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Potentialities of Major Fruits Farming, Marketing System and Price Behaviour in Hill Regions of Bangladesh

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

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

M.F. Dewan
Scientific Officer
Agricultural Economics Division, BARI, Gazipur

M. Mohabbatullah
Principal Scientific Officer
Hill Agricultural Research Station, BARI, Khagrachari

Abstract/ Executive Summary:

The study was conducted for understanding the present situation of production, processing and marketing system of major fruits in different hill regions of Bangladesh. Data were collected from 1230 fruit growers and 1580 from different type’s intermediaries of eight (8) upazilas considering accessible and less accessible areas. The project analysis and sensitivity analysis indicated that BCR is greater than one, NPV is positive and IRR is greater than opportunity cost of capitalfor all fruits cultivationreflecting that, it is highly profitable under changing circumstances.The average ranges of price variations for mango, jackfruit, litchi, pineapple, banana and orange in accessible areas were 1-9%, 3-8%, 22-34%, 3-13%, 5-19% and 7-13% higher than those of less accessible areas. At farmers and traders level, the total post-harvest loss of mango, jackfruit, litchi, banana, orange and pineapple were 24%, 38%, 17%, 37%, 20% and 27% respectively. In case of future price prediction, price will be increased by 3%-25% for all fruits for the next three years (2014, 2015 and 2016) based on the price of 2012. Unplanned plantation, use of local varieties, transportation facilities, lack of agro-processing industriesand low prices were identified as the major constraints in the hill areas.

Keywords: Potentialities, Fruits farming, Hilly areas

Location: Rangamati, Khagrachari, Bandarban and Moulavibazar districts

Start Date: 01-08-2010

End Date: 01-07-2013

Program Area: Socio-economic and Policy

Non-commodity: Price behavior, Market analysis

Objectives:

i. To identify the present socio-economic situations of the farmers.

ii. To examine the nature of marketing system, post-harvest loss, marketing cost, marketing efficiency and price spread of major fruits marketing channels

iii. To analyse the extent of seasonal price variation, behaviour of trend, the existence of cycles in prices, price forecasting and market integration of major fruits marketing.

iv. To investigate the techniques used in processing, its future potentialities for both in domestic and international markets for increasing income and employment of hilly farmers.

v. To suggest appropriate policy guidelines for future technological development of fruits farming and marketing systems.

Methodology:

The study areas covered four hill districts namely Rangamati, Khagrachari, Bandarban and Moulavibazar where fruits are intensively grown in compare to other parts of Bangladesh. From eight upazilas of four districts a total of 1230 growers taking 30 from each location for each fruits were selected as sample farmers. In case of different intermediaries, a total of 1580 samples were selected from both primary and secondary markets among which 820 farmers, 240 local traders, 144 bepari, 48 urban aratdars, 144 local retailers and 96 urban retailers. Again a considerable number of samples like wholesaler (72), proessing industry (1), importer (12) and agents (3) were selected purposively for in-depth interview to know the main characteristics of urban market, processing industry and other related issues. For selecting the farmers, simple random sampling technique and for intermediaries stratified proportionate random sampling technique for each group of intermediaries were followed. The following six fruitslike Banana, Pineapple, Jackfruit, Mango, Orange, and Litchiwere selected among the different fruits which are extensively grown in hill regions. The following techniques were used for the total analysis of the report. i) Cost and return of selected fruits. ii) BCR, NPV and IRR were calculatedfor different fruit garden. iii) For resource use efficiency, Cobb-Douglas/Production Model was used. iv) Nature of existing processing system in the fruits processing industries for value chain analysis. v) Measurement of marketing efficiency through selected indicators vi) Assessment of post-harvest loss was calculated bymultiple linear regression models Growth, Decomposition and fluctuation of prices were calculated. vii) Determination of market integration through co integration method viii) Price forecasting analysis by using ARIMA model In addition, for analysis of important socio economic criteria, descriptive statistical tools like, mean average percentage was used whenever necessary.

Source of Information: Annual Research Report 2013, Agricultural Economics Division, BARI, Gazipur

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The overall literacy rate in hill regions are estimated at about 26% in comparison to the national average of 58.4%. The average size of fruit garden was calculated as 0.81 ha/farm, which was about 46% of total land allocated for fruit cultivation. The average per capita income (Tk 45420/annum) of the people of hill areas was lower than the national average (Tk 57652/annum). The agriculture is the major income generating component (67%) but it contributed only about 36% of the total income. Local varieties and poor production practices were followed by the farmers. Farmers obtained 11%, 32%,23%, 25%, 21%and29% less yield for mango, jackfruit, litchi, banana, orange and pineapple cultivation compared to the research managed yield. The project analysis and sensitivity analysis indicated that BCR is greater than one, NPV is positive and IRR is greater than opportunity cost of capitalfor all fruits cultivation reflecting that, it is highly profitable under changing circumstances.The average ranges of price variations for mango, jackfruit, litchi, pineapple, banana and orange in accessible areas were 1-9%, 3-8%, 22-34%, 3-13%, 5-19% and 7-13% higher than those of less accessible areas. At farmers and traders level, the total post-harvest loss of mango, jackfruit, litchi, banana, orange and pineapple were 24%, 38%, 17%, 37%, 20% and 27% respectively.In case of future price prediction, price will be increased by 3%-25% for all fruits for the next three years (2014, 2015 and 2016) based on the price of 2012.Farmers in hilly areas are very much reluctant to fruits production due to their ignorance and lack of modern technical knowledge. Appropriate package of modern fruits production technology, identification of suitable fruit growing zone according to desired hill slopes as well as low cost quick transportation facilities should be ensured for increasing income and livelihood pattern of the hilly farmers of Bangladesh.

Knowledge Management: Report/Proceedings