Title: Improvement of Marketing System of Fruits and Vegetables in Bangladesh
1Improvement of Marketing Systemof Fruits and
Vegetables in Bangladesh
Professor Dr. Md. Kamrul Hassan
Department of Horticulture Bangladesh
Agricultural University
2Research Background
Vegetables
Fruits
- Requirements
- Fruits vegetables 400 g day-1capita-1
- Availability
- Fruits vegetables 211 g day-1capita-1
- Rice 416 g day-1capita-1
- Postharvest loss
- 24-44 in Bangladesh
Rice
3Selected commodities Potato, brinjal, okra,
mango and banana
Selected Commodities and Objectives
Fruit area (2010)
Vegetable area (2010)
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2
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4Methodology (Data Collection)
- Secondary data collection
- Secondary data on area, production and prices
were collected - Time Series Analysis was used to examine changes
- Seasonality was calculated using Moving Average
Method - Primary data collection
- Primary data were collected from market actors
using FGD and questionnaires. Data were collected
by trained enumerators and Research Fellows - Data collection from growers
- Stratified random sampling were followed
- Leading 1-2 Districts for each commodity selected
- Selected growers (N100 per commodity) were
interviewed using structured questionnaire - Data were collected on age, education, land,
cultivated varieties, production and marketing
costs, sale price, price formation, net income
and constraints
5Methodology (Data Collection)
- Data collection from intermediaries
- Main intermediaries are Faria, Bepari, Aratdar,
wholesalers, retailers - Faria and Bepari were interviewed from assemble
markets (N100) - Aratdar and wholesalers were interviewed from
wholesale markets (N100) - Retailers were interviewed from retail markets
(N100) - Data were collected on trade volume, marketing
costs, purchase and sale prices, price formation,
gross and net margins and constraints - Price spread, growers share, return on
investment, marketing efficiency (Acharya and
Agarwal 2004) were investigated
6Results Rice (Secondary Data)
RICE
PRICE VARIATION
CV 2.96
GLOBAL RANKING
SEASONALITY
7Results Potato (Secondary Data)
PRODUCTION PRICE
SEASONALITY
GLOBAL RANKING
CV 24.75
8Results Potato (Primary Survey)
Potato marketing channel (Bogra-Dhaka)
- Pakhri, Cardinal, Granula
- Wash
- Long channel (Faria)
- Early harvest
9Results Potato (Primary Survey)
Marketing cost and margins of potato
intermediaries
Faria, N25 Bepari, N25 Aratdar, N25,
Wholesalers, N25 Retailers , N5
10Results Potato (Primary Survey)
Performance of potato markets (Bogra
Munshigonj-Dhaka City)
Channels Marketing Efficiency (Acharya) Price Spread (TK/kg) Growers share ()
Shibgonj-Karwan Bazar 0.82 (CV 14.29) 4.30 (CV 31.11) 18.69 (CV 10.03)
Shibgonj-Jatrabari 0.85 (CV 11.72) 4.10 (CV 33.41) 18.72 (CV 10.34)
Kahalu-Karwan Bazar 0.83 (CV 14.50) 4.30 (CV 31.68) 18.72 (CV 10.21)
Kahalu-Jatrabari 0.86 (CV 12.07) 4.27 (CV 32.47) 18.81 (CV 12.34)
Munshigonj-Karwan Bazar 1.09 (CV 6.35) 3.90 (CV 54.66) 24.53 (CV 21.74)
Munshigonj -Jatrabari 1.16 (CV 6.71) 3.72 (CV 52.34) 24.81 (CV 9.72)
Tongibari-Karwan Bazar 1.05 (CV 6.03) 4.07 (CV 51.24) 23.74 (CV 9.74)
Tongibari-Jatrabari 1.08 (CV 6.44) 4.02 (CV 53.98) 24.02 (CV 1025)
Price 2012
11Results Potato (Primary Survey)
Sequential steps of storing of potatoes in
commercial cold storage
Private cold store
Traditional Cold store
BADC Cold store
12Results Brinjal (Primary Survey)
CV 35.75
CV 35.75
PRICE VARIATION
SEASONALITY
13Results Brinjal (Primary Survey)
Jessore (Chougacha)-Dhaka
Norshingdi-Dhaka
14Results Brinjal (Primary Survey)
Marketing cost and margins of brinjal
intermediaries
15Results Okra (Primary Survey)
CV 35.75
CV 19.90
16Results Okra (Primary Survey)
Channel (Comilla-Dhaka)
Marketing costs and margins
17Results Okra (Primary Survey)
18Results Mango (Primary Survey)
Performance of mango markets (Rajshahi and C.
