost of the storage device, cost of grain drying and winnowing, the cost of pest protection measures used, etc. These costs were calculated for each individual household and then averaged on a categorical (device) basis. The returns from storing maize were calculated by considering the price benefit (differences in price between beginning time and grain sales time) and quantity stored. The profitability of maize grain storage was also estimated by calculating the gross margin (i.e. returns over variable costs).

Source of Information: Bangladesh J. Agril. Res. 42(3): 549-561, September 2017 ISSN 0258-7122 (Print), 2408-8293 (Online)

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Considering the total cost of storage, Golas are the most profitable storage system, followed closely by pucca rooms. Plastic/poly bags remain in the third-ranked position, although they are quite competitive with Golas and pucca rooms. The advantage of Golas resides in the fact that many farmers already own these traditional devices within which they store rice—thus it is simply a matter of awareness (perhaps a few small modifications, as well) that they can also be used to successfully stored maize. Storing maize grain in HH level shows very good income generating potentials; farmers can earn a good amount of profit without investing much capital. They felt wealthy with their income flow and improving their livelihood by using the profit. The scarcity of open space for efficient drying of maize grain, more labour and time required for drying and winnowing were the main problems followed by insect infestation. Liquidity constraints were also problems to smaller farmers to continue storing longer period.

Knowledge Management: Journal