inception report · like micronutrients, fungicides, hormones, fertilizer, compost and pesticides....

INCEPTION REPORT

MYMENSINGH VEGETABLE SUB-SECTOR

Inception Report

On Mymensingh Vegetable Sub-sector

Prepared for:

Development Wheel

Prepared by:

GMark Consulting Limited

December 2007

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Table of Contents

Executive Summery ....................................................................................................................5 Definitions ......................................................................................................................................7 Acronyms ......................................................................................................................................9

1.0 INTRODUCTION........................................................................................................ 10 1.1 Background .................................................................................................................................10 1.2 Objectives ....................................................................................................................................10 1.3 Methodology ...............................................................................................................................11

1.3.1 Team Orientation ............................................................................................................11 1.3.2 Scoping Visit to the Field ...............................................................................................11 1.3.3 Secondary Literature Review.......................................................................................13 1.3.4 Study Tools Development .............................................................................................13 1.3.5 Field research...................................................................................................................13 1.3.6 Analysis and report preparation .................................................................................15 1.3.7 Validation workshop ......................................................................................................15 1.3.8 Project promotion workshop........................................................................................16

1.4 Justification of Selecting Mymensingh vegetable Sub-sector.......................................16 1.4.1 Selected top potential sub-sectors............................................................................16 1.4.2 Favorable environment for vegetable production...............................................17 1.4.3 Outreach...........................................................................................................................17 1.4.4 High growth potential ....................................................................................................17 1.4.5 Increased Income ..........................................................................................................18 1.4.6 More employment..........................................................................................................18 1.4.7 Strong presence of Marginal farmers and women ...............................................18 1.4.8 Nutritional Viewpoint......................................................................................................18 1.4.9 Optimum utilization of land ..........................................................................................19

1.5 Limitations .....................................................................................................................................19

2.0 VEGETABLE INDUSTRY IN BANGLADESH ...................................................... 20 2.1 Productions, Productivity and Growth .................................................................................20 2.2 Horizontal Expansion..................................................................................................................20 2.3 Leading Vegetable Growing Regions..................................................................................21 2.4 Demand-Supply..........................................................................................................................22 2.5 Export .............................................................................................................................................22 2.6 Comparative productivity with other Asian countries .....................................................22

3.0 MYMENSINGH VEGETABLE SUB-SECTOR ...................................................... 23 3.1 Background .................................................................................................................................23 3.2 Present Market Scenario ..........................................................................................................24

3.2.1 Production and growth .................................................................................................24 3.2.2 Vegetable land and ownership .................................................................................24 3.2.3 Vegetable varieties and seasons ...............................................................................25 3.2.4 Market Size and Demand-Supply...............................................................................25 3.2.5 Relation with Netrokona ...............................................................................................25

3.3 Current Practices........................................................................................................................26 3.3.1 Seed Usage and Source of Seeds..............................................................................26 3.3.2 Fertilizer and micronutrient usage ..............................................................................26 3.3.3 Pesticides Usage .............................................................................................................27 3.3.4 Cultivation Technology .................................................................................................27

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3.3.5 Marketing channel .........................................................................................................27 3.3.6 Cropping Pattern ............................................................................................................28 3.3.7 Profitability in compared to rice and jute production..........................................28 3.3.8 Comparison of Land productivity with leading vegetable growing regions.29

3.4 Operating Mechanism and Other Issues .............................................................................29 3.4.1 Driving Dynamics.............................................................................................................29 3.4.2 Influence of different actors ........................................................................................30 3.4.3 Critical Issues ....................................................................................................................30

3.5 Actors in the Sub-sector............................................................................................................31 3.6 Cost Benefit Analysis of the Actors in the Sub-sector .......................................................32 3.7 Sub-sector Map...........................................................................................................................36 3.8 Cross-cutting Issues ....................................................................................................................38 3.9 Competitiveness Analysis (SWOT) ..........................................................................................38 3.10 Constraints..................................................................................................................................39 3.11 Opportunities .............................................................................................................................45

4.0 SERVICE MARKET ASSESSMENT ....................................................................... 49 4.1 Services in Vegetables Sub-sector in Mymensingh...........................................................50

4.1.1 The Farmers.......................................................................................................................50 4.1.2 Input Sellers .......................................................................................................................54

4.2 Supply-Side – The Service Providers.......................................................................................55 4.2.1 Input Sellers .......................................................................................................................55 4.2.2 Input Companies ............................................................................................................56 4.2.3 Tractor owner, Irrigation equipment owner, Sprayer, Arotders..........................57 4.2.4 SRDI Mymensingh............................................................................................................57 4.2.5 Formal and Informal Money Lenders ........................................................................57 4.2.6 Department of Agriculture Extension (DAE) ............................................................58 4.2.7 Horticulture Centre: ........................................................................................................58 4.2.8 BADC ..................................................................................................................................59 4.2.9 NGOs ..................................................................................................................................59 4.2.10 Lead Farmers .................................................................................................................59

4.3 Conclusion....................................................................................................................................59

5.0 POLICY RELATED ISSUES..................................................................................... 61 5.1 APB, 2006 and Review of Agricultural Policies and Documents ...................................61

5.1.1 National Agriculture Policy (NAP)...............................................................................64 5.1.2 New Agricultural Extension Policy (NAEP) ................................................................65 5.1.3 DAE Strategic Plan 1999- 2002.....................................................................................66 5.1.4 DAE - Agricultural Extension Manual .........................................................................66 5.1.5 National Seed Policy, 1993 and Seed Rules, 1998 .................................................67 5.1.6 Plan of Action on NAP ...................................................................................................68 5.1.7 Actionable Policy Brief and Resource Implications (APB) ...................................72 5.1.8 National Land Use Policy ..............................................................................................73 5.1.9 National Water Policy ....................................................................................................73 5.1.10 Environment Policy .......................................................................................................74 5.1.11 National Food Policy....................................................................................................74 5.1.12 National Rural Development Policy ........................................................................75 5.2.13 PRSP- Agriculture and Rural Development............................................................75

5.2 Weakness in Policy Formulation .............................................................................................76 5.3 Weakness in Policy Execution .................................................................................................79

6.0 A CASE STUDY .......................................................................................................... 83

7.0 MARKET DEVELOPMENT STRATEGY .............................................................. 85 7.1 Introduction..................................................................................................................................85

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7.2 Working areas..............................................................................................................................85 7.3 Vision ..............................................................................................................................................86 7.4 Strategies ......................................................................................................................................86 7.5 The Intervention Plan .................................................................................................................87

7.5.1 Strategy 1 ..........................................................................................................................87 7.5.2 Strategy 2 ..........................................................................................................................88 7.5.3 Strategy 3 ..........................................................................................................................90 7.5.4 Strategy 4 ..........................................................................................................................90

8.0 CONCLUSION ............................................................................................................ 94

Annexure................................................................................................................................ 95 Key Informant Questionnaire.................................................................................................................96 Questionnaire for Assessing Supply Side of BDS...................................................................................97 Questionnaire for Assessing Demand Side of BDS ................................................................................98 Market Assessment Questionnaire 1 ......................................................................................................99 Market Assessment Questionnaire 2 ....................................................................................................106

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Executive Summery Bangladesh has achieved substantial agricultural growth in last two decades through modernization in agricultural practices. Currently, the country is nearly self-sufficient in cereal foodstuff through continuous rise in productivity and farming area simultaneously. On the other hand, though production has increased considerably, the vegetable supply still lags the total domestic demand, especially in terms of nutritional viewpoint1. At present, vegetable sub-sector contributes approximately 3.7% to the national GDP and cultivated area covers 1.8% of total cropped land. Though vegetable production in the country has increased on average 3.9% per annum from 1995-96 to 2002-03, land productivity declined marginally or remains stagnant throughout this period. Moreover, the productivity remains low compared to other developing countries like China, India, Pakistan and Philippines, which represents potential for further improvement. Mymensingh Vegetables sub-sector emerged as one of the four potential sub-sectors through the sub sector selection process. The agro-climatic characteristics of Mymensingh are favorable for vegetables production both in summer and winter season. Irrigation facility is also widely available throughout the region. Currently vegetable is produced only in 7% of total cultivated land, while about 70% of total land is suitable for vegetable cultivation. Moreover, introducing modern and improved inputs, hybrid varieties and commercial cultivation technologies could increase productivity to a significant scale. In Mymensingh marginal, small and medium farmers principally grow vegetable. Vegetable provides significantly high return on investment opportunity than the popular crops of the area and the production cost of vegetables is very much within the reach of small farmers. There are more than 41 thousand commercial vegetable growers As the other vegetable growing regions, vegetable is initiated through homestead growing but the situation rapidly changed mainly for four consecutive factors: first, decline of jute as cash earning crop, second, various NGO intervention promoting vegetable cultivation and micro-credit program, third, increased demand from Dhaka and fourth, establishment of large industries in Gazipur-Mymensingh Highway which created a large customer base for vegetables

1 Currently, the consumption of vegetable in Bangladesh is reckoned to be 50-70 g/head/day, as against the requirement of 200 g/head/day

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Total vegetable production in Mymensingh was around 246 thousand MT in 2005-06. In Mymensingh, 60% is locally consumed and the rest 40% is exported in various districts – Dhaka, Gazipur, Sylhet, Chittagong, Netrokona, Sherpur - of the country. The major export varieties are brinjal, cucumber, tomato, tarovine, taro, sweet gourd and white gourd. Last two years data shows that total production of vegetable has been increasing by on average 9.05% per annum. But the growth is not even. Out of twelve upazillas, Sadar, Trishal, Fulbaria and Gauripur produce half of total vegetable production. Farmers of Mymensingh use to grow vegetables commercially and for the last few years’ farmers have adopted improved vegetable cultivation techniques but still they have lack of knowledge on use of modern inputs like micronutrients, fungicides, hormones, fertilizer, compost and pesticides. The same way, intensive cultivation techniques are missing i.e. use of hybrid seed, seedbed preparation, crop rotation, inter cropping etc. Vegetable markets of leading vegetable growing upazila are highly influenced by the demand of outside market of Dhaka, Gazipur, Sylhet, Chittagong. Because of higher demand and better price at outside markets, farmers cultivate specific varieties with certain size at specific time of the year. So, the outside traders in terms of price and quantity are defining the timing, variety and size. Analysis of Mymensingh vegetable sub-sector shows that, the increase of land productivity has become marginal in recent years, small and similar product range has decreased the profitability and increased the risk on return, and non-scientific usage of excessive inputs in short run has reduced the profitability and in long run may hamper the sustainability of soil health and thus vegetable production. But since demand and price of vegetables are soaring throughout the country, the total sales price increased dramatically which increased the profitability and fostered the area expansion. However, if these three major trends can be addressed properly and effectively, the productivity and profitability will improve tremendously as well as the risk on return will minimize.

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Definitions Vegetable Sub-sector: Vegetable sub-sector includes all the vegetables that are cropped in Netrokona region. The sub-sector does not include potato. Vegetables are of mostly three types: winter vegetables, summer vegetables and round the year vegetables. Late/early variety vegetables: Modern cultivation techniques have enabled vegetable farmers to shift the cultivation period around two to three months in both directions. For example: the cultivation period of seasonal tomatoes is November to March, while the late variety tomato’s cultivation is two months forward shift with period of January to May. On the other hand, while October to January is the usual cultivation period of cauliflower, the early variety cauliflower is produced in two months earlier from August to November. Though yield of these late/early varieties are less than seasonal times, high price of these varieties ensures the profitability of these farmers. Land Productivity: Land Productivity can be defined as yield in per unit land, like MT/Hectare, by using different level of inputs, such as seed, fertilizer, irrigation, labor & technology. Profitability: Profitability is the ratio of profit and production cost. Both cost and profit are calculated in real terms of that area. Since labor cost and sales value varies widely among regions, profitability is usually different among regions for same level of land productivity. Micronutrients: There are about eight nutrients that are essential for plant growth and health. These are manganese, boron, copper, iron, chlorine, cobalt, molybdenum, and zinc. Some consider sulfur also as macronutrient. Farmers use these nutrients according their deficiency in soils to achieve more yields. Compost: Compost is a fertilizer that is produced through aerobically decomposition of plants, animal wastes, and other organic remnants. In some cases, some artificial components are added to increase its effectiveness. Since compost works as supplier of natural nutrients, stimulator for chemical fertilizers, increases the water contain ability of soil and reduces soil erosion, it is now widely used in agriculture and gardening. Hybrid seeds: Hybrid seeds are produced by artificial cross-pollination of improved varieties. Hybrids usually provide better yield, improved color, and are of more disease resistant. Hybrid is considered as one of the main contributing factors to increase the yield of crops. The improved

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characteristics of hybrid seeds cannot be reproduced through natural pollination. So, new seed must be purchased for each planting.

OP (Open-pollination) seeds: OP seeds are produced by natural cross-pollination between improved varieties. These seeds also provide better yield and good product quality. In some cases, their disease resistance also improves. However, since farmers, can reproduce OP seeds without affecting the improved characteristics, through natural pollination, they carry risk of disease contamination through pollutants in the next year seed.

Soil test: Soil test is the analysis of a soil sample to determine nutrients content (nitrogen, phosphorus and potassium), composition and other characteristics (like pH). Tests are usually performed to measure fertility and indicate deficiencies that need to be remedied.