Nowabgonj-Dhaka City)
Channels Marketing Efficiency (Acharya) Price Spread (TK/kg) Growers share ()
Bagha-Karwan Bazar 1.59 (CV 10.84) 20.75 (CV 14.36) 17.97 (CV 10.03)
Bagha-Badamtali 2.18 (CV 11.72) 16.14 (CV 11.51) 18.70 (CV 11.47)
Bagha-Jatrabari 1.48 (CV 10.31) 18.71 (CV 16.34) 18.28 (CV 10.21)
Bholahat-Karwan Bazar 1.56 (CV 10.73) 19.75 (CV 16.31) 18.51 (CV 9.74)
Bholahat-Badamtali 2.09 (CV 10.77) 15.14 (CV 11.87) 19.35 (CV 10.34)
Bholahat-Jatrabari 1.44 (CV 10.09) 17.71 (CV 10.95) 18.92 (CV 10.67)
Present packaging
Previous packaging
19Results Banana (Primary Survey)
Mdahupur-Dhaka Channel
Costs and margins of intermediaries
20Policy Implications and Recommendations
- SAFEGURDING GROWERS INTEREST
- Conduct farmers training to produce quality
products - Contract farming should be encouraged to reduce
costs of intermediation and integrate producers
into supply chain - MONITORING INTERMEDIARIES IN SUPPLY CHAIN
- Net margins of retailers are consistently and
unusually higher than other intermediaries
regardless of the crop - So, monitoring should be strengthened at the
retail and also wholesale levels, especially in
Dhaka city - Public perception is that there exists syndicate
in market which controls prices. Our study
revealed that even though there is no official or
visible syndicate but there exists some sort of
indirect price control in supply chain,
especially in assemble markets - CREATING STORAGE FACILITIES FOR PERISHABLES
- Specialized storage facilities should be created
for high value fruits and vegetables
21Policy Implications and Recommendations
- IMPROVING STORAGE FACILITIES FOR POTATOES
- Appreciable number of cold stores (393 cold
stores) have been created for potatoes - The most important constraint in cold storage is
the lack of uninterrupted supply of electricity
during loading period of March-April - Research to produce alternative energy should be
given top priority (conversion organic waste to
energy) - Increasing BADC cold stores for seed purposes.
There are 18 BADC cold stores are operating with
profitable seed programme - BADC staff may monitor private cold stores and
issue certificates of good storage practices like
adequate turn over (Pallat) and intake fresh
air - Awareness should be created so that growers use
BADC seeds - Incentives and government policies would be
required so that more private cold firms springs
up
22Policy Implications and Recommendations
- MAINTAINING QUALITY AND SAFETY IN SUPPLY CHAIN
- Bangladesh lacks standardized quality assurance
systems for horticultural produce. Proper
arrangement should be made to train, and
ultimately to accredit, growers and traders in
major international certifications such as HACCP,
ISO and GAP - STRENTHENING PUBLIC-PRIVATE PARTNERSHIP
- Public private partnership is urgent to introduce
technologies like low temperature storage,
refrigerated transport vehicle, ethylene-induced
ripening, plastic packaging value addition. The
government could start one or two in order to
encourage the private sectors to do more
(multi-chambered storage and ripening chamber) - DISSEMINATION OF APPROPRIATE TECHNOLOGY
- Government can help disseminate technical
information (e.g. apples, grapes, dates,
broccoli, etc. can be stored with potato while
mango cannot be). This is probably more important
than providing improved access to capital - Traditional storage technology should be refined
and disseminated
23Policy Implications and Recommendations
- IMPROVEMENT OF TRANSPORTATION SYSTEM
- Roads and highways are the most important factors
in rapid and timely transportation of
perishables. Quantitative and qualitative losses
are enormous due to delay, impacts and vibration. - Wastage occurs due to restricted movement of
trucks into Dhaka. The trucks are not allowed to
enter into Dhaka after 600 AM. Relocation of
wholesale markets at vicinity of Dhaka would be
considered - IMPROVEMENT OF PACKAGING SYSTEM
- Introduction of affordable plastic package is
necessary. For long-distance transportation,
still voluminous package made of bamboo baskets
and gunny sacks are predominantly used, which
result in high spoilage due to impact, vibration
and heat generation - Recently, mango traders adopted plastic crates in
transportation which has created positive impacts
in minimizing loss and maintain quality.
24Policy Implications and Recommendations
- ADOPTION OF MODERN MARKETING
- Adoption of modern technology (weighing machine,
fork lift) is important in agricultural
marketing. However, there is debate on this issue
whether modernization can curtail jobs. - But trade-off would be a useful alternative and
extra work force can find better option and
contribute to the overall economic development of
the country. The low level of income and lack of
awareness are assigned as the big causes - RAPID ACCESS TO MARKET INFORMATION
- Access to right information on market price is
very important. In this regard, DAM can send
price information of important agricultural
commodities to the farmers by SMS. - MINIMIZE MALPRACTICE IN MARKETING
- Though there are government departments to
monitor activities in the markets. But still due
to certain compulsions of the farmers and lack of
retention of power, they are being exploited by
the middlemen through their malpractices.
Sometimes, the undue deductions are made. In this
regard, taking Dholta can be mentioned.
Generally, traders take five kilograms more per
mound.
25THANK YOU FOR PATIENT HEARING