Rural markets: Fuelling the growth of agriculture and rural economy
Wednesday, 20 January 2010
Asif Mahfuz
NGO activities, mainly in the areas of micro credit, capacity building and women empowerment, along with increasing farm yield, have helped evolution of a consumer class in the rural Bangladesh.
Rural markets are the main places where the commodities change hands, the farmers get all the necessary inputs like fertilisers, seed and pesticides, and the small farmers sell their products.
Previously, the rural markets were not developed. So, very few farmers did actually go to the towns to buy hybrid or better seeds. There were only a few shops in rural markets displaying quality farm inputs. But rural markets are now major selling points for hybrid seeds and all kinds of quality inputs.
Some of these rural markets have been developed with the help of the World Bank and LGED. After seeing the increase in trade, land value and variety of products, it can be said that the development of these markets has definitely made a positive impact on trade volume.
According to WB, there were around 8000 rural markets in Bangladesh in 1996. But this number has since risen dramatically with the introduction of hybrid seeds which has increased agricultural production, leading to higher income and improved lifestyle of the rural people. Data from LGED's Upazila-based GIS system gives a figure of 17,121 while a survey, commissioned by DAM in 2000, recorded 16,476 markets.
However, there are many small, often organised informally organised, markets at roadside and in villages that have not been recorded. This is particularly true in the coastal areas and chars where land is emerging from the sea and rivers and new settlements have been developed. For example, in Boyer Char, the LGED GIS system records only three haat/bazaars, while a survey by the Char Development and Settlement Project Phase II has found there 20 small markets.
Similarly, the number of markets in the chars in the northern districts is large but many of these remain unaccounted for. For example, Natuar Para Char is a famous market (haat) in the Sirajgonj belt. It is situated in a char on the river Jamuna, and there is no permanent structure in that whole char area. If the char erodes, which has happened in the last couple of years, the whole market will move to the nearest char. The market is open on two days of a week; traders come early in the morning, in some cases on the previous night, and leave after the market is closed. No one usually stays back. People stay the night in makeshift huts, which are taken away after the market closes the next evening.
Natuar para is one of the major conjunction points on the Jamuna, a river route that connects Jamalpur, Sherpur, Tangail and Sirajgonj. Agricultural products, farm inputs, cattle, household items etc. are sold at the market.
Not only Natuar para but many markets like this will be noticed all along the major rivers. Traders usually favour river routes, which are easier compared to the cost and hazard of road communication.
The mainland markets are equally important. But the requirements for such markets are multifarious. Infrastructure, roads, storage facilities, sheds, etc. are needed for more permanent land-based rural markets.
Many of the rural markets are not recorded by the government or any agency in their surveys. Only the big permanent rural markets are recorded.
According to WB, there are three types of rural markets in Bangladesh: a) primary markets, where mainly the farmers sell commodities to local consumers and local traders, almost 75 per cent of rural markets is of this type; b) local "assembly" markets where farmers and local traders exchange commodities with intermediary traders; and c) the secondary markets where intermediaries trade with big national buyers. The secondary markets are usually situated at the Upazila headquarters.
The small rural markets have given the farmers access to the best quality seeds, inputs, micro nutrients and other products as well. It will not be wrong to say that the growth of agriculture and rural economy in the recent years has been made possible partly because of the contribution of the rural markets.
Rural markets have many problems like unpaved road (in some cases there is not even brick-soled road), lack of shed and absence of necessary infrastructure. LGED has taken a programme to improve rural markets. The Rural Roads and Market Access Component (RRMAC) forms a part of the second phase of the Agricultural Sector Programme in line with the national strategy to reduce poverty. RRMAC considers a good infrastructure a pre-requisite for agricultural growth and supports rural roads and market access. This is not only boosting trade in the markets but also pushing up the land value of the nearby places. The multinationals are also starting to realise the opportunities opened up by rural markets.