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Acronyms SLIPP Sustainable livelihood for Poor Producers EC European Commission TX Traidcraft Exchange DEW Development Wheel FGD Focus group discussion MT Metric Ton HYV High yielding verities COGS Cost of Goods Sold NGO Non Government Organization SWOT Strengths, Weakness, Opportunities, Threats DAE Department of Agriculture Extension BRAC Bangladesh Rural Advancement Committee BAU Bangladesh Agriculture University MSME Micro Small Medium Enterprises SRDI Soil Resource Development Institute BADC Bangladesh Agricultural Development Corporation NFP National Food Policy NWP National Water Policy MoA Ministry of Agriculture MoE Ministry of Environment MoFood Ministry of Food NRDP National Rural Development Plan PRSP Poverty Reduction Strategic Paper MDG Millennium Development Goal NAP National Agricultural Policy PoA Plan of Action APB Actionable Policy Brief R & D Research and Development PPM Physical Program Matrix NARS National Agricultural Research System SCA Seed Certification Agency NSB National Seed Board NSP National Seed Policy MoL Ministry of Land NLUP National Land Use Policy ERB Environmentally Responsible Business SRB Socially Responsible Business

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1.0 INTRODUCTION

1.0 INTRODUCTION

1.1 Background Sustainable livelihood for Poor Producers (SLIPP) is a project funded by the European Commission (EC) and implemented by Traidcraft Exchange (TX) and Development Wheel (DEW) with an overall objective to reduce poverty among poor and marginalized communities in Mymensingh and Netrokona Districts by increasing income and employment opportunities. To achieve this objective, TX/DEW adopts Market Development approach where four sub-sectors have already been selected through a scoping visit and field research to those districts to improve their competitiveness. One of the major criteria for the selection of these sub sectors addresses the involvement of poor people in those sub sectors. Mymensingh Vegetables sub-sector emerged as one of the four potential sub-sectors through the sub sector selection process. Now to identify the key constraints and opportunities that are hindering the growth of the sub sector and also barring the poor producers/farmers from actively and effectively taking part in the market system, an in depth sub sector (fishery) study has been conducted. The study has also identified service provisions and made assessment of those services. The project aims to develop/build the capacity of selected service providers so that they can efficiently and effectively render their service to the poor producers/farmers. This sub-sector study, in a way, is the second step to achieve the overall objective of the project.

1.2 Objectives The broad objective of the SLIPP project is to alleviate poverty in Mymensingh and Netrokona. The specific objectives of the sub-sector study for Vegetables in Mymensingh are as follows:

• To clearly understand the value chain of selected sub-sector and identify bottlenecks

• To understand the market dynamics of the sub-sector • To understand the policy environment and to identify policy related

constraints • To clearly understand the business services required to overcome the

bottlenecks and the supply – demand gap analysis in the business service market.

• To identify the constraints and the opportunities within the sub-sector • To design intervention plan for facilitating growth and

competitiveness in the sub-sector

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• To increase the capacity of the staff of the Implementing organization Development Wheel

1.3 Methodology The research applied a mix of the secondary literature review, questionnaire survey, focus group discussion (FGD), key informants interview. The overall research work was completed as outlined below. The overall research was carried out in the following steps as

• Team Orientation • Scoping visit to the field • Secondary literature review and study tools development • Field research • Analysis and report preparation • Validation workshop • Project promotion workshop

The above-mentioned steps are discussed in details—

1.3.1 Team Orientation The very first step was to orient the research team about the study objective and train them accordingly. A consultant conducted a two-day orientation for the study team that covered the sub-sector study methodology, value-chain mapping, identification of constraints and opportunities and also commercially viable solutions and service assessment techniques. Group work and different exercises were adopted in the orientation to let the researchers develop their knowledge on the study approach in a short time. The orientation not only helped the team develop their knowledge on sub-sector study but also facilitate the research process to achieve the objective.

1.3.2 Scoping Visit to the Field The next step was to provide a practical orientation of the study team with the field reality and select two sub-sectors based upon the following criteria depicted in the table below.

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Table 1.1: Selection Criteria for Sub-Sector in The Project Area

Selection Criteria Example of types of information that may be used Outreach - Estimates on the number of enterprises for each

type of firm in the sub-sector (input suppliers, producers, wholesalers, retailer etc.) - Average firm size (employees) for the different types of sub-sector firms - Average salary (monthly wages) for employees in different types of sub-sector firms

Market Demand and growth potential

- Opinions and data from key informants on market trends and sub-sector competitiveness - Information from existing statistics/studies (taking validity of this information into account) - Examples of businesses that have problems meeting demand - Comparisons within the region (based on opinions from key informants of market information)

Significance of Forward and Backward Linkages Among Domestic Market Actors

- Description of the different kinds of transactions that take place among domestic market actors in the sub-sector - An estimate of the volume and number of these transactions between firms -Availability of raw materials

Service provision -Need and gap of business service provisions -Existing service providers and their capacity

Government priority

-Different government project and promotional initiatives -Favorable government policy

Participation of Women

- Estimate of the number of women who are self employed, own businesses or work as employees in the sub-sector (should include participation at all levels of the sub-sector)

Environmental Scanning

- Describe the macro-environmental factors and assess the impact and importance of the various environmental factors.

Technological assessment

- Technology is one of the major areas of intervention that can directly aid in development of the sub-sectors of concern. General importance of and demand for technological intervention will be assessed.

Duplication of work

- Presence of other similar project in the study areas - Extent of similarity

Source: Proposal for Sub sector study

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Based on the above, the results were presented in the following format as in table 3. Furthermore, the rank scale was from 1-5 based on Likert type interval scale to increase the sensitivity in the analysis. This process is described in the later section (Section 1.4). The outcome of the scoping visit was two sub-sectors selected from each area making four sub-sectors altogether. The study team spent three days in Mymensingh and Netrokona and gathered necessary information to select the sub-sectors. Meeting key informants, visiting market places and few informal FGDs enriched the knowledge base of the study team on the pre-selected sub-sectors to narrow them down to four sub-sectors for two areas according to the criteria.

1.3.3 Secondary Literature Review After the selection of the sub-sectors, different secondary literature were collected and reviewed to develop a general idea on the sub-sectors and the study area. Information was collected on fish farming, vegetable cultivation and duck farming in Bangladesh and also in Mymensingh and Netrokona. Books, brochures, leaflets, manuals from public and private sources and files (soft copies) of various formats from internet were collected prior to developing the study tools.

1.3.4 Study Tools Development The tools for field investigation, survey and interview with the key informants were designed. The tools were five questionnaires as

• Key Informant Questionnaire • Demand side Assessment of BDS • Supply side Assessment of BDS • Market Assessment Questionnaire 1 • Market Assessment Questionnaire 2

The sampling framework was also refined and the coordination, quality control mechanism, and data handling procedure were developed and finalized.

1.3.5 Field research The next phase was the field research where the study team investigated the sub-sector dynamics, their constraints and opportunities, commercially viable solutions and their sustainability. Before going to the field, the team was given an orientation on the sampling framework that is the questionnaire for different sub-sector actors. The study team sat together

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each evening to de-brief and share their experiences. This was essential to ensure minimal error and updating. The field research was carried out in the following way. • Stakeholder interview: Primary and secondary stakeholders were

identified and underwent in-depth interviews through pre-designed questionnaire guide. One hundred twenty such interviews were carried out for the Vegetables sub-sector. The stakeholder list covered producers, processors, input suppliers, output market players, service providers from both private and public and different relevant development project personnel. For broadening the knowledge, key informants were identified and underwent in-depth interview.

• Focus Group Discussion: Three FGDs were carried out for vegetables

sub-sector comprising the same group of people – one for producers’ group and two for output market actors. The FGDs helped to streamline the constraints and opportunities in the relevant sub-sector context.

Table 1.2: Number and type of respondents in sub-sector study

Questionnaires Respondents Number

Of Respondents

Types (1 = Structured Interview 2 = In-depth Interview 3 = FGD)

Key Informant

Agriculture Officers, Agriculture Extension Officers, NGO, Lead farmers.

13 1, 2

Demand side Assessment of BDS

Vegetable farmers 33 1

Supply side Assessment of BDS

Input sellers, NGO, Seed &fertilizer company, lead farmers

17 1

Market Assessment Questionnaire 1

Vegetable farmers, Vegetable seedling farmers

28 1,3

Input Sellers 13 1 Arotders 2 1, 3 Paiker 9 1,3

Market Assessment Questionnaire 2

Retailer 5 1 Total - 120 -

Source: Sub-sector Study

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• Visited areas: Of the 12 upazilas of Mymensingh district, the sub-sector study team visited 10 upazilas. The visited upazilas are: Trishal, Fulbaria, Fulpur, Sadar, Gouripur, Goforgaon, Ishwargonj, Muktagaccha, Haluaghat and Dhobaura. Remaining 2 upazilas – Valuka and Nandail – were excluded as vegetable production is very low in those upazilas.

Table 1.3: Log of sub-sector study visit

Date Visited Upazilas

01/09/07 Gouripur

02/09/07 Ishwargonj, Fulpur

03/09/07 Sadar

04/09/07 Trishal

05/09/07 Haluaghat, Dhobaura, Goforgaon

06/09/07 Fulbaria, Muktagaccha


1.3.6 Analysis and report preparation This very phase of research includes analysis of the findings from the field survey and presenting in this very report.

1.3.7 Validation workshop There had been two day-long validation workshops in Mymensingh and Netrokona both attended by stakeholders as different value chain actors as farmers, input (feed, seed, spawn, fingerling, medicine) sellers, wholesalers, and retailers, different local NGO personnel, local GOB personnel, a BAU Professor and officials and staff from both Traidcraft and DEW. Validation workshops, held on November 19, 2007, in Mymensingh covered dissemination and verification of the findings in the fish and vegetable sub-sector. Validation workshops, held on November 20, 2007, in Netrokona covered dissemination and verification of the findings in the duck and vegetable sub-sector. No major changes in the findings were found during the validation workshops. This indicates towards the efficiency of the field survey and analysis.

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1.3.8 Project promotion workshop On November 28, 2007 a workshop namely “Project Promotion and Consultation of Study Findings Workshop” was held at national level in Dhaka. This was attended by different value chain actors of four sub-sectors, national NGO personnel, National GOB personnel, University Professors, consultants, Traidcraft and DEW officials and a representative from European Commission. The workshop was aimed at sharing the findings to the audience, identifying deviations of the findings, if there would be any, and seeking any constructive suggestion regarding the implementation of the project. 1.4 Justification of Selecting Mymensingh vegetable Sub-sector

1.4.1 Selected top potential sub-sectors The sub-sector (Vegetable) study in Mymensingh was followed by the scoping visit, which had the objective of selecting two sub-sectors from the district. Major selection criteria were number of MSEs, market demand and growth potential, service provision, government priority, duplication of work and significant forward and backward linkages. Fish and vegetable farming came out to be the first and second respectively among all the considered sub-sectors.

Table 1.4: Weighted score of selected sub-sectors in Netrokona

Fish Vegetable Sl. Sub-Sector Criteria

Weight (%) Score

(1-5) Weighted

Score Score (1-5)

Weighted Score

1 No. of MSEs 20 5 100 5 100

2 Market Demand & Growth Potential 20 5 100 5 100

3 Significance of forward-backward linkages

15 4 60 5 75

4 Service provision 10 5 50 5 505 Government Priority 10 5 50 4 40

6 Participation of women 5 3 15 4 20

7 Environmental issues 5 4 20 4 208 Technological issues 5 5 25 5 259 Duplication of work 10 5 50 3 30

Total 470 460Source: Scoping Study report

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1.4.2 Favorable environment for vegetable production Most of Mymensingh lies within Brahmaputra flood plain region (Agro-ecological zone 8 and 9), which is considered as fertile and favorable for vegetable cultivation. Soil type of this region is chiefly Sandy-loamy to clay-loamy. The agro-climatic characteristics are also favorable for vegetables production both in summer and winter season. Irrigation facility is also widely available throughout the region.

1.4.3 Outreach In Mymensingh, the marginal, small and medium farmers principally grow vegetable. There are more than 41 thousand commercial vegetable growers, which is 13.3% of total farmers. Among them around 60% farmers grow vegetable both in summer and winter season. Beside these commercial growers, vegetables are grown homestead area (adds significant amount in household income). If non-commercial vegetable growers were included, the total number of vegetable growers would reach to around 60 thousand.

1.4.4 High growth potential Mymensingh have high growth potential in both production and productivity in vegetable cultivation Horizontal For vegetable cultivation, high and medium high land is most suitable. Besides, some innovative and lead farmers are transforming their medium low land into vegetable field pursuing the trench method. Based on the findings of sub-sector study and also from the soil characteristics and land topography statistics of Mymensingh, about 70% of total land is suitable for vegetable cultivation, while currently vegetable is produced only in 7% of total cultivated land2. Vertical The current average yield per hector of vegetable in Mymensingh is much lower than the leading vegetable growing regions – Comilla, Jessore and Bogra. As the environmental and ecological characteristic of Mymensingh is suitable for vegetable cultivation, introducing modern and improved inputs, hybrid varieties and commercial cultivation technologies could increase productivity to a significant scale.

