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Contextual Estimation of Marketable and Marketed Surplus of Selected Seasonal Fruits: a Study Based on Chittagong Hill Tracts (cht) of Bangladesh

Md Jahurul Islam
Research Analyst, Bangladesh Institute of Development Studies (BIDS), E17, Sher-e-Bangla Nagar, Agargaon, Dhaka-1207, Bangladesh

Abstract/ Executive Summary:

This study is an attempt to assess the marketable and marketed surplus of selected seasonal fruits (mango, jackfruit, and litchi) in the Chittagong hill tracts of Bangladesh. Primary data were used for the study. In total, 459 sample fruit growers were selected purposively for the study. Proportionate random sampling was followed in the case of selecting the sampling unit. It was apparent to interpret from the survey that in the case of mango production, 78% of fruit growers planted Rangui variety whereas Amrapali was ranked second highest (36%) including the eight groups of Bandarban and Rangamati of the survey. Among the three mentioned varieties of litchi, the BARI litchi 2 variety was more prevalent (21%) than the other varieties. Also, 69% of respondents grew jackfruit whereas the average production was more in Rangamati than in the Bandarban area. It is more apparent for all three of the seasonal fruits that, the marketable surplus was found to be higher than the net marketed surplus. That means farmer retains more for their consumption and other uses than the actual amount marketed. Running factor analysis, several cases were found that affect sustainable market linkage which was categorized into four factors like marketing, economic, social, and environmental factor and the KMO value was found to be 0.527, generally, indicate that a factor analysis might be useful with this data. This study recommends increasing the marketed surplus with the increase of marketable surplus so that it can ultimately help fruit growers to link themselves with the market and increase their revenue.

Keywords: Agriculture, Food Security, Chittagong hill tracts, Fruit production, Marketable surplus, Marketed Surplus.

Location: Bangladesh Institute of Development Studies (BIDS), E17, Sher-e-Bangla Nagar, Agargaon, Dhaka-1207, Bangladesh

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Fruit

Objectives:

Specific objectives: i. To estimate the production, marketable and marketed surplus of seasonal fruits (mango, litchi, and jackfruit) in the study area. ii. To assess the factors (social, cultural, economic, environmental and institutional) that are responsible for sustainable market linkage with the hill farmers.

Methodology:

The methodology of the present study is related to the selection of the study area, selection of the farmers, data source, the period of data collection, data collection tool, data collection methods, processing of data and analytical techniques adopted. For the present study, three types of seasonal fruits namely mango, jackfruit and litchi were selected. The study was conducted to assess the marketable and marketed surplus of these selected seasonal fruits for linking hill farmers with the market. Necessary primary data were collected from the eight FGO (Fruits Growers' Organization) among the twenty listed farmers association formed by the help of the project in different areas of Bandarban, Rangamati, and Khagrachari. The following steps were involved in the methodology used for conducting the research work: 3.1. Selection of Study Area As the selection of the study area is an important step and it largely depends upon the objectives of the study. On the basis of the high concentration of fruit production and cultivation, Bandarban and Rangamati districts were considered for the study purpose. 3.2. Selection of Sample and Sampling Techniques The population for this research is defined as those persons who are involved in the production system of seasonal fruits. In total, 459 samples (351 from Bandarban and 108 from Rangamati ) were collected from eight fruit growers? organizations. Proportionate random sampling techniques were followed for selecting the sample size in each location. Focus Group Discussion (FGD), key informant interviews and household survey through semistructured questionnaire were used for data collection. 3.3. Sources and Period of Data Collection Primary data were collected through personal interviews with the respondents using an interview schedule. In this study, no secondary data were also collected. Data were collected by the researcher himself during the period from the fruit growers of the Bandarban and Rangamati region. Primary data were collected from Bandarban and Rangamati district from April 2016 to August 2016. 3.4. Collection of Data During data collection, the objectives of the study were clearly explained to the respondents so that they could understand and respond freely. After completion of each interview, each schedule was checked and verified to make sure that the answer to each item had been properly recorded. Fruit growers were selected from the two selected hill districts. Growers were selected from a different area of the Bandarban and Rangamati district. 3.5. Computation of Marketable and Marketed Surplus The marketable surplus was considered as the total production minus the portion used for total needs and requirements. The needs and requirements of farmers equal the consumption at home, plus distribution, plus seed and plus non-human feed usages. A marketable surplus is derived from the formula: MS = P – R Where MS is the Marketable surplus P is total production R is the total requirement at the farm level. The total produce sold by the farm household is termed as the marketed surplus i.e. the surplus of the product which is sold in the market irrespective of the actual requirement of the farm household. The marketed surplus has been calculated by subtracting buyback from the total sale (gross sale). Here, the following formula has been used to estimate marketed surplus: M = G – B Where, M = Marketed Surplus G = Gross Sales B = Buy-backs 3.6. The Relationship between Marketed Surplus and Marketable Surplus The marketed surplus is more than the marketable surplus when the farmer retains a smaller quantity of the crop than the actual requirements for family and farm needs. It is especially true for small and marginal farmers whose need for cash is immediate (Distress Sales). In the case of large farmers, having better retention capacity or in case of fall in relative price to a competing crop leading to substitution there is the retention of the crop and marketed surplus may be less than the marketable surplus. In the case of perishable commodities and for the average farmer, the marketed surplus is equal to the marketable surplus. 3.7. Data Analysis and Analytical Techniques Data obtained from questionnaires and interviews were coded where appropriate, entered into a database system using Microsoft EXCEL, and analysis was done using SPSS Statistical Software. The average and percentage ratio was estimated using the EXCEL sheet. Descriptive statistics (percentage, mean, range, standard deviation, etc.) were used to describe the variables.

Source of Information: International Journal of Sustainable Agricultural Research 2019 Vol. 6, No. 1, pp. 21-32 ISSN(e): 2312-6477 ISSN(p): 2313-0393

Article Link (Online Journal): DOI: 10.18488/journal.70.2019.61.21.32

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The frequent and common variety for mango that was sent to different market was the Rangui variety as the productions of other varieties was not more to supply. It was also observed that other fruits like jackfruit and litchi were sold more in the local market rather than supplying it to the distant market. It is more apparent for all three of the seasonal fruits that, the marketable surplus was found to be higher than the net marketed surplus. That means farmer retains more for their consumption and other uses than the actual amount marketed. Analyzing the factors that are affecting sustainable market linkage, it was found that the results of factor analysis is useful and have good extraction value.

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