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Business Prospects and Challenges in Haor Areas of Bangladesh

Md. Taj Uddin
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

Najmul Hossain
Friedrich Naumann Foundation (FNF), Dhaka

Aurup Ratan Dhar
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

Abstract/ Executive Summary:

Bangladesh has experienced promising improvements in its overall economic, social and health conditions, but the progress is not up to the mark in Haor areas. Improvements in this sector can lead to increase in production, employment and poverty reduction. Aside from increased productivity, farmers need a supporting business environment where availability and access to agricultural inputs are ensured, fair returns to investment are secured. Keeping these issues in mind, the study was conducted to measure productivity, profitability, and price variation of inputs and outputs; and to identify business challenges and suggest policy options for overcoming constraints and exploring intervention strategies in Haor regions. Primary data were collected from Mohongonj upazila of Netrakona district and Mithamoin upazila of Kishoregonj district. A total of 120 farmers and 24 service providers were interviewed for data collection. Face-to-face interview, focus group discussions (FGD) and key informant interviews (KII) were conducted to collect primary data. For analyzing the data, descriptive statistics and accounting method were used to achieve the objectives. The study revealed that average farm size of the respondents was 0.73 hectare. Most of the farmers (39.2%) followed the farming system of crop-livestock-fish catching (C-L-F). Fish catching was the most profitable enterprise with BCR 2.12. The differences in productivity of crop farming and poultry rearing between Haor areas and main land were found statistically significant. Remarkable differences in quantity and price of inputs and outputs were seen in Haor areas and main land. Favorable farm environment and proper utilization of agricultural resources were identified as major strength and opportunity in the study areas. Formation of agribusiness clusters involving input suppliers, credit/financial organizations and different support service providers will result in more income, better nutrition and improved livelihood of the Haor people. The study concludes that the business environment in the Haor areas has a high potential to be exposed with the integration of available local agricultural resources. Government price support and improved market management are recommended for accessibility and appropriate use of agricultural inputs, and for managing local productive resources in use of business prospects in the study areas.

Keywords: Haor, Productivity, Profitability, Business prospects, Challenges

Location: Mohongonj Upazila of Netrakona district and Mithamoin Upazila of Kishoregonj district

Start Date:

End Date:

Program Area: Socio-economic and Policy

Non-commodity: Income generation

Objectives:

The overall goal of the research was to address business prospects and challenges in Haor regions. The specific objectives of the study were: i) to measure productivity, profitability, and price variation of inputs and outputs; and ii) to identify business challenges and suggest policy options for overcoming constraints and exploring intervention strategies in Haor regions.

Methodology:

Selection of the study area Primary data were collected from Mohongonj Upazila of Netrakona district and Mithamoin Upazila of Kishoregonj district. Four (04) villages of two (02) unions of each upazila (Gaglajore and Suair unions of Mohongonj upazila; and Mithamoin and Ghagra unions of Mithamoin Upazila) were taken under consideration. Thus a total of eight (08) villages were selected as study areas. These regions were selected for the study because they are very close to the Haor water bodies, dependent on rich natural resources, bounty of diversified farming systems and have favourable agribusiness environment. Sampling technique and sample size Total 120 farmers were interviewed following stratified random sampling based on farm size. Fifteen sample respondents of each village were interviewed for collecting necessary data and information. Also, 12 service providers from each Upazila, i.e., a total of 24 service providers were interviewed for data collection. Collection of data and information Field survey method through face-to-face interview using pre-tested structured questionnaire was used to collect primary data from the sample farmers. Moreover, a total of 8 focus group discussions (FGD) and 4 key informant interviews (KII) were conducted in each district with different stakeholders like, representatives of supporting institutions i.e., DAE, DLO, DoF officials, NGOs, input dealers, Upazila food office, rice millers and other market actors. The questionnaires were constructed and pre-tested for necessary modifications before starting the data collection. Besides, secondary information having relevance with this study were also used. Analytical techniques After collecting necessary data, those were classified, edited and coded. For analyzing the data, descriptive statistics (i.e., sum, average, percentages, ratios, t-test, etc.) and accounting method (i.e., profitability analysis) were used to achieve the objectives. Profitability of crop production per hectare, from the view point of individual farmers was measured in terms of gross return (GR = P × Q), gross margin (GM = GR – TVC), net return (NR = GR – TC) and benefit cost ratio (BCR = GR ÷ TC) (Dillon and Hardaker, 1993).
Where, GR = Gross return (Tk.); GM = Gross margin (Tk.); NR = Net return (Tk.); BCR = Benefit cost ratio; P = Sales price of the product (Tk.); Q = Yield per hectare (unit); TVC = Total variable cost; TFC = Total fixed cost (Tk.); and TC = Total cost (Tk.).
Moreover, SWOT analysis (Gürel and Tat, 2017) was done to evaluate the strengths, weaknesses, opportunities and threats to identify the internal and external factors that are favorable and unfavorable to achieve the objectives of this research. Finally, recommendations were provided in the form of recommendation matrix (Dhar, 2016) to point out the facts of intervention exploring the business opportunities in Haor areas.

Source of Information: J Bangladesh Agril Univ 17(1): 65–72, 2019

Article Link (Online Journal): https://doi.org/10.3329/jbau.v17i1.40665

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The study concludes that the business environment in the Haor areas has a high potential to be exposed with the integration of available local agricultural resources. This can contribute to the improvement of livelihood of the people living in Haor areas. The people of the study areas were dependent on fish catching along with other activities in the Haors which was supported by crop production, livestock rearing and poultry farming. Involvement with these agricultural enterprises was comparatively profitable and productive in Haor areas compared to the main land. Considering the findings, several issues have been arisen to think which are: government price support and improved market management are needed for availability and applicable use of agricultural inputs, and support from GOs and NGOs for managing local productive resources in use of business prospects in the study areas. Moreover, organization of seminars and workshops are necessary to build awareness of the respondents for overcoming the constraints.

Knowledge Management: Journal