2 Department of Agricultural Extension

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1.4.5 Increased Income Vegetable provides significantly high return on investment opportunity than the popular crops of that area - rice, jute, wheat, mustard, and jute. And the production cost of vegetables is very much within the reach of small farmers. Another significant difference between vegetables and cereal crops is regular cash flow occurs only for vegetable production. These signify that if modern and commercial practice in vegetable cultivation could be incorporated, the income of poor farmers will rise significantly

1.4.6 More employment Vegetable production requires intensive farm management, which is almost 1.5 times than rice.3 The sub-sector study found that the ratio of self and hired labor in vegetable cultivation is around 40:60. Engage of other family members in farm management is negligible for large vegetable growers but considerable for small vegetable growers. So, as the farm size increases, the vegetable farmers become more dependent of hired labor. This represents more employment generation for day laborers throughout the region.

1.4.7 Strong presence of Marginal farmers and women The sub-sector study has identified large number of marginal farmers and women in Sadar, Gauripur, Ishorgonj, Fulbaria, Phulpur and Muktagaccha are engaged in vegetable cultivation. The major motivation is higher profit in vegetable. They use to take land on lease for vegetable cultivation. As the vegetable cultivation is labor intensive, women are favoured because of low wage as hired labor in the vegetable field.

1.4.8 Nutritional Viewpoint Vegetable is well known for its high mineral and vitamin contents. Nutritionists and physicians, around the world, are increasingly emphasizing to increase the share of vegetable in food intake to ensure healthy living. Fruits, which also contain high mineral and vitamins, are believed as the only alternative of vegetables. But since fruits are very costly and are available in short duration in specific seasons, vegetable remains the best option for vitamins and minerals to more than 95% people of Bangladesh. And for poor, vegetable is the only source of vitamins and minerals. So, Bangladesh requires significant increase of vegetable production to meet the nutritional requirement of its vast population.

3 See table 2.2 for per acre labor requirement of various crops

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1.4.9 Optimum utilization of land Some vegetable varieties’ season and production time fit well within the cropping of consecutive two crops. So these vegetables can be introduced without obstructing the current cropping pattern. Also the time duration of vegetable cultivation provides pragmatic opportunity to increase the crop cycle from 2 to 3 to many areas. Very few farmers in the region are now exploiting this opportunity, increased utilization of land through vegetable production, and thus incurring large profit. As these opportunities are financially viable, significant growth opportunity remains for the entire region through exploiting this opportunity. 1.5 Limitations Some limitations impede this report to be one of the finest ones. Time, manpower and money are the ever-scarce resources that should not be considered as limitations. Nonetheless these resources to some extent shape up the quality of the sub-sector study. However, they were very well managed. The limitations that affected the study are – • Unavailability of sufficient secondary information • Communication blockade due to road damage and flood • Travel time increased during the study as the fish farmers locate in

clusters throughout the district. • Though the sample was taken from all over the district, its size was too

small with respect to the total number of the actors. • The study was more of qualitative than quantitative which emphasizes

more on understanding the market system than focusing on numbers like ratio of sample size and population. This instigated to use the judgmental view of analysis.

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2.0 VEGETABLE INDUSTRY IN BANGLADESH

2.0 VEGETABLE INDUSTRY IN BANGLADESH

2.1 Productions, Productivity and Growth At present, vegetable sub-sector contributes approximately 3.7% to the national GDP. In 2002-03, total vegetable production was 1625 thousand MT and vegetable cultivated area was 253 thousand hectares, which is 1.8% of total cropped land. The following vegetable production statistical table reveals that vegetable production in the country has increased on average 3.9% per annum from 1995-96 to 2002-03.

Table 2.1: National vegetable production

Year Total cropped

Area (in Thousand Ha)

Vegetable cropped Area (in

Thousand Ha)

Vegetable area as %

of Total cropped

area

Production (in Thousand

MT)

Yield (MT per

Ha)

1995-96 13498 191 1.41 1244 6.51 1997-98 14053 200 1.43 1307 6.51 1999-00 14364 246 1.72 1559 6.32 2001-02 14008 248 1.78 1567 6.29 2002-03 14166 253 1.79 1625 6.42

Source: Statistical Bulletin of Bangladesh, 2004 If we scrutinize the land productivity, it tells a depressing story - land productivity declined marginally or remains stagnant throughout this 8-year period. While production per hectare of vegetable was 6.51 MT/Ha in 1995-96, in recent years, like 2002-03, it is 6.42 MT/Ha. However, this land productivity may not represent the scenario correctly since the change in composition of vegetable varieties in total production might have changed the total production and thus average land productivity calculations. Therefore, we need to analyze the production, land productivity and area growth separately for specific areas.

2.2 Horizontal Expansion Cropped area for vegetable has increased on average 4.1% per annum in the same period (from 1995-96 to 2002-03), while total cropped area has experienced only 0.7% per annum growth rate in that period. Why this high

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growth for vegetables? According to Shahabuddin and Dorosh4, the basic reason is vegetables provide higher net financial return than HYV rice and other cereals. And price growth of vegetables was higher than other cereal crops in last decade that has ensured the net return in vegetables to further increase. So, vegetables5 have shifted into favorable position to the farmers in compared to cereals, where soil and ecological condition favors vegetable cultivation. Why vegetables? The proposition that vegetable cultivation provides high return possibility than other crops is depicted in table 2.2, using the statistics of Department of Agriculture. The table represents that net return in vegetables is higher than both jute and HYV rice. However in achieving this high return, vegetable farmers required to provide more labor than HYV rice and Jute, 33.9% and 51.5% respectively. So where labor price is high, return in vegetable declines substantially. In addition to that more risk is associated in vegetable production than cereals, which is found by the World Vegetable Center in a study on Bangladesh.

Table 2.2: Comparable scenario of HYV rice, Jute and Vegetables (per acre)

Rice Jute Vegetables Initial investment (in Taka) 18000 15000 17500

Labor intensity (man days per yield)

112 99 150

Profitability 1.44 1.53 1.77

Source: Department of Agriculture, 2003 2.3 Leading Vegetable Growing Regions At present, the leading vegetable producing districts of Bangladesh are Comilla, Jessore, Bogra, greater Dhaka (Manikgonj, Savar and Norshingdi), Rangpur, Dinajpur etc. These districts produce almost similar varieties, but the land productivity of varieties differs considerably among them. The two primary reasons for this discrepancy are - quality in farm management and usage of modern inputs. Currently Comilla and Jessore are the leaders in Bangladesh, both in terms of total production and land productivity. However, proximity with Dhaka ensures greater return for Comilla, Manikgonj, Savar and Norshingdi. Vegetable exporters also source most of their vegetables from these four regions.

4 Shahabuddin, Q. and P. Dorosh, 2001, “Comparative advantage in Bangladesh Crop Production”, International Food Policy Research Institute. 5 The other two crops that possess almost similar high return level like vegetables are: potatoes and onion.

21

2.4 Demand-Supply Though vegetable production has increased considerably, the supply still lags the total domestic demand, especially in terms of nutritional viewpoint. Currently, the consumption of vegetable in Bangladesh is reckoned to be 50-70 g/head/day, as against the requirement of 200 g/head/day from nutritional point of view6. This represents that to achieve ideal vegetable intake for our citizen, we had to triple the current vegetable production. 2.5 Export Bangladesh exports vegetables in middle-east countries, UK and Italy to cater only the ethnic market. The export growth rate, in terms of value, was on average 18.32% per annum in 1997 to 2005 period. According to a KATALYST report, currently 288 companies and about 200 thousand people are engaged in vegetable export. Since exporters lack the certification of quality processing, they are unable to supply for supermarkets. However BRAC, Euroasia, Golden Harvest, Marine etc have started to invest in modern infrastructures and hygienic processing techniques eyeing to penetrate in the EU supermarkets. 2.6 Comparative productivity with other Asian countries Table 2.3 depicts the yield per hectare of four vegetables among five Asian countries including India and Pakistan. The table reveals that China possesses the highest land productivity while performance of Bangladesh is the lowest. Even the land productivity of India and Pakistan are almost double compared to Bangladesh. Since the agro-climatic characteristics of India and Pakistan are quite similar with Bangladesh, the higher land productivity of those two countries portrays that significant potential exists for Bangladesh to increase its land productivity and thus total production.

Table 2.3: Land productivity for selected vegetables, 2004 (China = 100) Country Cabbages Cucumbers and

gherkins Squash and

gourds Tomatoes

China 100 100 100 100 India 110 39 52 58 Pakistan 70 75 56 42 Philippines 57 24 47 37 Bangladesh 52 25 40 27

Source: FAO7

6 Akmal Hossain, 2004. National Case study on environmental requirement in market access/entry & export competitiveness in horticulture in Bangladesh 7 http://faostat.fao.org/faostat/collections?version=ext&hasbulk=o&subset=agriculture

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3.0 MYMENSINGH VEGETABLE SUB-SECTOR 3.1 Background For centuries, farmers of Mymensingh cultivate jute and rice and were the principal source of farm income. Mymensingh was famous for premium quality jute fiber. By the 1980s jute fiber demand in international as well as local market declined sharply due to introduction of artificial fiber. So, many jute farmers embraced high yielding rice cultivation. But the revenue generates from rice is not good enough for substituting the jute. The next best alternative for the farmers lies with vegetable cultivation as the soil and agro-climatic conditions are highly suitable for vegetable and the return is also higher. In early 1980s a highway directly connecting Mymensingh-Dhaka reduce physical distance to 100 km and transportation cost up to 60%. This new road not only linked farmers of Mymensingh with the market of Dhaka but also initiated industrialization and urbanization in the approach. Thereby it creates an eventual market for the vegetables of Mymensingh.

Box 3.1: About Mymensingh Agriculture

Source: Department of Agricultural Extension

Districts: : Mymensingh (Upazilla: 12 Union: 280 Village: 146 Municipality: 9) Area: 4400sq. Km. (4.5% of Bangladesh Area) Population: 4.8 million (3.78% of total population) Net cultivable land 335918 hector Land under irrigation 201551 hector (60% of cultivable land) Food Production 1431965 MT Food demand 853238 MT Food surplus 412907 MT

3.0 MYMENSINGH VEGETABLE SUB-SECTOR

Vegetables are grown by the marginal and small farmers of Mymensingh, chiefly in homestead areas. At the start of 1980s this homestead version vegetable farming translated in to commercial vegetable venture, mainly for four consecutive factors: first, decline of jute as cash earning crop, second, various NGO intervention promoting vegetable cultivation and micro-credit program, third, increased demand from Dhaka and fourth, establishment of large industries in Gazipur-Mymensingh Highway which created a large customer base for vegetables. Close proximity with Dhaka and Sylhet is one of the major comparative advantages of Mymensingh which also played significant role with the growth process. Besides

23

Mymensingh Agricultural University has also contribute in agro-technology extension though its scientific projects. 3.2 Present Market Scenario 3.2.1 Production and growth Total vegetable production in Mymensingh was around 246 thousand MT in 2005-06. Last two years data shows that total production of vegetable has been increasing by on average 9.05% per annum. Among the upazilas, Sadar, Trishal and Fulbaria in total are producing nearly half of total vegetable production. In terms of productivity, average production of vegetable in Trishal, Fulbaria, Haluaghat and Phulpur are respectively 17.07, 16.99, 14.97 and 14.05 which are higher than the average land productivity of the region.

Figure 3.1: Upazila wise production of vegetable (2005-06)

18%

16%

10%9%9%

8%

6%

6%

5%

5%

5%3%

SadarTrishalFulbariaGauripurPhulpurGaphorgaonValukaMuktagacchaHaluaghatIshorganjNandailDhobaura


3.2.2 Vegetable land and ownership According the Department of Agricultural Statistics, 5.54% (18605 hectare) of the cultivated land is under vegetable cultivation excluding the Char area. Consultation with the experts acknowledged that if char vegetable area is included, the total vegetable area would increase by around 5500 Hectare more. So in total vegetable is cultivated around 7% of the total cultivated land in Mymensingh. The growth trend of last two years in vegetable land increase was around 6.14% per annum. As per vegetable cultivated area, Sadar is leading area followed by Trishal and Phulbaria. As fish cultivation is more profitable than crop cultivation, in Trishal ponds are replacing paddy fields and put the growth of vegetable cultivation in a competition. Interestingly this is an opportunity as cultivation of vegetable in pond bank is increasing.

24

Figure 3.2: Upazila wise Vegetable cultivated area (2005-06)

0

500

1000

1500

2000

2500

3000

3500

4000 SadarTrishalGaphorgaonGauripurPhulpurFulbariaValukaMuktagacchaIshorganjNandailHaluaghatDhobaura


3.2.3 Vegetable varieties and seasons In Mymensingh vegetable is grown throughout the year. However, as per national trend, vegetable production is higher in Rabi season than Kharif. The major vegetable varieties in Rabi season are Tomato, Cabbage, Cauliflower, Radish, Bean, White gourd, Carrot etc. In 2005-06 vegetable production in Rabi season was 138870 MT which is 57% total vegetable production in that year. On the other hand during Kharif season, less land is use for vegetable cultivation and few varieties are grown. Leading vegetable varieties in Kharif are Red amaranth, tarovine, taro, Okra, Borboti etc. Major varieties cultivated in both season are Brinjal, Cucumber, Sweet gourd, bitter gourd etc. The DAE vegetable cultivation statistics reveals that vegetable cultivation is increasing in both the season but in Kharif this growth rate is higher than the Rabi. In Kharif growth rate is 12.2% and in Rabi it is 6.6%.

3.2.4 Market Size and Demand-Supply The sub-sector study revealed that of the 246 thousand MT vegetable produced in Mymensingh, 60% is locally consumed and the rest 40% is exported in various districts – Dhaka, Gazipur, Sylhet, Chittagong, Netrokona, Sherpur - of the country. So, local demand can be estimated as 148 thousand MT. The major export varieties are brinjal, cucumber, tomato, tarovine, taro, sweet gourd and white gourd.