(The author is a market coordinator with Winrock International. He can be reached at e-mail: amahfuz@winrockbd.org)
NGO activities, mainly in the areas of micro credit, capacity building and women empowerment, along with increasing farm yield, have helped evolution of a consumer class in the rural Bangladesh.
Rural markets are the main places where the commodities change hands, the farmers get all the necessary inputs like fertilisers, seed and pesticides, and the small farmers sell their products.
Previously, the rural markets were not developed. So, very few farmers did actually go to the towns to buy hybrid or better seeds. There were only a few shops in rural markets displaying quality farm inputs. But rural markets are now major selling points for hybrid seeds and all kinds of quality inputs.
Some of these rural markets have been developed with the help of the World Bank and LGED. After seeing the increase in trade, land value and variety of products, it can be said that the development of these markets has definitely made a positive impact on trade volume.
According to WB, there were around 8000 rural markets in Bangladesh in 1996. But this number has since risen dramatically with the introduction of hybrid seeds which has increased agricultural production, leading to higher income and improved lifestyle of the rural people. Data from LGED's Upazila-based GIS system gives a figure of 17,121 while a survey, commissioned by DAM in 2000, recorded 16,476 markets.
However, there are many small, often organised informally organised, markets at roadside and in villages that have not been recorded. This is particularly true in the coastal areas and chars where land is emerging from the sea and rivers and new settlements have been developed. For example, in Boyer Char, the LGED GIS system records only three haat/bazaars, while a survey by the Char Development and Settlement Project Phase II has found there 20 small markets.
Similarly, the number of markets in the chars in the northern districts is large but many of these remain unaccounted for. For example, Natuar Para Char is a famous market (haat) in the Sirajgonj belt. It is situated in a char on the river Jamuna, and there is no permanent structure in that whole char area. If the char erodes, which has happened in the last couple of years, the whole market will move to the nearest char. The market is open on two days of a week; traders come early in the morning, in some cases on the previous night, and leave after the market is closed. No one usually stays back. People stay the night in makeshift huts, which are taken away after the market closes the next evening.
Natuar para is one of the major conjunction points on the Jamuna, a river route that connects Jamalpur, Sherpur, Tangail and Sirajgonj. Agricultural products, farm inputs, cattle, household items etc. are sold at the market.
Not only Natuar para but many markets like this will be noticed all along the major rivers. Traders usually favour river routes, which are easier compared to the cost and hazard of road communication.
The mainland markets are equally important. But the requirements for such markets are multifarious. Infrastructure, roads, storage facilities, sheds, etc. are needed for more permanent land-based rural markets.
Many of the rural markets are not recorded by the government or any agency in their surveys. Only the big permanent rural markets are recorded.
According to WB, there are three types of rural markets in Bangladesh: a) primary markets, where mainly the farmers sell commodities to local consumers and local traders, almost 75 per cent of rural markets is of this type; b) local "assembly" markets where farmers and local traders exchange commodities with intermediary traders; and c) the secondary markets where intermediaries trade with big national buyers. The secondary markets are usually situated at the Upazila headquarters.
The small rural markets have given the farmers access to the best quality seeds, inputs, micro nutrients and other products as well. It will not be wrong to say that the growth of agriculture and rural economy in the recent years has been made possible partly because of the contribution of the rural markets.
Rural markets have many problems like unpaved road (in some cases there is not even brick-soled road), lack of shed and absence of necessary infrastructure. LGED has taken a programme to improve rural markets. The Rural Roads and Market Access Component (RRMAC) forms a part of the second phase of the Agricultural Sector Programme in line with the national strategy to reduce poverty. RRMAC considers a good infrastructure a pre-requisite for agricultural growth and supports rural roads and market access. This is not only boosting trade in the markets but also pushing up the land value of the nearby places. The multinationals are also starting to realise the opportunities opened up by rural markets.
(The author is a market coordinator with Winrock International. He can be reached at e-mail: amahfuz@winrockbd.org)