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Journal of Applied Sciences

Year: 2004 | Volume: 4 | Issue: 4 | Page No.: 513-520
DOI: 10.3923/jas.2004.513.520
A Study on Price Spreads of Major Crops in Selected Markets of Bangladesh
Mohammad Ismail Hossain, Mohammad Nurul Huda, Mst. Esmat Ara Begum, Md. Akhtaruzzaman Khan and Md. Golam Rabbani

Abstract: The study was conducted to examine the producer’s share to consumer’s prices to understand the level of marketing efficiency of major crops (rice, wheat and jute) with the help of primary data collected randomly from 55 intermediaries. Out of the intermediaries interviewed 17 was for rice, 17 was for wheat and 21 was for jute in different market levels of Bangladesh. In the study areas, there were four tiers of market/market levels viz. primary market, secondary market, higher secondary market and terminal market. Farmer’s share of consumers’ taka of Aman and Boro paddy/rice were 71 and 72%, respectively. In wheat marketing chain, the share of farmer’s in retail prices was 66%. The farmers’ share to consumers’ prices was 53% for white jute and 54% for tossa jute. Amongst the business intermediaries involved in rice, wheat and jute trading, millers received highest net marketing margin (21% total net margin of all intermediaries) in case of rice (Aman and Boro), retailers (57%) in case of wheat and exporters in case of jute (57% for white jute and 39% for tossa jute). Farmers’ net share of consumer’s prices is lower for wheat than rice. Total marketing cost is higher in case of wheat and jute than rice. Rice market appeared more efficient followed by wheat markets. Jute markets were less efficient in terms of farmer’s gain than rice and wheat markets. Bangladesh almost becomes a mono-crop (rice) growing country (covering 78% of net area cropped) because marketing system favours more farmers share to consumers paid prices than any other crop.

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How to cite this article
Mohammad Ismail Hossain, Mohammad Nurul Huda, Mst. Esmat Ara Begum, Md. Akhtaruzzaman Khan and Md. Golam Rabbani, 2004. A Study on Price Spreads of Major Crops in Selected Markets of Bangladesh. Journal of Applied Sciences, 4: 513-520.

Keywords: price spread, marketing efficiency and marketing margin

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