3.2.5 Relation with Netrokona In Kharif, significant amount of vegetable is exported to Netrokona. At that time, two upazilas of Mymensingh: Gouripur and Phulpur exports 70% of

25

their vegetable production to Netrokona. On the other hand, vegetable farmers of purbodhola, an upazila of Netrokona, come to Tarakanda bazaar, a vegetable trade center in Mymensingh, to sell their product in Rabi (winter) season. 3.3 Current Practices 3.3.1 Seed Usage and Source of Seeds Significant part of the vegetable farmers of Mymensingh prefers to use own seeds. They use to keep a portion of their production as seed in next season. They do not have proper idea of seed farming techniques, post-production processing and preservations. They also do not source foundation/breeder seed from BADC. So surely seed produced by them are much inferior quality than BADC or hybrid seeds. Both hybrid and open pollinated (OP) seeds are sold in the market. In general use of OP seeds is greater than the hybrid. There is around 12 national and 5 regional seed companies are working in the market. In the hybrid seed segment, East West contains the highest market share with 45~50%. Other leading companies are AR Malik (13~17%) and Namdhari (10~15%).

Figure 3.3: OP and Hybrid seed usage ratio in several upazilas

0

20

40

60

80

100

120

Sadar

Trisha

l

Gapho

rgaon

Gaurip

ur

Phulpu

r

Fulbaria

Haluagh

at

O.P.Hybrid

Source: sub-sector study

3.3.2 Fertilizer and micronutrient usage The sub sector study revealed excessive usage of fertilizer, around 100% more, by the vegetable farmers throughout the region. Since farmers do not avail soil-testing service, they use fertilizers on the basis of their own experience. Vegetable growers also have a culture of using cow manure in vegetable cultivation.

26

Farmers of the region are recently getting familiar with the use of micronutrients. Of the 6 micronutrients, boron, zinc and magnesium are available in the market. The farmers use micronutrients primarily for hybrid vegetable production.

3.3.3 Pesticides Usage Like fertilizers, farmers use more pesticides in vegetable cultivation. The study has found that farmers currently use on average 50% more pesticides than the prescribed dose. Farmers have stated their dissatisfaction about the effectiveness of pesticides. One of the chief reasons is malpractices by the pesticide sellers; they keep both quality and substandard pesticides but they peruse farmers to take substandard one as sales commission is higher. Also, there are small retailers who sales pesticides in small amount by breaking the packets. This practice reduces the effectiveness of the pesticides. In total, 30~35 pesticides companies market their product in Mymensingh. Pesticides of well-known companies like, Syngenta, ACI, Auto equipment, Bayer and National Agricare are mostly prevalent among large and lead farmers.

3.3.4 Cultivation Technology Most farmers of this region are filmier with the vegetable cultivation on average for 5 years. Still they mostly cultivate in traditional way but they have improved somewhat through trial and error process. Most of the learning leads to risk minimization rather than improve productivity. The major change happening is increasing trend of hybrid seed usage. However, this is particularly true for okra, cucumber, tomato, bitter gourd and in small scale in brinjal. Paradoxically these farmers still follow the traditional method for hybrids. Interestingly there are farmers in char areas who cultivate cucumber in low lands during rainy season by following the trench method. Some of them also started cultivating fish in the trench water. This initiated in the area not more than 3 years. The sub-sector study did not find any case where farmers using PGR for enhancing the plant growth and thus productivity, while this practice is common in the leading vegetable growing areas of Bangladesh.

3.3.5 Marketing channel The marketing channel of Mymensingh vegetable sub-sector differs widely among regions. In the regions closer to Dhaka, farmers mostly sell vegetables in physical markets. The outside traders buy from them and export it to Dhaka and Gazipur. In other regions, paikars mostly buy from the farmers at union and upazila level physical markets. Then they transport it to district physical market from where outside traders of Chittagong, Sylhet and Netrokona buy from them. Sometimes the arots of district physical market buy from the paikars and export it to neighboring districts.

27

3.3.6 Cropping Pattern Table 3.1 depicts the popular cropping patterns related to vegetables and also the areas which follow them.

Table 3.1: Vegetable related cropping pattern in Mymensingh

Cropping pattern Major following area Land use (in hectare)

Wheat – Vegetable – Ropa Amon

Gauripur, Phulpur and Haluaghat 1255

Potato –Vegetable – Ropa Amon

Fulbaria and Nandail 725

Vegetable – Aus – Ropa Amon

Sadar, Muktagaccha, Trishal, Gaphorgaon, Nandail,

Ishorganj and Haluaghat 9762

Vegetable - Vegetable- Vegetable

Trishal, Valuka, Phulpur, Haluaghat and Dhobaura 6530

Vegetable – Vegetable – Ropa Amon

Fulbaria, Trishal, Muktagaccha, Valuka,

Nandail, Ishorganj, Phulpur and Haluaghat

15041

Source: Sub-sector study

3.3.7 Profitability in compared to rice and jute production

The comparison of profitability of vegetables with rice and Jute varies depending on season. In Kahrif season, on average vegetable is more than 4 times profitable than rice (Aman) cultivation and around 2 times profitable than Jute. On the other hand vegetable is around 2 times profitable than rice (boro) in rabi season. This comparison is based on hybrid rice production.

Table 3.2: Comparative cost and profit picture of vegetable and rice production (per 10 decimal)

Kharif Rabi Aman Vegetables Boro Vegetables Production Cost (in taka) 860 3,100 1,360 2,400 Sales value(in taka) 2,800 7,900 4,800 8,500 Profit (in taka) 1,940 4,800 3,440 6,100 Profitability (in compared to rice) 2.47 1.77

Source: Sub-sector study

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3.3.8 Comparison of Land productivity with leading vegetable growing regions Table 3.3 presents the comparative picture of land productivity per hectare of major eight vegetables of Bangladesh in Mymensingh with other leading vegetable growing regions. This statistics shows that, though Mymensingh has some comparative advantage (i.e. soil, agro-climate, proximity with Dhaka) they remain in low productive than major vegetable growing areas. In other way it says there is ample scope to increase productivity in the area. The only exception is okra where Mymensingh emerges as the leading productive region among all these considered districts.

Table 3.3: Yield (in MT/Hectare) comparison with leading vegetable regions

Season Vegetables Dinajpur Jessore Bogra Manikgonj Mymensingh Comilla

Okra 9 9 3 15 16 12 Summer Sweet Gourd 19 27 20 15 25 30

Tomato 31 30 28 20 13 28 Cabbage 31 45 42 45 25 59

Cauliflower 22 23 23 20 15 37 Winter

Radish 33 40 37 30 24 21 Brinjal 22 38 40 30 15 23 All Round

Year Cucumber 10 15 12 10 9 25 Average 22 28 26 23 18 29

Source: District Agricultural Extension of relevant districts

3.4 Operating Mechanism and Other Issues

3.4.1 Driving Dynamics Vegetable production in Mymensingh varies from upaziala to upazilla and also through varieties. Although mostly the market is buyer driven but sometimes and in case of some vegetables it becomes sellers driven. In Mymensingh, vegetable cultivation was initiated through small scale and focusing local market and on the basis of the convenience of the grower to offset loss from Jute. But as soon as it gets linked with wider market, farmers reacted quickly to keep harmony with the market. Farmers of large vegetable growing upazillas are highly conscious about the demand of outside market (Dhaka, Gazipur, Sylhet, Chittagong) regarding the vegetable varieties. Because of higher demand and better price at outside markets, they cultivate specific varieties with certain size at specific time of the year. So, the timing, variety and size are being defined by the outside

29

traders in terms of price and quantity. In addition to the vegetable varieties, the demand also changed the cropping pattern. For instance, hybrid seed is used in okra, cucumber, tomato, bitter gourd and in small scale in brinjal cultivation and vegetable cultivation growth rate is higher in kharif than Rabi. On the other hand in some pocket areas, farmers are aloof from the major flow. The market is producer driven, farmers chiefly cultivate vegetables that they are familiar with and since local market does not significantly differentiate in price among the varieties of any vegetables, farmers select varieties considering less risk and familiarity.

3.4.2 Influence of different actors Analyzing the influence and power of different actors on defining key features and characteristics of the value chain reveals that the actors play different important role in the process. In the market, a great number of input selling companies (seed, fertilizer, chemical and pesticides) are engaged through their distribution channel. They possess much higher potentiality through improved technology promotion and new variety introduction but they are not playing enough roles in the value chain. Outside traders play a decisive role regarding the varieties to be produced, size and time to cultivate. But only the improved and risk taking vegetable growers participate in this segment and they also have some power on the pricing which are materialized with higher profit margin. NGOs also have certain power among their beneficiaries as they disseminate technology and finance among the farmers.

3.4.3 Critical Issues Vegetable cultivation of Mymensingh is privileged with the suitable climate and proximity to Dhaka and these led the sector to flourish. But the growth was not even. Out of twelve upazillas, Sadar, Trishal, Fulbaria and Gauripur produce half of the yearly productions. The annual productivity data shows, other than the higher producing upazillas there are few other upazillas e.g. Haluaghat, Phulpur Dhobaura and Nandail which have potential for increased production through horizontal expansion.

30

Figure 3.4: land Productivity (MT/hectare)

0.002.004.006.008.00

10.0012.0014.0016.0018.00

Trisha

l

Fulbaria

Haluagh

at

Phulpu

r

Gaurip

ur

Dhobau

ra

Nandail

Sadar

Ishorga

nj

Muktag

acch

a

Valuka

Gapho

rgaon


On the other hand, there is opportunity of increasing the productivity through introducing the high yielding verities (HYV) throughout the district. At present, HYV are being used for only few varieties. Proximity to Dhaka has not provided and edge to only to the vegetables but to other agricultural sector. Fish cultivation is rapidly popularized in Valuka and Trishal and limiting the cultivation of other crops at rate of 10% per annum. Ironically, vegetable cultivation in the bank of ponds could be a new dimension for the sector. 3.5 Actors in the Sub-sector Input Suppliers (seed, pesticides, micronutrients and fertilizer) There are around 60 seed retailers, 120 mobile seed sellers, 150 pesticides and micronutrients sellers and 200 fertilizer sellers in Mymensingh who are doing business in this sub-sector. Most of the mobile seed sellers purchase seed from Mymensingh Sadar. Numerous examples of selling both seed and pesticides by a retailer prevail throughout the region. For them, seed related inputs account less than 20% of their total business. Profitability Input suppliers on average receive around 10-15% commission on the sales value by the companies. And, in case of low quality inputs the commission is much higher, sometimes as much as 40%. For seed retailers, if scarcity arises in the market, they charge around 15-20% more prices from customers. Vegetable Farmers As mentioned earlier, there are more than 41 thousand commercial vegetable growers in Mymensingh. An overwhelming number of them, around 60%, cultivate vegetables both in summer and winter.

31

Of the total vegetable growers, the percentage of marginal, small, medium and large vegetable growers are 54, 17, 24 and 5 respectively. This has been calculated based on total vegetable cropped area of that farmer. The average cropped area of marginal, small, medium and large are <30 decimal, 31-40 decimal, 41-70 decimal and >70 decimal respectively. Trader (paikar /bapari/ arotdar) Three types of traders can be distinguished in the sub-sector. Paikars buy vegetables directly from farmers and/or act as a commissioning agent for big traders/ baparis, who buy vegetables in bulk. If baparis do not buy from paikars, they do so from arotdars in the bazaar. Arotdars keep a space in the market where farmers or paikars can store their vegetable for sale to baparis or local retailers. Sometimes arotdars themselves export vegetables in other district markets. Around 400 traders are operating in the vegetable sub-sector in Mymensingh. Retailers There are about 2000 retailers of vegetables in Netrokona. 3.6 Cost Benefit Analysis of the Actors in the Sub-sector Vegetables constitute a long list and different vegetable has different profitability and value addition scope. So it is imperative to select a particular vegetable to have a comparative assessment of profitability and value addition at different level of value chain. The cost-benefit analysis for bitter gourd8 at different level of value chain is shown below: Farmer Specifications: crop-bitter gourd, land size-20 decimal, crop period-6 months Item Cost (Tk.) Remarks Calculation Lease value 5000 Tk.

