Improvement of Marketing System of Fruits and Vegetables in Bangladesh

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Improvement of Marketing Systemof Fruits and
Vegetables in Bangladesh
Professor Dr. Md. Kamrul Hassan
Department of Horticulture Bangladesh
Agricultural University
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Research 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
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Selected commodities Potato, brinjal, okra,
mango and banana
Selected Commodities and Objectives
Fruit area (2010)
Vegetable area (2010)
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Methodology (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

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Methodology (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

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Results Rice (Secondary Data)
RICE
PRICE VARIATION
CV 2.96
GLOBAL RANKING
SEASONALITY
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Results Potato (Secondary Data)
PRODUCTION PRICE
SEASONALITY
GLOBAL RANKING
CV 24.75
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Results Potato (Primary Survey)
Potato marketing channel (Bogra-Dhaka)

• Pakhri, Cardinal, Granula
• Wash
• Long channel (Faria)
• Early harvest

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Results Potato (Primary Survey)
Marketing cost and margins of potato
intermediaries
Faria, N25 Bepari, N25 Aratdar, N25,
Wholesalers, N25 Retailers , N5
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Results 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
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Results Potato (Primary Survey)
Sequential steps of storing of potatoes in
commercial cold storage
Private cold store
Traditional Cold store
BADC Cold store
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Results Brinjal (Primary Survey)
CV 35.75
CV 35.75
PRICE VARIATION
SEASONALITY
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Results Brinjal (Primary Survey)
Jessore (Chougacha)-Dhaka
Norshingdi-Dhaka
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Results Brinjal (Primary Survey)
Marketing cost and margins of brinjal
intermediaries
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Results Okra (Primary Survey)
CV 35.75
CV 19.90
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Results Okra (Primary Survey)
Channel (Comilla-Dhaka)
Marketing costs and margins
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Results Okra (Primary Survey)
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Results 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
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Results Banana (Primary Survey)
Mdahupur-Dhaka Channel
Costs and margins of intermediaries
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Policy 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

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Policy 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

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Policy 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

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Policy 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.

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Policy 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.

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THANK YOU FOR PATIENT HEARING