Farmers in Bangladesh are known to be a resilient lot who have sound informal knowledge of what many tend to describe as 'agro economics'.
Then why do they very often encounter problems over marketing of their produce? What troubles them most is their inability, at times, to secure the fair price particularly in the case of crops like rice, jute, potato and vegetables.
Take the case of potato crop this year. The potato growers are not getting even half of their cost of production. The average price of potato at the growers' level is now Tk 3.0 a kilogramme (kg) and at the retail level it is being sold at Tk 7.0 a kg in Dhaka city. Many potato producers have decided against harvesting their crop because after paying the cost of labour they would have nothing left for themselves.
Newspapers have carried pictures showing farmers blocking highways with their potatoes in protest against the prevailing 'extremely low price' of this widely consumed tuber crop.
Farmers were found to be very dissatisfied with the price of rice during the last two years. But, fortunately, they did not dispose of rice or paddy on highways blocking traffic movement. This year rice price is high. But it is difficult to say whether the rice growers are benefited by the higher price of the main staple or not.
In fact, it is the problem of plenty. But why does it happen? Why do farmers fail to make right crop planning taking into cognisance the demand and supply factor?
Two factors---market price and suitability of land in terms of cultivation of crops--- primarily influence the production plan of the farmers, particularly during the dry season.
If the market price of any crop is found to be very attractive, the farmers demonstrate their propensity to grow the same over large areas in the next dry season expecting higher return. This leads to higher production of the same crop which, unfortunately, produces a frustrating result-low price-for the growers. Next season, they switch over to some other crop that has the prospect of fetching higher return. And the cycle goes on and on.
However, there are some areas where land is suitable for growing certain crops and the growers have little manoeuvrability in this respect. They cannot switch over to crops of their choice because of the limitation regarding soil quality.
But farmers' failure to make the right choice about the cultivation of crops is not solely responsible for their plight over 'abundant' production of certain crops. Distortions in the entire marketing system and lack of adequate storage capacity also play an important part in it.
The presence of middlemen---their number is unnecessarily high--- in the marketing of farm produce is thought to be responsible for not ensuring fair price for farmers and reasonable price for consumers at the retailers' level. The people engaged in between the growers and the consumers while trying to ensure some profit for them, naturally, push up the cost of goods. There has not been any effort on the part of the government to eliminate or reduce the number of middlemen in the marketing system.
Men who buy farm produce from growers are well aware about different stages involved in between the growers and the consumers. So, they try to keep the cost of buying primary commodities at the minimum possible level. They know any higher purchasing price would land them in trouble while disposing of the produce in the nearby rural wholesale markets. And in the case of bumper production of any crop, the middlemen usually exploit the growers most. Another problem that causes enough of sufferings to the growers is the lack of adequate storage facilities where vegetables can be preserved for some months. A case in point is potato. Cold storages are not in a position to offer space to growers willing to store potatoes with a view to selling the same at higher prices later.
The agencies concerned should look into all issues relevant to the marketing of farm produces and ensuring fair prices for growers. They would also have to keep in mind the interest of consumers. There would be elimination of many middlemen if an efficient agricultural marketing system had been put in place. But that should not be a problem since the introduction of improved technology and the inevitable process of mechanisation have displaced many people from their jobs in a number of areas. People affected in the process have switched over to alternative sources of livelihood.  Â
zahidmar10@gmail.com
Dealing with the problem of plenty
Shamsul Huq Zahid | Published: February 10, 2014 00:00:00 | Updated: November 30, 2024 06:01:00
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