500/decimal/yr 500*20/2

Irrigation 500 Seeds 2250 Hybrid seed Pesticides 1500

Inputs

Fertilizers/micronutrients 1500

8 Bitter gourd covers both Kharif and Rabi season, and it is a moderate level crop in terms of production cost.

32

Labor (self/employed) 11500 Hired labor-Tk. 100/day, 25 man days; self labor through out the cultivation @ 50% of his time i.e. 90 days

Land preparation, Tools/Machineries

1500 Land preparation through tilling

Mancha preparation 2500 Processing No Others 500 Cost of Goods Sold (COGS)

25250

Sales value

32500 Sale at farm-gate Yield= 50 mound @ Tk. 650 on average; 50*650

Yield= 50 mound= 50*40 kg= 2000 kg9

Unit cost= Tk. 25250/2000= Tk. 12.6 Unit selling price= Tk. 32500/2000= Tk. 16.25/kg Faria Item Cost (Tk.) Remarks Calculation Input (bitter gourd) 32500 Same amount

purchased from farmer

Bag 500 For carrying purpose Transportation 500 Van to nearby

bazaar

Labor 200 Loading-unloading Tax in bazaar 150 Commission to Arot 250 @Tk.5 per mound Others 100 Cost of Goods Sold (COGS)

34200

Selling price 38000 Unit cost= Tk. 34200/2000= Tk. 17.1

9 For the comparative analysis, this amount of yield would be considered for all the actors.

33

Unit selling price= Tk. 38000/2000=Tk. 19/kg

34

Wholesaler (exporting to Dhaka) Item Cost (Tk.) Remarks Calculation Input (bitter gourd) 38000 Same amount

purchased from faria in Arot

Jute Bag 680 Basket 85 Transportation 500 Truck to Dhaka Proportionately

calculated Labor 200 Loading-unloading Commission in Dhaka Arot

300 @Tk. 6 per mound

Wastage 1900 5% of total purchase Others 500 Cost of Goods Sold (COGS)

42165

Selling price 50000 Remaining amount= 2000 – (2000*5%) = 1900 kg Unit cost= Tk. 42165/1900= Tk. 22.2 Unit selling price= Tk. 50000/1900 kg = Tk 26.3/kg Retailer (Dhaka) Item Cost (Tk.) Remarks Calculation Input (bitter gourd) 50000 Same amount

purchased from wholesaler

Transportation 650 Van to nearby bazaar

Space rent in Bazaar 250 Proportionate rent only for this amount of bitter gourd

Wastage 2500 5% of total purchase Others 50 Cost of Goods Sold (COGS)

53450

Selling price 63000 Remaining amount= 1900- (1900*5%)= 1805 kg Unit cost= Tk. 53450/1805= Tk. 28.9 Unit selling price= Tk. 63000/1805= Tk. 35/kg

35

Retailer (Local) Item Cost (Tk.) Remarks Calculation Input (bitter gourd) 38000 Same amount

purchased from faria in Arot

Transportation 400 Van to nearby bazaar

Space rent in Bazaar 100 Proportionate rent only for this amount of bitter gourd along with other vegetables

@ Tk. 2 per mound

Cost of Goods Sold (COGS)

38500

Selling price 48000 Unit cost= Tk. 38500/2000 kg =Tk. 19.25/kg Unit selling price= Tk. 48000/2000= Tk. 24/kg

Table 3.4: Profit Margin and Value Addition Value chain actor

Unit selling price/kg

Unit cost/kg

Profit/unit (Tk./kg)

Profit margin (%)

Distribution of value addition

Distribution of profit

Farmer 16.25 12.6 3.65 22% 46.4% 23% Faria 19 17.1 1.9 10% 7.9% 13% Wholesaler (exporting to Dhaka)

26.3 22.2 4.1 15.6% 20.7% 26%

Retailer (Dhaka)

35 28.9 6.1 17.4% 25% 38%


36

3.7 Sub-sector Map The current multifaceted and complex market structure of Mymensingh vegetable market can be represented comprehensively by decomposing the market into major four channels. The channels are selected based on interrelationship among actors, their significance in the process, cultivation characteristics and extent of vertical Integration.

Table 3.5: Characteristics of Channels of Vegetable Sub-sector Channel 1 Channel 2 Channel 3 Channel 4

Channel name

Vegetable cum seed growers Marginal farmers Small farmers Medium and large

farmers

Land Ownership Self Self Self + Tenant Self + Lease

Source of seed Self retained from last year production

Packet seeds from mobile seed sellers

Packet seed from retailers and mobile

seed sellers.

Buy Packet seeds from district

dealers. Quality of seed Low Low Medium to high High Fertilizer usage Medium Medium to high Medium to high High

Pesticide usage High (highly vulnerable to pest because of low

quality seeds)

High (highly vulnerable to pest due to low quality

seed) Medium-high Average

Micronutrient and compost use - - Very few but

insufficient Few but insufficient

Labor intensity Low Low Average High Source of labor Family + hired Family + hired Family + hired Self + hired

Yield Low Low Average High

Immediate Major Buyers Arotdar + Outside Trader Arotdar + Outside Trader Arotdar + Outside

Trader Arotdar + Outside

Trader Retailing Few Yes No No

Profitability Low Low Moderate HighShare in terms of No. of

farmers 25% 39% 10% 26%

36

Box 3.2 Sub-sector Map

Local Market

25 39% 60% 15%

40% 30%

30%

Input Sellers

Vegetable cum seed

grow er

Mobile seed seller Seed Retailer

Medium grow ers

Retailing

Large grow ers

Seed Grow ing

Vegetable Farming

Seed Selling

10%

Trading Intermediaries

Paiker (Local)

Arotdar

Seed Marketing

Marginal Grow ers Small grow ers

Mymensingh based Local Seed Company

Mymensingh vegetable subsector

National Seed Company

Input Sellers (Fertilizer and Pesticides), Service providers

Retailer

Bapari (outsider)

National Market

1 2

4

3

37

3.8 Cross-cutting Issues Women’s involvement Female labourers are hired widely in vegetable production throughout Mymensingh. Majority of them work at weeding, harvesting and grading stage. Besides, there are many female headed commercial vegetable growers among indigenous communities. At early stage, they received sufficient technical as well as financial support from some NGOs. SRB-Socially Responsible Business Women are usually low paid than men for the same job in Mymensingh. Current (summer) wage rates for women are around 50 taka per day while men get 80 taka per day. During peak season (winter) wage rises to 70-80 taka per day for women and 110-120 taka per day for men. ERB-Environmentally Responsible Business There is wide utilization of unsafe chemicals in vegetables which are unsafe for consumers. This practice presents in two step – (i) farmers spray some unauthorized chemicals during cultivation and also just before harvesting, and (ii) traders spray unhygienic chemicals in vegetables to give a fresh look. 3.9 Competitiveness Analysis (SWOT)

Table 3.6: SWOT Analysis

Strengths - Area, land productivity and profitability are increasing. - Hybrid seed usage is increasing - Competitive with the leading vegetable growing areas of the country - Demand is increasing at sufficiently high rate

Weakness - Cost of production is relatively high than rice. - Labour intensive.

Opportunities - Considerable demand-supply gap in summer season. - Introduction of vegetable-fish cultivation using trench method in low lying areas during rainy season. - Price of vegetables is rising more than other crops.

Threats - Price of vegetable is not stable, especially during winter. - Labour price is high.


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3.10 Constraints

Table 3.7: Constraint Matrix Category Constraint Commercially Viable Solutions

(potential) Service Providers

Crop husbandry

Lack of awareness and knowledge about quality seeds among vegetable farmers leads to low yield and pose high risk on return

Access to knowledge on quality seeds • Seed company • Seed retailers • Lead farmers • NGOs • DAE

Inputs Poor distribution channel of seed companies restricts farmers from getting quality and high breed seed in some areas

Access to quality seeds • Seed company • Seed Association • Seed retailers

Crop husbandry

Lack of knowledge of vegetable farmers about appropriate dose of fertilizers (both chemical and compost), micronutrients, pesticides, fungicides and hormones leads to increase production costs, poor farm management that result in lower productivity

Provision of improved knowledge on fertilizer use

• Fertilizer retailers • DAE • NGOs

Crop husbandry

Lack of knowledge of vegetable farmers about disease and pest management results in poor yield

Provision of improved knowledge on disease and pest management

• Pesticides company • Pesticides retailers • DAE • NGOs

Inputs Use of low quality insecticide and pesticide of farmers leads to high production costs resulting low productivity

Access to better quality insecticides and pesticides

• Pesticides company • Pesticides retailers • DAE • NGOs

Crop husbandry

Lack of knowledge and skill of the vegetable seed growers about seed growing techniques, post-production processing and preservation results poor quality seeds

Provision of improved knowledge on seed growing, processing and preservation techniques

• Seed company • Seed retailers • NGOs • DAE

Service provision

Lack of knowledge of farmers on soil conditions appropriate for specific crop leads to low productivity and poor quality of the crop

Provision of soil testing services • SRDI • DAE • Private soil tester (potential)

39

Inputs Unavailability of quality micronutrients leads to stagnant productivity of vegetable farmers

Access to quality micronutrients • Micronutrient company • Micronutrient retailers • DAE • NGOs

Market access Lack of proper packaging and handling both at trader and farmer level results in large amount of wastage

Provision of improved knowledge on packaging and handling

• Large traders • Arotdars • DAM • NGOs

Crop husbandry

Lack of technical knowledge among vegetable farmers on improved cultivation of vegetable leads to lower productivity

Provision of improved cultivation knowledge

• Input company • Input retailers • Lead farmers • DAE • NGOs

Crop husbandry

Lack of knowledge of vegetable farmers about profitable crop cycle results in poor utilization of land resource

Provision of knowledge on profitable cropping pattern

• Input company • Input retailers • Lead farmers • DAE • NGOs

Inputs Insufficient supply of labor during peak season impedes the production resulting low yield or poor quality crops

access to labor service during peak season • Laborers’ groups • Community groups

Finance Lack of access of financial loan from banks leads vegetable farmers to lend money from informal sources with high interest rate result in less profit

Access to financial services • Private banks • Brokers • Trade associations


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Description of the constraints Lack of awareness and knowledge about quality seeds among vegetable farmers leads to low yield and pose high risk on return Quality seed is the prime criteria for increased yield and minimizing risk on return. Vegetable farmers in Mymensingh extensively use poor quality vegetable seeds. Most of the farmers prefer to use homegrown seeds. The study found that about 75% vegetable farmers currently use homegrown seeds or seeds acquiring from neighboring farmers and only 10-20% usage of hybrid seeds in vegetables. Farmers use hybrid seeds for mainly cucumber, bitter gourd, okra, tomato, cauliflower and cabbage but for the rest they use OP seeds. Farmers also buy seeds from the vendors of local market who posses very little knowledge to share about the quality seeds. More than 80% vegetable farmers in the district lack knowledge on different attributes of quality seeds and thus fail to identify quality seeds while using or purchasing. There is also some malpractice among local/national seed companies. They usually market their seeds in hybrid-alike packaging and adulterate seed packets by mixing local seeds. For these reasons, vegetable farmers are failing to obtain expected yield and thus profit and risk on their investment has increased considerably. These interconnected factors have twisted an intricate barrier to the sustainable and rapid growth of vegetable sub-sector in the district. Poor distribution channel of seed companies restricts farmers from getting quality and high breed seed in some areas Though Mymensingh is potential for vegetable cultivation (considering soil type, soil condition and climate), the study found that there are no seed retailers’ shops in some areas in Mymensingh district. In those areas, farmers either go to Mymensingh sadar to purchase packet seeds or purchase poor quality vegetable seeds locally from mobile seed sellers on haat days. As a result, farmers are spending more money of purchasing seeds from distant places or using poor quality seeds which are available locally. Lack of knowledge of vegetable farmers about appropriate dose of fertilizers (both chemical and compost), micronutrients, pesticides, fungicides and hormones leads to increase production costs, poor farm management that result in lower productivity Use of modern inputs like micronutrients, fungicides and even hormones are rarely used, along with chemical fertilizer, and pesticides, among the vegetable farmers of Mymensingh district. Lack of knowledge on appropriate dosage, and correct procedure and timing to apply these inputs are the two major fundamental component of this constraint. Excess usage is not only hampering the soil quality and burdening the vegetable farmers with higher production costs and thus reducing the overall productivity, but also making the vegetables unsafe (due to excess use of

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pesticides) for consumers. The study found that about 80% farmers use 100% more fertilizer (especially urea) and 50-75% more pesticides, insecticides than the ideal requirement. This practice has increased their overall costs of production almost 50-60%. Lack of knowledge of vegetable farmers about disease and pest management results in poor yield Pest and disease are the most affecting elements while vegetable cultivation. Farmers of Mymensingh have very little idea about the identification of right pest and diseases. Most of the farmers do not know effective pest and disease control. Farmers usually depend on input sellers’ advice for controlling disease and pest. But for pest and diseases management, retailers (input sellers) fail to provide any appropriate advice. Thus, the farmers practice their past experience, observing others and consulting resourceful farmers, which in most cases improper. Use of low quality insecticide and pesticide of farmers leads to high production costs resulting low productivity

Almost all farmers in the region have complained about the quality of currently available pesticides in the market. During the study it is found that, retailers are selling low quality and adulterate insecticide, pesticides along with the quality one. Commission of input retailers is significantly higher for low quality pesticides and insecticides. Thus the input retailers always pursue the farmer to buy low quality inputs. Most cases, farmers do not obtain truthful performance of using pesticides and insecticides. In some cases, small retailers sale products by breaking the packets and could not preserve it properly. As a result the quality of the product deteriorates. These malpractices make the vegetable farmers vulnerable to insect infatuation and risk of loss.

Lack of knowledge and skill of the vegetable seed growers about seed growing techniques, post-production processing and preservation results poor quality seeds Vegetable farmers of Mymensingh have a preference on locally grown seeds. Except some vegetables like tomato, cucumber, cabbage and cauliflower, about 75% farmers use their own grown seeds. Some of them buy seeds from neighboring farmers and also from market. Study found that vegetables growers in Mymensingh undoubtedly grow & use low quality seeds and remain in the lower productive level. Steps of seed production where growers have significant deficiency, as identified while interviewing about cultivation method and processing techniques. Seed purification, Isolation Distance, Genetic Purity, Soil and Seed-borne disease, Water Management, Harmful Pesticide, Proper dosage of fertilizer application, Micronutrient usage which are not followed properly. Thereby the quality of seed is not ensured and germination of local seeds is very low.

