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Research Detail

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Mohammad Yousuf Ali
Bangladesh Agricultural University, Mymensingh, Bangladesh.

Md. Rais Uddin Mian
Bangladesh Agricultural University, Mymensingh, Bangladesh.

Md. Saidur Rahman*
Bangladesh Agricultural University, Mymensingh, Bangladesh.

M. Nahid Sattar
Bangladesh Agricultural University, Mymensingh, Bangladesh.

The objectives of the study are identifying activities, problems, backward and forward linkages, analyzing profitability and determining value addition to medicinal products by shop traders. The present study can contribute to the process of expanding the markets through providing updated knowledge and information. This study was carried out at Laxmipur Kholabaria Union of Natore Sadar Upazila in Natore district of Bangladesh based on primary data from shop traders of medicinal products. The investigated union is the largest commercially growing and dominant cluster of 109 medicinal plants (MPs) in the country. Out of a total 109 MPs, 9 MPs like Amrul (Oxalis comiculata), Basok (Adhatodavasica), Hostipolash (Butea superba), Kalomegh (Andrographispaniculata), Misridana (Scopariadulcis), Oshwagandha (Withaniasomnifera), Shotomul (Asparagus racemosus), Shimulmul (Bombaxceiba) and Tulsi (Ocimum sanctum) were selected for this study as they are produced in large quantities. To achieve the results of the study, descriptive statistics, diagram design of backward and forward linkages and cost, return and benefit-cost ratio analysis were used. The traders always conduct both wholesale and retail business of medicinal products. The flactuation of price makes the business risky and it has happened due to irregular supply and demand for the products in the locality. The calculated net return and BCR were estimated at Tk 361936 and 1.38; respectively that indicate the shop trading enterprise as a profitable business in the study area.Value addition to the products was done mainly through direct selling and also processing and selling and the highest value addition was for crushing selling of Shotomul and the lowest for dust form selling of Oshwagandha. Due to huge weight loss and high cost for processing, high value was added to the converted dry or dust products during selling. Some major problems and constraints, opprtunities and challenges for operation of the enterprise were also identified under the present study. So, for the promotion and sustaining of the medicinal product enterprises and incresing contribution of the enterprise to rural economy as well as the national economy, government and non-government organizations should take and implement some necessary activities related to medicinal plants and products such as research programs, training programs for farmers, shop traders including other entrepreneurs and stakeholders such as traders’ association, overall support mannual and policy, etc. through proper utilizing the opportunities along with overcoming and minimizing the problems and challenges.

  Medicinal Product, Medicinal Plant, Shop Traders, Laxmipur Kholabaria, Profitability, Value Addition
  Laxmipur Kholabaria Union of Natore Sadar Upazila in Natore district in Bangladesh
  
  
  Development of Host and Medicinal Plants
  Medicinal Plants, Market/Marketing

The specific objectives of the study are: to identify and explain business activities of wholesaler-cum-retailers of medicinal products; find out backward and forward linkages of wholesale-cum-retail enterprise of the products; to analyse profitability of the enterprise in terms of cost-return estimatimation; and to determine value addition to the products in the wholesaler-cum-retailers’ level. 

This study was done at Laxmipur Kholabaria Union of Natore Sadar Upazila in Natore district in Bangladesh based on primary data collected through face-to-face interview from wholesaler-cum-retailers of medicinal products. The Laxmipur Kholabaria union is the biggest commercially growing and dominant cluster of medicinal plants (MPs) of 109 types in the country. Out of total 109 MPs, a considerable number of the MPs are dealt in business by shop traders. But 9 MPs like Amrul (Oxalis comiculata), Basok (Adhatodavasica), Hostipolash (Butea superba), Kalomegh (Andrographispaniculata), Misridana (Scopariadulcis), Oshwagandha (Withaniasomnifera), Shotomul (Asparagus racemosus), Shimulmul (Bombaxceiba) and Tulsi (Ocimum sanctum) were selected for investigation of the study as their transaction occurs in huge quantities in the business mainly in consideration of locally available supply, minimum volume and essential period for storage in the shops. On the other hand, 10 shop traders of medicinal products out of 22 were in the union were selected as the respondents applying purposive sampling technique after preparing a perfect list of the shoptraders through supports of local Upazila agriculture office (UAO) personnel and the traders. Besides, we also organized and implemented a Focus Group Discussion (FGD) using a checklist with participation of shop traders, UAO representative and the researchers for gaining basic, prileminery and field information and enperience about the study and development of a questionnaire for a successful field survey on the primary data collection. Based on the FGD information and experience, the questionnaire for interviewing the shop traders of medicinal products was drafted, pre-testing, revised and finalized before starting the survey of data collection. The collected data were processed and management in proper systematic way as per the set objectives of the study. Ultimately, the processed data were analyzed by applying descriptive information, tabular statistics, diagram design of backward and forward linkages and cost, return and benefit-cost ratio analysis. Therefore, several analytical tools and formulas used in the study are mentioned below-

