Poor dairy farmers fall in debt in Pabna due to 'Dadan trap'

PABNA, FEB 18: Impoverished dairy farmers in Pabna's Bera Char said they have been sustaining serious losses and falling in debt due to cattle traders' conditions on milk selling after the traders' provided them investment to buy and raise dairy cows.
Farmers said they have been considering changing business due to the obligation of selling milk at a fixed rate of Tk 45-50 per litre to the traders. Currently, milk is sold at Tk 70-80 per litre in the area's closest local market across the river.
Charpenchakola, Charsandashia, Charnagda of Haturia Nakalia Union in Bera Upazila is a vast char area surrounded by the Padma-Jamuna River and is known for milk production. Thousands of families have been earning a living with at least one small and medium sized dairy farm in every house, the FE correspondent found during a visit.
As most of the farmers do not have large amounts of capital for buying cows, building cowsheds, and bearing food and medical expenses -- they take an investment of Tk 40,000-50,000 per cow on condition from local cattle traders. Regardless of milk's market price, farmers are obliged to sell at the fixed rate to the traders until the investment sum is repaid, or till a certain amount of time. The cattle traders are called Dadan traders, as they provide the conditioned investment, locally known as Dadan.
A huge amount of milk is collected from the area every day and supplied to various districts of the country, including in the capital.
Farmers started raising cows in chars 10-15 years ago and continued the profession as they saw success. Most of the farmers in the area are poor and marginal. Farmers said that many have to take Dadan before starting milk production. Some take the investment to buy cows, others to meet medical or household expenses.
Abdul Halim Majhi, a farmer from Charpenchakola village, told FE that there are at least two hundreds small and medium farms in the village and the farmers have to hand over a fixed quantity of milk in the morning and afternoon. "These cattle traders are taking a large part of the profits. As a result, hundreds of farmers are losing interest in raising cows."
Amad Ali Sheikh of Charsandashia village said cattle traders deduct money from them on various pretexts. Complaining of poor quality of milk and low weight, they reduce the farmers' entitlements. As the price of all types of cow feed has increased in the market, the cost of milk production also increased. In addition, many farmers have gone bankrupt because they are unable to provide milk at the contracted price of Tk 45 to 50.
Many farms are being forced to close down and farmers have been selling cows to return the conditioned investment.
Replying to questions regarding procuring milk from farmers at unfair prices, several cattle traders said seeking anonymity that they are taking risks because they give farmers money in advance. "Although the price of milk is low, the transportation and storage costs are high."
Pabna District Livestock Officer Dr. Md. Zahurul Islam told the FE that the cost of raising cows in the char areas is relatively low for farmers. They collect raw grass from the char for half the year to meet their cow fodder needs. Livestock and dairy development projects are ongoing in various chars of Bera Upazila. However, there is no opportunity for loan assistance from the Department of Livestock.

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