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On the other hand National and local seed companies source their seeds through contract farming in different regions, but they practice slacking monitoring system with few advices on cultivation techniques. This fails to increase productivity of vegetables in the district. Lack of knowledge of farmers on soil conditions appropriate for specific crop leads to low productivity and poor quality of the crop Over application of chemical fertilizers is one of normal practice of Mymensingh vegetables farmers. Farmers believe excessive uses of chemical fertilizers are beneficial to increase crop production. But they do not consider the necessity of fertilizer dose according to soil condition, land size and crop need. That is why soil condition is degrading over the years. Considering the fact, it is essential to do soil test before application of chemical fertilizers. In Mymensingh about 25% of total farmers are aware about soil test. Only 5-10% farmers know the benefits of soil testing and also the soil test providers. Percentage of farmers whom did soil test is very negligible. In Mymensingh there is no private soil test provider. DAE and SRDI provide soil testing services with subsidized price but which is not available always in due time. Lack of promotional campaign also restricts farmers of knowing about soil testing services. SRDI’s soil testing facility is located in Mymensingh Sadar which is not accessible to all the farmers in Mymensingh district. Unavailability of quality micronutrients leads to stagnant productivity of vegetable farmers According to SRDI report, Mymensingh is one of the most micronutrients lacking districts in Bangladesh. However, most of the farmers are unaware about the benefit and uses of micronutrients. Farmers, who know well about the benefit and usage of micronutrients, are facing difficulty to procure quality micronutrients. During the study, these farmers shared their grief about the quality of micronutrients available in the market. Those who are currently practicing expressed that they use more than 50% than necessary amount due to only bad quality of micronutrients. This increases the input costs but the productivity fails to improve considerably – so the profitability in fact declined. Thus it fails to allure more farmers to use micronutrients. Lack of proper packaging and handling both at trader and farmer level results in large amount of wastage Packaging is one of the most important parts of vegetable transportation. Look, color, freshness and overall image of a vegetable depend on the packaging system. Vegetables are by nature perishable products. So, if they are not treated with care and not transported properly in a suitable packaging mode, the amount of wastage would be high resulting in a loss for the stakeholders. Different vegetables require different packaging. Therefore, a packaging system common to all would be a rare thing to find.

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This lacking widely exists at all levels of harvesting, handling and transportation. They do not know scientific harvesting and handling practices that generally attributes almost 12 hours natural shelf life. Awful packaging techniques during transportation is another basic reason for this wastage. Current wastage ratio of vegetables that are transported to Dhaka, Chittagong and Sylhet is around 10-20%, which is very high. Lack of technical knowledge among vegetable farmers on improved cultivation of vegetable leads to lower productivity Traditionally, farmers of Mymensingh use to grow vegetables commercially but the improved cultivation techniques are missing (i.e. use of hybrid seed, seed bed preparation, crop rotation, cropping pattern etc.). For the last few years farmers have adopted improved vegetable cultivation techniques but still they have lack of knowledge on use of modern inputs like micronutrients, fungicides, hormones, fertilizer, compost and pesticides. The study found that about 80% farmers’ use 100% more chemical fertilizer and 50-75% more pesticides and insecticides than ideal requirement. Most of the farmers do not have idea of crop rotation; as a result they follow the same cropping pattern year after year. More over farmers are found to be less knowledgeable in about insect infatuation and fungus. This affects in two way (i) increased production cost through inappropriate/excessive fertilizer / pesticides use (This practice has increased their cost of production almost (50-60 %) and (ii) low yield and also poor quality vegetables. For example - some farmers have recently abandoned Brinjal and shifted to other varieties due to decreasing yield rate. In most cases Brinjal is cultivated after tomato, which is not scientifically advisable as their root depth and nutrient requirement is almost similar. Thus this practice enabled the degradation of specific soil contents and as a consequence, yield of Brinjal has declined. Lack of knowledge of vegetable farmers about profitable crop cycle results in poor utilization of land resource Generally soil condition, soil type and climatic condition of Mymensingh are suitable for vegetable production. Usually vegetable farmers of the district select vegetable based on only last year’s experience. This makes their decision and crop selection vulnerable, and in most cases they do not reap the benefit. Besides, most of the farmers are unaware of late and early variety vegetables and their cultivation techniques. In some pocket areas, some progressive farmers practice crop-cycle of four crops, two/three of which are vegetables. It is obvious that if farmers, in general, are informed about these opportunities, there is high probability that vegetable production will increase significantly. Insufficient supply of labor during peak season impedes the production resulting low yield or poor quality crops

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Vegetable cultivation is a labor intensive and need regular nursing. Labour intensity in vegetable production is almost double than rice. In both Rabi and kharif, there is shortage of agricultural labor in the area. Thus the rate of labor does increase. In general, a labour cost is about Taka 90 in usual time but in the pick season the rate is Taka 120 per day, where as in greater Rangpur and Dinajpur it is only about Taka 60-80 per day. Managing the whole cultivation process by own not possible for medium to large size farmers. Due to shortage and increased labor cost, small farmers engage their family members especially women and children’s. But they are mostly engaged in harvesting process. Medium and large farmers have to bear additional cost of hiring labor with higher rate. This also affect future expansion plan of vegetables cultivation of growers. Lack of access of financial loan from banks leads vegetable farmers to lend money from informal sources with high interest rate result in less profit Krishi bank and other formal financial institutes have own agricultural loan package for the farmers. In addition of that NGOs are also providing credits to their beneficiaries for income generating activities. But from the farmers point of view, these formal institutes have long and complicated procedures to follow, which do not attract farmers to avail the facility .Farmers are also reluctant to get loans from bank for their poor service. Thus most of the farmers are depended mainly informal sources i.e. local mohajon with high interest rate. That causes poor farmers not getting desire profit and loses interest for growth of vegetables cultivation, though there is huge potentiality of horizontal expansion.

3.11 Opportunities Introduction of early and late vegetable varieties The sub-sector study finds that very few lead farmers in Mymensingh now practice early or late variety vegetables. However this practice remained confine among them while most of the district is suitable for this practice. The chief reason is lack of technology source from which farmers can learn the cultivation technique of early and late varieties. Large numbers of farmers are eager to adopt this technology as profitability is much higher and almost ensured for these varieties. So, early and late variety of few vegetable (Tomato, Bean, Cabbage, Cauliflower) can be introduced in feasible areas which will give farmers higher profit Introduction of new vegetable varieties (both seasonal and exotic) Few vegetables like pointed gourd, ridge gourd, snake gourd, papaya, cabbage, cauliflower etc are not sufficiently produced in this district. These vegetables are regularly imported from other districts (Kustia, Jessore,

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Bogra, and Kishorgonj).This is an opportunity of introducing these vegetables in Mymensingh gradually. Some exotic vegetables like Capsicum, broccoli and mushroom have demand in Dhaka and this could be grown by the local farmers. The agro-climatic and soil characteristics might suit for these varieties. So, careful introduction and market-oriented production may be possible for these exotic varieties in Mymensingh. Expansion of Taro and Taro-vine in other areas The study found that farmers of Ishwargonj and Gouripur produce huge amount of taro and taro-vine. The advantages of growing taro and taro-vine are these vegetables require less irrigation, less management and also less labor intensive. There is a high demand of these particular vegetables in all over Bangladesh and also recently in export market. So there is huge opportunity to introduce improved varieties to cater the high end local market and export market. High potential exists in establishing effective and efficient linkage with high-end markets (supermarket and export) In the urban areas, there is an increasing demand of high quality vegetables in the supermarkets. This units and shops usually purchase vegetables through contract suppliers. The essential high quality vegetables can be grown and also establish direct linkage among the buyers and farmers. A special variety of potato is produced in Mymensingh, which could be exported to other districts and ethnic markets abroad. Currently, the local demand is higher than the supply. Although it caters to a specific consumer group, but could be introduced in the mainstream potato market capitalizing its diversity in terms of taste and size.

Growing vegetables for the agro-processing industry The opportunity exists to promote the industry by intensifying production of an appropriate variety of crops such as tomatoes, cucumbers, potato etc. Agro-processed products such as ketchup, sauce and chips are in demand in both domestic and export markets Introducing right vegetable cultivation planning to avoid the glut in peak season If everyone grows vegetables same variety in same particular time, then there might be a possibility of glut. Therefore, the price may fall down. However, variations on this basic theme that can solve the mismatch of demand and supply ,if farmers plant early, midseason, and late varieties of the same vegetable. In winter, cool-season varieties can be plant followed with a main crop that tolerates summer heat and end the growing season with a fast-maturing, frost-tolerant variety.

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Cultivation of organic vegetables Now a day’s people are getting more and more health conscious. Environment friendly agricultural methods also exist. Especially in urban areas, demands for pesticide and fertilizer free crops are increasing day by day. Thus cultivation of organic vegetables can be introduced in some feasible areas as pilot basis to meet the demand of a specific segment of consumers. Use and availability of compost fertilizer in vegetable cultivation Farmers know the benefits of using natural fertilizers like cow dung. Due to extensive cultivation practice, farmers mostly use chemical fertilizers rather than compost. Real compost fertilizers are not available in the market. Few companies are selling compost, which are not pure at all. Dependency on inorganic material is declining the nutritional quality of soil and production. Thereby, improved techniques of compost making and ensuring its availability will lead to increase vegetables production. Introduction of Seed Sowing Machine Multi row Vegetables Planter used for planting the vegetables seeds can be introduced which will save labor, time & cost of harvesting with increase productivity and reduced losses. Increasing culture of intercropping Intercropping is the simultaneous cultivation of two or more crops on the same field. The advantages of intercropping (farmers point of view) i) Reduces cost in pest and disease management ii) Increased total production and farm profitability in compared to the same crops are grown separately. iii) Quick cash return opportunity. iv) Minimization of risk in profit appropriation, since it is rarely possible to decline the price of two diverse crops simultaneously. From markets point of view – i) increased production will assist to increase income of all actors in the value chain. ii) More employment will be generated in harvesting and sowing. iii) Farmers’ commercial approach and attitude in intensive cultivation and varieties selection will increase. iv) quick cash return will persuade the farmers to invest more and appropriately in better inputs. Intercropping of vegetable like amaranth in potato field, amaranth with radish, red amaranth with radish is already practiced in some areas in Mymensingh. However, these farmers continue this practice as it generates more income. Therefore enough potentiality exists in the district to exploit this intercropping opportunity. Formation of producers’ group/Association Vegetables farmers of Mymensingh do not practice in joint purchasing of inputs and selling of final products. Due to their simplicity, they are always being cheated by different groups. Updated information on quality inputs, cultivation techniques, high value vegetables and high priced markets are

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not always well-known or available to them. Long supply chain also restricts them of getting fair price. Formation of producers’ group in different level (village/Upazilla) could be helpful for the marginal farmers of getting those necessary services, and dig up benefits from the market.

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4.0 SERVICE MARKET ASSESSMENT

4.0 SERVICE MARKET ASSESSMENT

The classical concept of market always implies that the goods or services will be traded according to the demand following the price mechanism. Services however are not always transacted for money especially in the context of rural agriculture. This phenomenon has made the service assessment effort more complex and difficult; since services are often provided as embedded service – free of cost with the product. However, embedded services are extremely important in term of final outcome and act as powerful strings to tie up the relationship among the value chain actors. Various literatures analyzed the types and range of services in agriculture sector and revealed that productivity and income can be raised substantially for all the value chain actors by just improving these services, which are in many instances embedded. Therefore strengthening service market is considered as one of the key issues in developing sector competitiveness. Services in vegetable sub-sector calls for attention as they are very much evident and playing vital roles in the value chain productivity of the vegetable market. The vegetable growers are receiving different services from different actors. The existing services in the whole district are not equally in practice throughout the region, incomplete in terms of leading vegetable regions and weak in quality. The demand and supply situation for different services will be analyzed in the following segments. Dynamics of service market will be analyzed around the value chain actors of the sector, since services need and demand varies from actor to actor; this variability is evident in terms of their nature, availability, optimality and so on so forth. Therefore, in the following segments of the chapter, first of all different services each value chain actors need to grow will be identified and then existing suppliers of these services will be analyzed in terms of their capacity, quality and availability to gauge the efficiency of the service market around the value chain in the sub-sector in consideration.

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4.1 Services in Vegetables Sub-sector in Mymensingh

4.1.1 The Farmers The vegetables farmers need seeds, fertilizers, pesticides and micronutrients and knowledge about their usage, dosage and application method play a very vital role in ensuring higher productivity of their crop. On top of these input farmers need services for land preparation and even for selling their produce. For some of these services farmers pay and some of these services farmers get as embedded services. Services used by the vegetables growers are listed below:

Figure 4.1: Service Market Scenario

Vegetable Retailers

Vegetable Wholesalers

Arotders

Vegetable Farmers

Input Retailers (Seed, Pesticides, Fertilizers)

Irrigation

Sprayer

Tillage

Soil Testing

Packaging and Transportation Department

of Agriculture Extension

4.1.1.1 Land tillage Gradually traditional method of tilling has been replaced by mechanical tillers and number of farmers using such service is increasing. Some of the large farmers themselves own power tiller or tractor. The smaller farmers purchase this service from tractor owners. The price varies depending on seasons and how many times the land will be tilled. The recent oil price hike has increased the price of this service by around 20%.

