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Research Detail

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Abdul Quddus
Department of Agricultural Statistics, Faculty of Agricultural Economics & Rural Sociology, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh

Jaclyn D. Kropp*
Department of Food and Resource Economics, University of Florida, Gainesville, FL 32611, USA

This study analyzes the constraints affecting agricultural production in the lagging regions of Bangladesh. These regions are lagging in agricultural productivity due to natural phenomena and past government policies. Ten lagging regions, covering eight administrative divisions, were selected for analysis based on crop productivity indicators, percentage of the population in extreme poverty, and agroecological zones. Data were collected from 1257 farm holders using a structured questionnaire. Respondents were mostly older, illiterate males with low levels of education. Production constraints included inadequate supplies of fertilizer and pesticides in local markets. Labor accounted for the highest proportion of agriculture expenditures (51.3%), followed by equipment rental (11.8%), then pesticides (9.3%), and irrigation (8.2%). Only 35.4% of respondents availed credit to purchase agricultural inputs; among them, 85.4% borrowed from formal sources. Lack of proper irrigation facilities, production machinery, and access to institutional credit, difficulties procuring inputs and storing products, and negative impacts of climate was identified as the major constraints to agricultural productivity and marketing in the lagging regions. Access to credit and being adversely affected by weather impacted respondents’ agricultural productivity more than sociodemographic factors.

  Development; Productivity; Input use; Production costs; Credit; Training
  Lagging regions of Bangladesh
  00-07-2015
  00-06-2016
  Socio-economic and Policy
  Constraints

Our survey was designed to increase the understanding of these challenges and opportunities as they pertain specifically to the lagging regions.

2.1. Study Design and Survey Since the aim of the study is to analyze the constraints affecting agricultural production and marketing in the lagging regions, we administered a survey to gather information regarding the characteristics of both the farm families and farming practices in these regions. Specifically, we collected information pertaining to the age, education level, and farming experience of farmers (usually household heads), landholdings, and composition of their households. In addition, we collected data on farming practices, including agricultural input use, operational costs, access to credit, and storage and transportation of agricultural products. Data were collected through face-to-face interviews of the farmers at the field level using a structured questionnaire. The respondents were individuals responsible for making their household’s agricultural decisions. The survey was carried out from July 2015 to June 2016.

2.2. Selection of Lagging Regions In this study, three criteria were considered to determine the lagging regions of the country: ‘Agriculture Productivity’, ‘Agroecological Zones (AEZ)’, and ‘Percentage of the Population below the Poverty Line’. For simplicity, four indicators were used to measure agricultural productivity: (1) Rice yield per acre, (2) percentage of area irrigated, (3) percentage of area under HYV of seed, and (4) cropping intensity. Low yields, low percentage of area under irrigation, low percentages of HYV, and low levels of cropping intensity indicate low levels of agricultural productivity. Data pertaining to these four variables were collected for 21 administrative districts for 2014–2015. The main sources of data were the Yearbook of Agricultural Statistics of Bangladesh 2016 and the Statistical Yearbook of Bangladesh 2016. The data for each of the four variables for the 21 districts were ranked 1 to 21 with the highest value equal to rank 1, second highest value equal to rank 2, etc. The rank total for the district was computed by adding the district’s four variable rankings together. These rank totals were then ranked again, and these ranks were used as the hierarchical position of the regions. Results from the ranking show that Patuakhali ranked lowest with respect to agricultural productivity. All four productivity indicators for this region are very low, indicating the region is extremely deprived with regard to agricultural production. Chittagong Hill Tract and Barisal were ranked the next lowest in terms of agricultural productivity. Followed by Khulna, Noakhali, Sylhet, and Faridpur districts. Most of the indicators for these regions are poor but show moderate improvements compare to Patuakhali, Chittagong Hill Tract, and Barisal. Bangladesh is divided into 30 AEZ. However, some AEZ overlap with each other. Thus, for convenience and ease of analysis, overlapping AEZ were combined to create 12 mutually exclusive regions. Each region contained several administrative districts. The 12 regions differed with respect to their endowment of geographical features, soil type, and fertility conditions. The names of these 12 regions and their corresponding districts are shown in Table 3. A group of 12 indicators was selected to examine the variations among the 12 agroecological regions. The indicators were: Rural literacy rate, per capita regional domestic agricultural product, share of regional domestic product attributed to agriculture (%), farmers’ cooperative society, percentage of net cropped area to total geographic area (%), cropping intensity (%), area under HYV seed as a percentage of total cropped area (%), area irrigated as a percentage of total cropped area (%), consumption of chemical fertilizer, food-grain productivity, number of agricultural workers and net cultivated area per 100 agriculture workers. A composite index of development indicators was formulated from the 12 factors, and the level of development of these regions was classified according to low, medium, and higher using hierarchical positions of the regions. The hierarchical positions of the regions revealed that ‘low Ganges river floodplain’ (Faridpur), ‘lower Meghna river and estuarine floodplain’ (Noakhali), and ‘eastern hills’ (Chittagong hill tract) were the least developed regions in Bangladesh. Furthermore, five districts were selected as lagging based on the percentage of the population below the lower poverty line . Patuakhali, Bagerhat in Khulna, Jhenaidah in Jessore, Nilfamari in Rangpur, and Netrakona in Mymensingh were selected as regions with the most extreme poverty.

