Agricultural Research Management Information System

Home
Research Summary
Search
About Us
- ARMIS
- Brochure
Contact Us
Report
User Request
Data Input
Help
- Operation Manual
  - PDF
  - Video
- Program Area & Commodity
We have reached 37600 number of research entries at this moment.

- Logout

Research Detail

Home
Research
Detail

Supply Chain Analysis of Some Major Spices Market in Selected Areas of Bangladesh

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

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

Q.M.S. Islam
Scientific Officer
Spices Research Center,BARI, Shibganj, Bogra

S. Hossain
Scientific Officer
Spices Research Center,BARI, Shibganj, Bogra

M. S. A. Mallik
Director
Spices Research Center,BARI, Shibganj, Bogra

Abstract/ Executive Summary:

The present study analyzed the supply chain of ginger and turmeric marketing in Khagrachari and Rangpur districts. It examined value addition at different levels, post harvest losses, seasonal price variations, instability, and price fluctuations. Both primary and time series data were used for this study. Time series data for the period from 1990-91 to 2005-06 and primary data from July, 2009 to June, 2010 were considered. Both ginger and turmeric cultivation was profitable since the BCRs of ginger and turmeric cultivation were 2.30 and 4.08, respectively. The per quintal marketing cost of ginger in different intermediaries like local traders, bepari, arardar, wholesaler, and retailer were Tk.79.92, Tk.302.40, Tk.31.67, Tk.76.31, and Tk.33.38, respectively. Average value additions by local trader, bapari, wholesaler and retailer were Tk.211.08, Tk.1744.60, TK.875.69 and Tk.1200.12 per quintal respectively. For turmeric, average value additions by local trader, bepari, wholesaler, retailer (dry), processor-cum retailer, and companies were Tk. 1065.44, Tk 2471.24, Tk 1547.30, Tk. 1289.12, Tk 4651.60, and Tk. 22051.37, per quintal respectively. Farmers of Bangladesh appeared to be yield risk lover and would allocate more area to turmeric.

Keywords: Major spices, Market, Selected areas, Supply chain

Location: Khagrachari Hill Tracts, Rangpur district and Spices Research Center,BARI, Shibganj, Bogra

Start Date: 01-07-2009

End Date: 30-06-2010

Program Area: Socio-economic and Policy

Non-commodity: Market analysis

Objectives:

i. To analysis the supply chain of ginger and turmeric in the study areas

ii. To estimate the value addition of ginger and turmeric at different stages of supply chain

iii. To examine the post harvest loss and its impact on farmers’ net price,

iv. To study the seasonal price variation of spices

v. To estimate growth rate, instability and price fluctuation of price , area, production and yield

vi. To analysis factors responsible for determining the acreage under ginger and turmeric cultivation .

Methodology:

Two important turmeric and ginger growing districts namely Rangpur (Nilphamari) and Khagrachari were purposively selected for the study. One upazila of each district was selected where the cultivation of turmeric and ginger was concentrated. Both primary and secondary data were used for this study Secondary data were collected from various published sources. Harvest prices of ginger and turmeric have been deflated by competitive crop price to get the prices in real terms. The study considered the time periods of 1990/91 to 2005/06 for time series analysis. A total of 120 farmers taking thirty from each area for each crop were selected randomly. Eight input suppliers, 12 local traders( farias), 20 beparies, 12 Aratdhars, 10 wholesaler( paikers), 18 retailers, 04 millers/ processors and 2 Spices companies were selected from the above selected areas including major consuming area Dhaka and Gazipur. Two sets of pre-tested interview schedules, one for farmers and other for intermediaries were used for the collection data/information using survey method. Primary data were collected by face-to-face interview during 2009-10 crop season.Analytical Technique A. Cost and return analysis Following profit equation was employed to assess the profitability of production. Net return of producer Π= PF.QF-(TVC+TFC) B. Supply chain analysis Analysis of supply chain includes identifying all the functions performed in a specific commodity sector, organizing them into sequence, and analyzing each function in relation to both the preceding steps and subsequent ones. C. Value Addition by traders Value Addition = Gross margin –Marketing cost Gross Margin =Sale price- Purchase price D. Estimation of growth rates The following growth model was used (Gujarati 1998 ). Y =ae bt Or Ln Y = Ln a +bt E) Instability Estimation Instability was measured by instability index as follows: I=(C.V.)2 X (1-R2) Obviously, 1<(C.V.)2

Source of Information: Spices Research Center,BARI, Shibganj, Bogra

Article Link (Online Journal):

Funding Source:

1. Government

Budget: 1,50.000/-

Total Budget (Tk.) : 1,50.000/-

Achievement/Findings:

The study analyses the supply chain of ginger and turmeric, estimates value addition and post- harvest losses, price variations, and identify determinants of area allocation for ginger and turmeric cultivation in Bangladesh. The study revealed that the main actors involved in the ginger and turmeric supply chain are input supplier, producer, local trader (faria), bepari, aratdar, wholesaler, importer, miller/ processor, spices industry, agent, and retailer. A good amount of value addition has been observed at different stages of ginger and turmeric marketing. The highest value addition was observed for Bepari in ginger marketing and miller/processor for turmeric marketing. Average post-harvest losses of ginger and turmeric are 26.75kg and 12.25 kg per quintal respectively. In terms of production instabilities khagrachari is the riskiest area compared to other areas of Bangladesh. For the country as whole the lagged area and real prices played a dominant role in determining current year area allocation under turmeric cultivation. Farmers of Bangladesh appeared to be yield risk lover and would allocate more area to turmeric. Spices marketing faces various problems such as market control by the fixed traders, price instability, there is no quality management, no quality standers and no grading.

Knowledge Management: Report/Proceedings