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4.1.1.2 Irrigation During the sub sector study two modes of availing this service was identified: (i) Farmers form groups and rent irrigation equipment for the entire season. They share the cost of fuel according their land size. This practice is widely common for rice or similar crop variety. (ii) Farmers ask irrigation equipment owner to provide him certain amount of water. The owner himself goes or sends his employee to sink the pump and irrigate the land. Farmers then pay for the service. The second mode is costly but suitable for crops that requires less irrigation like radish, leafy vegetables, cauliflower etc. And the first mode is preferable for those crops which require extensive irrigation like Aurum, potato, tomato etc. 4.1.1.3 Spraying Use of proper insecticide is a critical thing in ensuring proper production of vegetables. All most all the insecticides and pesticides need to be spayed in the field. For spraying the pesticides large farmers use their own spray machine and spray themselves. Comparatively smaller farmers hire sprayers to spray pesticides in vegetable fields. In most cases the sprayers have their own spraying machine. For others, they hire spraying machine from pesticide retailers. There are few cases where farmers take rent the spray machine from the pesticide seller and spray by themselves. The sprayers often not only spray the insecticide they also identify diseases or pests and suggest remedies accordingly. These sprayers are a good source of information regarding usage and dosage of appropriate pesticides or insecticides. Price of this service is either determined by amount of pesticide or insecticides sprayed or on the amount of land covered. 4.1.1.4 Laborers for land preparation, plantation and harvesting Vegetable cultivation is rather a labor intensive production process. Labor is required at different stages of vegetable cultivation- from land preparation to harvesting. In these steps small farmers predominantly use family labors. Larger farmers hire agricultural laborers for the land preparation, plantation and harvesting of vegetables. 4.1.1.5 Soil testing Applying right amount of fertilizer is a crucial thing for increasing productivity and maintaining soil fertility. To apply the right dosage of right fertilizer farmers need to test the soil and some of the farmers are using this service though a new one in the context of our country. SRDI provides fee based soil testing service for the farmers of Mymensingh. The service provides the current nutrient amount in soil and based on the findings prescribes complete fertilization dosage for various crops.

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4.1.1.6 Commissioning In all vegetable markets there are a group of people who call themselves arotdars. They have a space in the market and offer that place to the farmers and paikars to store and sell their vegetables. The traders and retailers buy vegetables from these places. The farmers and paikars are supposed to pay a certain percentage of the sales price to the arotdar. 4.1.1.7 Credit Lack of investment capacity of the farmers constrains farmers from using the appropriate inputs in right quantity. Farmers don’t have access to formal credit system and for inadequate capital farmers tend to economize on the inputs and eventually cannot reap most out of their production. There government institutions which are supposed to provide credit facilities to the farmers though, most of the farmers don’t have access to these facilities and for them timely disbursement of fund is very important. In absence of formal credit facilities farmers are compelled to borrow money from local money lenders at much hire rate and stringent conditionality. 4.1.1.8 Knowledge and Information on appropriate input Along with the inputs farmers need to have the knowledge and information about the right inputs, their dosage and application technique. Field experience suggest that Seed retailers provide service regarding germination, information regarding seed bed preparation, and also vegetable production techniques. Pesticide, Fertilizers and micronutrient retailers give information to the farmers regarding application, disease and fertilizer management of vegetable production. Pesticide and seed companies provide information to their retailers about their products quality and method of use. Very rarely they provide information to the farmers about their products through meeting, demonstration. Contractors/Companies provide mother seeds at free of cost and provide information to farmers about seed cultivation techniques, especially dosage of fertilizers and pesticides schedules. Some contractors or employees of those companies regularly visit farmer field and provide information on better cultivation technique. In some cases, farmers also contact with these supervisors and ask for solution if they face any difficulty. Traders and paikars provide market information i.e. demand of specific vegetable, high value vegetables and high priced markets to the farmers The Department of Agriculture Extension (DAE) assists farmers in embracing modern cultivation technique through extension services. BADC train their

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contract farmers on seed cultivation technique. They also arrange demonstration plots. Seed growers of closer proximity can learn from these demonstration plots. Vegetable farmers get training support on cultivation techniques from the Horticulture centre. There are some NGOs who promote and disseminate knowledge on modern cultivation technique among vegetable growers. 4.1.1.9 Awareness In Mymensingh farmers follow comparatively improved method in cultivating vegetable. They however, extensively use OP variety though they are very willing to cultivate hybrid. Due to their ignorance of identifying the hybrid seed and unavailability, some input sellers sell their seed packet as hybrid which is OP variety and farmers are being cheated. For pesticides about 40% farmers try to buy the better quality (reputed company) ones and in case of micronutrients the percentage is about 10%. Farmers (about 60%) buy the non-quality pesticides due to unawareness and also due to unavailability of quality ones. Farmers are conscious about the quality of all inputs but poor knowledge on identifying the right one and push sell of poor quality inputs by retailers lead them investing more of buying inputs. Only few farmers are aware of the soil testing services and thereby applying right dosage of fertilizer. During the sub sector study it was found that farmers consider the following factors for determining better product. Fertilizer:

• Correct Weight of the bag • Non-mixed or non-adulterated • Dryness • Company name • Bags are properly sewed • Well structure of the TSP pellet • MP is fine pellet

Pesticide and Micronutrient:

• Production date, expiry date, quantity, ingredients, application method, company name have to be mentioned on the packet

As commercial vegetable cultivation in Mymensingh is rising day by day, the eagerness of farmers to know more about pest and disease management techniques and chemicals is also increasing. Satisfaction Satisfaction level about the information regarding dosage and application method is very poor among the farmers. Although they term their relation is

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excellent with the input sellers and interaction is very frequent, they have the least satisfaction about their knowledge. Farmers complain that the sellers prescribe wrong or low quality pesticides and micronutrients for making more profits. About the Agricultural Extension Officers farmers have different type of complaint, their service and prescription is comparatively better but the access is difficult and not always available. The farmers want the Agricultural Extension Officers to visit their fields and advice them accordingly. Sub-Assistant Agriculture Officers do not visit them regularly for necessary advice. Resource farmers provide some necessary information, but in most cases they don’t have the updated information.

4.1.2 Input Sellers Usually, input sellers sell seed, fertilizer, pesticides, micronutrients and others chemicals to farmers. Inputs are essential for any kinds of production for farmers. Farmers obviously go to the retail shop for purchase their necessary elements. Because of such frequent visits relations between farmers and input sellers are strong. Based on such relationship farmers seek information on various aspects of vegetables cultivation from the retailers. The major source of this information for the Input sellers is the input companies. They require several information and services on-

Cultivation techniques - Land preparation, seed plantation and crop management Fertilizer management – dosage of regular fertilizer and micronutrients

according vegetable varieties Disease diagnosis – disease or pest identification, pesticide usage and

dosage Input sellers need this information to sell their products to farmers. If they can provide effective information to their customers and the customers gets benefit, that customer will again purchase from him and will also work as free promoters of his business. So, the only way to retain customers is to provide effective information. 4.1.2.1 Awareness Majority of the input sellers are aware that if they ask large input companies may undertake necessary activities to improve their capacity in providing better information to farmers. However, they did not ask them and the sub-sector study

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finds little endeavor from the input sellers to become more knowledgeable pursuing other sources. Satisfaction The regular practice is input companies provide some leaflet and posters with the product which act as the information source. However, this is not at all enough to make the input sellers knowledgeable on the usage and dosage of inputs. They are not contended with the information and services they get from their respective input companies.

4.2 Supply-Side – The Service Providers The service providers can be segregated into three broad categories depending on type of service they provide– (i) Embedded service- actors selling inputs e.g. seed, fertilizer, pesticides etc. and thus providing services along with the product (ii) Transaction services- irrigation equipment, spraying, soil testing etc. and (c) Public benefit service- provided by government, NGOs and lead farmers.

4.2.1 Input Sellers Input sellers procure inputs either directly from different input companies or the distributors of that company. As said earlier that these companies and distributors do not provide them with sufficient information that they require to sell and resell their products. Seed seller source their seed from different seed companies, seed growers. Most of the malpractice occurs in that level. They are always profit conscious rather than service conscious. Some large retailers buy seeds from non-contract growers as well as from contract growers who breach contract with their contractor. Then they buy forged packets of renowned brand from Siddik Bazaar, Dhaka and packet it with the name of renowned seed companies. Seed retailers keep seed in the direct sunlight, few still keep in floor and there is wide practice of selling repeatedly from same packet. Thus, they hamper the quality of the seeds, which affects the productivity of crop farmers significantly. Sometime retailer’s sale expired seed to farmers. Farmers have been cheated by retailers because they are not being familiar with about quality seed. Adulteration of seed is normal done by retailers. They mix non-seed, similar other seed with few quality seed in to packet. Generally retailers are not well educated. They couldn’t provide the

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necessary information to the farmers regarding seed identification, purification, seed bed preparation and overall cultivation method. For pest and disease, farmers usually depend on input sellers’ advice for controlling disease and pest. But for pest and diseases management, input sellers fail to provide any appropriate advice. Thus, the farmers practice their past experience, observing others and consulting resourceful farmers, which in most cases improper. Input sellers usually receive and seek information regarding agriculture practice and on products from input companies. But the input company’s rarely provide that information. Most companies use written literature on their products. Sales people visit the retailers’ shop, but no formal training is provided to the retailers by the companies. The input retailers lack the capacity to provide much sought information on various aspects of cultivation technique, appropriate dosage of insecticides or fertilizer. These input retailers though have potential to be a robust source of knowledge and information; in reality their services are limited.

4.2.2 Input Companies Pesticide/insecticide companies: There are almost 30 pesticide companies in Mymensingh district. Among those, Syngenta, Auto-Equipment, Bayer crop science, ACI have the major market shares. Companies have limited manpower at field level. So they do not reach to the farmers directly. To overcome this challenge they use retailers as leveraging point and visit the retailers’ shops frequently. Only few Pesticides companies provide training. In most cases, it is considered as dealers’ general meeting/conference once a year. No technical issues are discussed in this type of conference; rather they focus more on sales. Few numbers of farmers meeting and demonstration plots are organized by big companies, which rarely reach the mass. Seed companies: Currently 10-12 national companies are present in Mymensingh. Among them, East West, Supreme, Metal, Namdhari have the major marker shares. Large companies organize dealers’ conference in a year, but this is mostly related to sales. No formal training is provided to retailers, thus retailers fail to provide necessary information to farmers. Few demonstration plots along with the field days are organized by big seed companies, when only they introduce new variety.

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4.2.3 Tractor owner, Irrigation equipment owner, Sprayer, Arotders These service providers provide service to farmers in return of certain cost. According to them, there is no business incentive in proving information on modern cultivation technique and improved practices to farmers. The farmers also feel in the same way. These service providers therefore only emphasize on cost competitiveness to increase their business volume. Arotdars have the incentive to provide market information to farmers however; they fail to appreciate the importance of providing such information, moreover, as they don’t have the capacity to provide technical information on cultivation technique, they fail to emerge as comprehensive service provider.

4.2.4 SRDI Mymensingh Soil Resource Development Institute at Mymensingh provides soil testing service not only farmers but also dealer, private, Government and other organizations. SRDI provide service on soil test worth of Taka 58 per sample, which is subsidized for eight micronutrients test (pH, OM, Nitrogen, P, S, K, Zn and B). They are also capable to test more micronutrients like Cu, Fe, Mn, along with soil texture, soil moisture etc. They provide training to develop soil collectors on how to collect soil sample from field. SRDI collects sample of soil from each block through the Agricultural Extension Officers of DAE. But their service is very insufficient for the farmers. Besides, it takes longer time to test the soil samples. SRDI has limited workforce and they lack the business incentive to promote the service among the farmers. The dependence on the Agricultural Extension Officers for soil collection further complicates the process and adds to its inefficiency. No field based promotional campaigns are conducted by them. So farmers are nor aware of their services. Furthermore farmers’ access to SRDI soil testing laboratory is constrained because of its location at district sadar.

4.2.5 Formal and Informal Money Lenders Government banks and PKSF have low-interest rate loan programs for the vegetable growers. But the procedure of getting that loan is cumbersome. Different kinds of paper works as ownership proof, irregularity, mismanagement, corruption etc. make it almost impossible for the marginal and small farmers to acquire a loan. There are some NGOs (BRAC, REDA, World Vision, and Podokkhep) who also provide loans in vegetable cultivation. But this facility is limited to their enlisted beneficiaries. Besides, there are village mohajons (money lender) who lend money at very high interest rate. Farmers sometimes, seeing no other way,

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lend from them. None of them provide any information or knowledge service to farmers.

4.2.6 Department of Agriculture Extension (DAE) The Department of Agriculture Extension is one largest public institution which is mandated to provide knowledge, information on the different aspects of cultivation along with other extension service. This institution has the technical expertise and distribution network across the country to provide such services to farmers. Their main functions are:

To motivate and help farmers in adopting improved production practices to increase their productivity, meet national consumption requirements, maximize export and minimize import.

To provide farmers with the latest results of research and farm techniques for their socioeconomic betterment.

To help develop self-reliance and cooperation by training local leadership for organized group action.

To provide an effective linkage between the various research institutes and the farmers so that along with the flow of technology to the farmers, the farmer's level problems are also brought to the relevant research institutes for investigation and solution.

To serve as liaison agency between farmers and other organizations, both public and private concern with over-all socioeconomic development of rural people, including the credit giving and input supply agencies.

