Supply Chain Analysis of Kataribhog (Aman Season) Rice at Dinajpur District in Bangladesh

Abstract

The purpose of this study was to investigate the Value Chain of Kataribhog (aromatic) rice at Dinajpur district in Bangladesh. A structured interview schedule was used for primary data collected from the rice farmers. The findings of this study revealed that the yield of Kataribhog rice was 1250 kg/acre and gross return was 51,200 Tk./acre. The cost of cultivation of Kataribhog rice was 38045.75 Tk./acre. On full and current cost basis the Benefit Cost Ratio (BCR) was found 1.35 and 2.05, respectively. About 75% of the produced aromatic rice was supplied to the domestic market by the millers and different companies. Remaining 25% was exported in different countries. The study also found that, on an average the marketing cost of aromatic rice for bepari, aratdar (paddy), miller, aratdar (rice), wholesaler and retailer were estimated as Tk. 81.90, Tk. 91.80, Tk.761.71 Tk. 73.49, Tk. 95.57, and Tk. 75.57, per quintal respectively. The share of net margin (other than the farmers) earned by the faria/bepari, paddy aratdar, miller, aratdar (rice), wholesaler and retailer was estimated as 7.56%, 9.42%, 42.75%, 11.02%, 11.33% and 17.92%, respectively. The producer share to the total rice value was 63.53% with a farm-retail price spread of Tk. 2612 per quintal. In the study area, major constraints found for aromatic rice production were labor unavailability, pest and disease problem, high cost of input,   high cost of labor, lodging problems. Besides, the constraints associated with aromatic rice marketing were lack of storage facilities, lack of price regulation and execution. Proper planning and measure from the government side to solve the problems in the production and marketing would encourage farmers for better production and distribution of aromatic rice in the country.

Keywords: Value addition, marketing margins, price spread and producers share

DOI: 10.7176/EJBM/11-1-02