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Marketing and Price Behaviour of Brinjal in Some Selected Areas of Bangladesh

M. A. Matin
Senior Scientific Officer
Agricultural Economics Division, BARI, Gazipur

M. A. Hossain
Senior Scientific Officer
Agricultural Economics Division, BARI, Gazipur

Q. M. Alam
Chief Scientific Officer and Head
Agricultural Economics Division, BARI, Gazipur

Abstract/ Executive Summary:

The present study is an attempt to analyse the marketing and price behaviour of brinjal in selected areas viz., Chittagong, Comilla, Jamalpur, Jessore, Rangpur and as well as whole of Bangladesh in terms of growth, instability, annual fluctuation of prices, and decomposition of time series components. Both primary and secondary data were used for the study. Growth rates of real prices in Chittagong and Jessore were found to increase over the period due to high demand of brinjal. Area instability of brinjal in Rangpur was the highest followed by Comilla, Chittagong, Jamalpur and Jessore during in terms of instability index. It was observed that annual real prices of brinjal in selected areas fluctuated to a great extent and it was highest in Comilla, followed by Jamalpur, Chittagonj, Rangpur. The upward trend of real price was found for Chittagong and Jessore. It is evident from the seasonal indices that wide seasonal fluctuation occurred in brinjal prices in all the selected markets. The price flexibility was estimated to be –0.2134 in Rangpur. For the country as a whole the last year area played a dominant role in determining current year area allocation under brinjal.

Keywords: Marketing, Price behaviour, Brinjal, Price cycle, Marketing channel

Location: Chittagong, Comilla, Jamalpur, Jessore and Rangpur district

Start Date: 00-00-1989

End Date: 00-00-2004

Program Area: Socio-economic and Policy

Non-commodity: Market analysis, Price behavior

Objectives:

i. To estimate the growth rates, instabilities and fluctuations of price, area, production and yield of brinjal

ii. To analyse the price behavior (i.e. trend, seasonal and irregular) and the existence of brinjal price cycles in Bangladesh

iii. To analysis the factors responsible for determining the acreage under brinjal cultivation

iv. To determine the price flexibility and see the role of supply of output in influence current prices of brinjal

v. Examine the economic efficiency of various brinjal-marketing channels through Selected indicators

vi. To determine the constraints and suggest guidelines for improving the marketing systems.

Methodology:

Five major brinjal growing districts of Bangladesh, namely Chittagong, Comilla, Jamalpur, Jessore and Rangpur, were selected for this study. These five districts contributed more than forty percent towards the country’s brinjal production. (BBS, 2004). Both primary and secondary data used for this study. Secondary data were collected from various published sources. These sources are Bangladesh Bureau of Statistics (BBS), Department of Agricultural Marketing, (DAM) and other related agencies in Bangladesh. Harvest prices of brinjal have been deflated by agricultural raw material price index to get the prices in real terms. The study considered the time periods of 1989/90 to 2003/04 for time series analysis. A total sample of 100 growers was chosen randomly taking 20 farmers from each district. Five primary and five secondary markets were selected taking one primary and secondary market from each district. Dhaka and Gazipur were selected as a wholesale and retail markets were selected as a major brinjal consuming areas. In addition, 82 traders like faria, bepari,aratdar, paiker and retailer were selected . The selected respondents were interviewed several times during the month of July/06 to June/07.Information were collected using a pre designed interview schedules through direct interview method. Collected data were edited, compiled, summarized and analyzed to attain desired objectives of the study. For area response Nerlovian Partial Adjustment model was used for selected areas of Bangladesh.

Source of Information: Annual Research Report 2007, Agricultural Economics Division, BARI, Gazipur

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Growth rates of real prices in Chittagong and Jessore were found to increase over the period due to high demand of brinjal. Area instability of brinjal in Rangpur was the highest followed by Comilla, Chittagong, Jamalpur and Jessore during in terms of instability index. It was observed that annual real prices of brinjal in selected areas fluctuated to a great extent and it was highest in Comilla, followed byJamalpur, Chittagonj, Rangpur . Annual time – series data of prices consisted of three components viz., trend, cyclical and irregular movements, which were decomposed to see the annual price movement separately. The upward trend of real price was found for Chittagong and Jessore. The length of cycle in real prices was found 3 - 6 years on an average in the selected areas. The extent of fluctuation in irregular component was the highest for Comilla Chittagong and Jamalpur during the study period. It is evident from the seasonal indices that wide seasonal fluctuation occurred in brinjal prices in all the selected markets. The price flexibility was estimated to be –0.2134 in Rangpur. For the country as a whole the last year area played a dominant role in determining current year area allocation under brinjal. The district result showed that last year real price was an important for determining variable in area response function, particularly for Jamalpur district. The farmers’ did not take into consideration the yield and price risk in the preceding two years for making a decision about the allocation of area under brinjal.

Knowledge Management: Report/Proceedings