(i) Interest on Operating Capital (IOC): To calculate the interest per year of operating capital invested for operating the shop trading enterprise, the following formula was used.

IOC= AI it / 2

Where, IOC = Interest on operating capital AI = Average Investment (capital) i = interest rate, t = time period

(ii) Gross Return (GR): Gross return of the enterprise was measured by multiplying total sold quantity by average selling price as follows.

GRi =∑ Qi Pi

 i =1

Where, Qi = Quantity of the i-th product Pi = Average price of the i-th product i = 1, 2, 3, ------------------------ n. 

(iii) Total Cost (TC): All costs of the enterprise were counted together for calculating total cost. Total cost was estimated by adding total fixed cost and total variable cost as follows.

TC = TFC + TVC

Where, TFC = Total fixed cost TVC = Total variable cost

(iv) Net Return/Profit (NR): Net return/profit of the enterprise was measured by deducting total cost (total fixed and variable cost) from the gross return. Following equation was applied in this direction.

NR = GR – TC = GR – (TVC + TFC)

= GR – TVC - TFC

  Bangladesh Rural Development Studies, 24(1), 2021 (87-102)
  
Funding Source:
1.   Budget:  
  

Shop traders and enterprise of medicinal products is an important part of commercial production, processing and marketing of medinal plants and products in Laxmipur-Kholabaria union of Natore district in Bangladesh. At first, the wholesaler-cum-retailers contribute to the local MP producers for their income earning and MP production sustaining through purchasing the producers’ growing MP products and then contribute to the disdribution of the products throughout the country through selling the products to different local and outside buyers. But, all the business activities of the traders are locally conducted from the shops situated in the local markets and all the buyers collect the products from the shops based on their own interest and responsibility. The shop traders have no implications in linkage of regional, national and global markets inaspect of their business. Moreover, many medicinal, cosmetic, Drug Company and food processing industry demanded medicinal products as a raw material for making various products including cosmetics, food and feed supplement and other herbal products. Besides, most of the medicinal plants of Bangladesh are used in the preparation of mainly Unani, Ayurvedic and Handard herbal medicines. Both India and China earn a handsome amount of foreign exchange by exporting medicinal plants and their semi-processed products to other countries, including Bangladesh. All the continents of Africa, Asia, Latin America, Australia and Europe are the large users of herbal medicines today. Being a valuable item of trade, Bangladesh can earn a handsome amount of foreign exchange by exporting this natural wealth to other countries. However, considering the huge export market globally, we are still in a rudimentary stage, but there are available scopes to expand the markets of medicinal products in both country and outside countries. In this situation, for the wholesaling-cum-retailing enterprise some major problems, opportunities and challenges were identified under present study. Therefore, the policy suggestions and recommendations for promotion and sustaining the enterprise are: to establish research centre/ station under agricultural related research institute in commercial medicinal plants and products production, processing and business regions with research programs regarding the production, processing and business activities; to organize and provide training by concern government and non-government organizations to potential and progressive entrepreneurs, actors, and stakeholders of medicinal plants and products on scientific activities of production, processing, storage, packaging, transportation, etc.; to form effective co-ordination service team with personnel of government and non-government concern organizations under the Department of Agricultural Extension (DAE) and provide appropriate services related to moisture testing of dry products, product quality maintenance, market linkage development, traders’ association organation, available bank credit delivery and other extension service provision, etc.; and to formulate and implement effective mannual and policy for supporting and promoting the medicinal plant secor. Finally, concerned government and non-government institutions should come forward for effective implementation of the suggestions and recommendations with the provision of necessary supports to the medicinal plants and product entrepreneurs, actors and stakeholders.

  Journal
  


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