  Sustainability 2020, 12, 3956; doi:10.3390/su12103956
  
Funding Source:
1.   Budget:  
  

In Bangladesh, farmers usually live in rural villages, and these villages tend to be disadvantaged relative to other parts of the world. However, the administrative districts and Upazilas in this study were selected because they were the most disadvantaged regions of the country. However, it should be noted that not all farmers in the same sampled Upazila are equally disadvantaged. The farmers in these regions face challenges in all aspects of farming activities. Lack of availability of inputs, high input prices, especially labor costs, limited access to institutional credit, and adverse weather and climate are major constraints to increasing agricultural productivity in these lagging regions. Farmers also face difficulties transporting their products to market, post-harvest losses, low output prices, and lack market information. To minimize these problems and increase crop productivity, the following recommendations should be considered by the government and policymakers. General and product-based technical education and training focused on mechanization and improving the farming system should be offered by government institutions in the lagging regions since many of the farmers in these regions lack formal education and have not yet received such training. As supported by the regression results, farmers using more mechanization have higher yields. Furthermore, various sociodemographic groups have lower rice yields and hence more room for improvement. Thus, any effort to improve rice production should consider the specific needs of various sociodemographic groups. While rice productivity varied across sociodemographic groups, access to agricultural credit, and the effect of climate and weather had larger impacts on rice productivity than the sociodemographic factors. Hence, policymakers and planners should be conscious of these variables in the planning and implementation of development strategies in lagging regions. Specifically, programs that help mitigate the negative effects of climate change, such as crop insurance, should be pursued. Commercial banks and other credit institutions should improve their loan procedures to facilitate farmers’ access to credit within these regions, as many respondents found the procedures to be burdensome. Agricultural extension agents could educate farmers on the available sources of credit, as many respondents did not know what sources of credit were available. In addition, extension agents could provide assistance in completing the application process. Interest rates on agricultural loan interests should be capped or subsidized to discourage farmers from borrowing from moneylenders. Allocation of agricultural credit should be increased, and the government should provide support to the financial institutions in undertaking agricultural credit programs for the farmers of the lagging regions as we found the desire for credit far exceeded the availability of credit. Technical training on high-yielding cultivation procedures and processing and marketing of agricultural products should be introduced to help overcome the marketing constraints that many of the respondents faced. The government could undertake initiatives to establish storage facilities and transportation for agricultural products in rural villages. The government could also assist in the establishment of cooperatives in each village or union to provide short-term storage of perishable products and to facilitate marketing.

  Journal
  


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