The farmers however are utterly dissatisfied with their effort. The DAE officials acknowledged the farmers’ complain that they do not regularly visit fields. However, they expressed that they have limited manpower, which in insufficient to visit fields regular interval. The sub-sector study finds motivational lacking is the major constraining factor for this practice.

4.2.7 Horticulture Centre: Horticulture centre provides training support on horticulture to farmers in Mymensingh. The trainings however are not need based and fail to cater to the need of the vegetable farmers. Each year Horticulture center set up some training target. They just only fulfill that target. Beside this, they do research on new varieties. The operation is generally in-house .Farmers have little chance to get benefited by their present operation.

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4.2.8 BADC BADC, Mymensingh has producing vegetable seed by contract farmers, which is very negligible in terms of market share. BADC provide foundation seeds to their contract growers. Contract growers, under the supervision of BADC, produce certified seeds and sell all of their production to BADC at a pre-fixed rate. BADC process the certified seeds and packet them under respective brand name. BADC is marketing vegetable seeds through his own dealers. Their service is limited to the contract growers. So the general farmers do not get access to their information service.

4.2.9 NGOs NGOs like BRAC, Podokkhep, World Vision and REDA are working in Mymensingh district with their agriculture program. Under this program, they provide credit along with the training service to the beneficiaries. They are mostly project oriented rather market. BRAC produce vegetable seeds by contract farmers and market by their own dealers. The service provisions from the NGOs reach limited number of farmers within a shorter geographical boundary.

4.2.10 Lead Farmers Lead farmers are resourceful and more adoptive to new technologies. They tend to try new things; new varieties and most importantly they are far better informed on various technical aspects of vegetable cultivation. These lead farmers are found to be one of the most reliable sources of information to the farmers. Since the services are voluntary and rendered mostly because of social acclamation, there is a clear lack of incentive and accountability. If proper incentive can be identified; these lead farmers can be a reliable and most efficient source of information to the farmers to improve their productivity significantly. 4.3 Conclusion Irrespective of size, vegetable farmers need various services. Field experiences suggest that there lie different problems on the demand side of services. The value chain actors in some instances fail to realize the need for service; in other instances they need the service but either they are not ready to pay for the service or they don’t know the source of service. Moreover, the value chain actors expressed their dissatisfaction about the quality of the service that they are currently availing. From the demand side, this market can be characterized as the market which has a high awareness of the need for quality information on

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appropriate dosage of various inputs like insecticides, pesticides and fertilizers and different vegetables cultivation techniques. Theses awareness, however, is not translated into need or effective demand. On the other hand from the service providers in most cases lack the capacity of provide such technical services. Moreover, to many of the service providers the incentive of providing such service is not very clear and they fail to identify their market and demand of their services. As a result, in the context of rising commercial vegetables cultivation the service markets are performing inefficiently at sub-optimal level. This market is the classical weak market situation where the service users are not really ready to pay for the services and eventually the service providers don’t find this market lucrative enough. Therefore, innovative steps should be taken to promote the embedded service and service provision firstly from and to the value chain actors. Once the value chain actors get the benefit of using such services, they will eventually get habituated in paying for the transactional services. At the same time, some ground-breaking initiatives should be taken to improve the public benefit service.

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5.0 POLICY RELATED ISSUES

5.0 POLICY RELATED ISSUES

Performance of businesses is affected by wide range of variables, both internal and external. The internal factors are constituted of production efficiency, backward linkage and skilled manpower and so on so forth. The external factors include social, political, legal issues. Therefore, growth of any sector or business to a large extent depends on the nature of business environment. The business environment is guided by policies. Policies not only control or guide the relationship between or among the sectors but also relationship within the sector. The policy environment has therefore both sectoral and cross-sectoral role to play. Different studies have shown that there exists a positive correlation between business growth and conducive policy environment and agriculture is no different. The subsequent segments all the policies relevant to agriculture will be reviewed to identify effectiveness of these sets of policy frameworks in creating an enabling environment so that agriculture especially commercial vegetables cultivation can grow at a faster rate. The discussions will also aim at identifying the weakness in policy formulation as well as executing or implementing which eventually impedes growth of the sector in the region.

5.1 APB, 2006 and Review of Agricultural Policies and Documents In 2006, the Ministry of Agriculture prepared an Actionable Policy Brief (APB) as a part of FAO program10. The APB presents a synthesis of the major policies relating to crop and non-crop agriculture as well as crosscutting policies of Bangladesh. The report is developed on an extensive review of available policies and documents related to crops, livestock, fishery, forestry, inputs, land, water, food, rural development, and PRSP (Poverty Reduction Strategy paper). This is the most comprehensive policy study ever accomplished in agricultural sector. In the following segment, findings

10 A Synthesis of Agricultural Policies in Bangladesh: Agriculture sector Review, Ministry of Agriculture, Government of Bangladesh, 2006.

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related to only vegetable sub-sector and its crosscutting issues i.e. land, water, food and rural development are discussed. Table 5.1 depicts a brief overview of currently effective policies and strategies related to vegetable sub-sector in Bangladesh.

Table 5.1: Vegetable sub-sector related policies Policies Major Goals and Policy Thrusts Implementing

Ministry Crop Sub-sector 1. National Agriculture Policy (NAP), 1999

Food security, profitable and sustainable production, land productivity and income gains, IPM, smooth input supplies, fair output prices, improving credit, marketing and agro-based industries, protecting small farmers interest

Ministry of Agriculture

2. New Agricultural Extension Policy (NAEP), 1996

Provision of efficient decentralized and demand led extension services to all types of farmers, training extension workers, strengthening research-extension linkage, and helping environmental protection


3. DAE-Strategic Plan, 1999-2002

Adoption of revised extension approach, assessment of farmers’ information needs, supervision, use of low or no cost extension methods, promotion of food and non-food crops, and mainstream gender and social development issues into extension service delivery.


4. Agricultural Extension Manual, 1999

Annual crop planning, seasonal extension monitoring, participatory technology development and rural approval partnership, technical audit, attitude and practice surveys.


5. Seed policy, 1993

Breeding of crop varieties suitable for high-input and high output agriculture, multiplication of quality seeds, balanced development of public and private sector seed enterprises, simplification of seed


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important for research & commercial purposes, provision of training and technical supports in seed production, processing & storage monitor, control and regulate quality and quantity of seeds.

6. Seed Rules 1997

Delineation of rules and regulations regarding changing functions and of national seed board, registration of seed dealers, seed certification, marking truthful labels, and modalities of seed inspection.


7. Plan of Action on NAP, 2003

Reviewing NAP and its implementation, setting out strategies and actions, and identifying institution and programme framework.


8. Actionable Policy Brief (APB), 2004

Prioritize immediate medium-term and long-term policy measures with respect to seed, fertilizer, land, irrigation, mechanization, marketing, agricultural research and extension with a view to increasing labour & water productivity, investment in agriculture and improve risk management.


Cross-cutting Issues 9. National Land Use policy

Minimizing loss of cropland, stopping indiscriminate use of land, preparing guidelines for land use for different regions, rationalizing land acquisition, and synchronization of land use with natural environment.

Ministry of Land

10. National Water Policy, 1998

Development and management of surface and groundwater in an efficient manner ensuring access of the poor, women and children to water, accelerating development of sustainable public and private water delivery systems, development of a legal and regulatory framework for private sector investment in water development, and capacity building for designing future water

Ministry of water Resources

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resource management plans. 11. Environment Policy 1992 and Implementation Programme

Protection of environment, identification and control of pollution, sustainable use of natural resources and participation in all international initiatives to protect environment.

Ministry of Forests and Environment

12. National Food Policy, 2004

Ensuring dependable food security system, adequate and stable supply of safe and nutritious food at affordable prices, increasing access and food purchasing power of people.

Ministry of Food

13. National Rural Development Policy, 2001

Improving income and employment of rural people, ensuring participation of rural people in development process, improvement of rural infrastructure and marketing facilities, local level planning, training of youths and women, and development of disadvantaged, small minority communities and hill tract regions.

Ministry of Rural Development and Cooperatives

14. Agriculture and Rural Development section, PRSP, 2005

Creation of enabling environment and plying supportive roles for intensification of major crops i.e. (cereals) diversification to high value non-cereal crops, (i.e. fruits & vegetable) development of non-crop enterprises (i.e. livestock, fishery, poultry), and promotion of rural non-farm economy, and outlining a policy matrix on future actions.

Planning commission, Ministry of Planning

Source: APB, 2006

5.1.1 National Agriculture Policy (NAP) Ministry of Agriculture (MoA) prepared this policy statement in 1999. NAP has an overall objective, 18 subsidiary objectives and 18 program areas. The overall objective is: “to make the nation self-sufficient in food through increasing production of all crops, including cereals, and ensure a dependable food security system for all.”

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The 18 specific objectives are also articulated in general terms and thus give general guidelines or directions about how the crop sector is to evolve to achieve the overall objective of food self-sufficiency and food security. NAP also identifies 18 program areas where actions or policies might be undertaken for achieving these goals: crop production, seeds, fertilizer, minor irrigation, pest management, agricultural mechanization, agricultural research, agricultural marketing, land use, agricultural education and training, agricultural credit, government support for production and contingency plan, food-based nutrition, environmental protection, women in agriculture, coordination among government agencies, NGOs and the private sector and reliable database. The list of program areas shows that NAP underlines all input and support sectors involved with crop production and identifies issues that need to be addressed to improve their efficiency. NAP emphasizes that the goal of food self-sufficiency and dependable food security can be achieved only through efficient delivery of inputs and support services. For example, increased production of all crops needs timely supply of quality seeds in adequate quantity. Currently, BADC, NGOs and the private sector involved with seed production/ procurement and distribution can supply only 5-6% of total national requirement. The APB suggests that crop production can be increased by 15-20% only by ensuring timely supply of adequate quality seeds. Thus, for fulfilling this objective, all constraints hindering development of seed sector must be removed and new measures to be undertaken for its expansion. It is thus important to note that ultimate objective of all policies is to improve the efficiency of relevant institutions/agencies.

5.1.2 New Agricultural Extension Policy (NAEP) The MoA prepared this policy (NAEP) in 1996 in accordance with the agricultural policies and priorities set out in the fifteen-year perspective plan (1995-2010). This policy include (i) attainment of self-sufficiency in food grain and increase production of other nutritional crops, (ii) ensuing sustainable agricultural growth through more efficient and balanced uses of land, water and other resources, (iii) increasing foreign exchange earnings through agricultural exports, (iv) introducing high value cash crops, (v)

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improving the quality and availability of seeds, (vi) reducing environmental degradation, (vii) increasing fish, livestock and forestry production and (viii) conserving and developing forest resources. The main goal of NAEP is to encourage the various partners and agencies within the national agricultural extension system to provide efficient and effective services which complement and reinforce each other in an effort to increase the efficiency and productivity of agriculture in Bangladesh. The NAEP lists 11 policy measures, called components. These components include extension support to all categories of farmers, efficient extension services, decentralization, demand-led extension, working with groups of all kinds, strengthened extension-research linkage, training of extension personnel, appropriate extension methodology, integrated extension activities, coordinated extension activities, and integrated environmental support.

5.1.3 DAE Strategic Plan 1999- 2002 The Department of Agriculture (DAE) under MoA prepared the Strategic Plan (1999-2002), which presents a structure of objectives designed to further the implementation of the New Agricultural Extension Policy (NAEP). The Strategic Plan stipulates a number of strategic objectives. These include a total of 68 objectives to be attained under six strategic areas, i.e. extension approach development, development of partnership with government agencies, NGOs, research and education, mainstreaming gender, mainstreaming the environment, human resource management, and information system development. The overall goal of the Strategic Plan is to strengthen DAE capacity and promote partnership to facilitate wide range of services for the targeted farmers.

5.1.4 DAE - Agricultural Extension Manual DAE produces the new edition of the Agricultural Extension Manual to provide all staff with a complete set of the updated principles, procedures and systems in the implementation of revised extension approach. Some of the key improvements and additions include: annual planning, replacing

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seasonal planning; strengthened approaches to farmer information need assessment; strengthened approaches to the management of BS work programs; and seasonal extension monitoring, replacing the district extension monitoring system. The voluminous manual records the field performance and puts forward a sketch map of numerous functions and modes of work of the extension workers posted at different levels of the DAE.

5.1.5 National Seed Policy, 1993 and Seed Rules, 1998 The basic objectives and strategies of the National Seed Policy (NSP) are of three types- strengthening BADC capacity, allowing the private to produce seeds of approved varieties as well as develop new ones, and also to import seeds from aboard. For this purpose, importation procedures were simplified. The NSP and Seed Rules make a number of provisions that could guarantee quality of seeds either produced domestically or imported. First, any variety, whether imported or domestically developed, must be registered with the NSB. Second, all private dealers involved with seed import, registering new seed variety and packaging seeds in labeled containers, must be registered. Finally, all varieties of seed must be certified by the Seed Certification Agency (SCA). National Seed Board: The NSP creates a hierarchical system of policymaking and executing authorities with the NSB at the apex level. The main functions of the Board include updating policies and strategies for the development of the seed industry with special attention given to promoting private sector seed enterprises; encouraging private sector participation in seed development, overseeing and coordinating the production of breeder and foundation seed by public and private seed enterprises. These functions and powers of the NSB were further consolidated and strengthened in the Seed Rules promulgated in 1998. The Rules says that, in addition to the functions entrusted in the 1993 Ordinance, the Board will have the following powers to advise the government on all matters regarding the promotion and development of the seed industry, relating to Government Seed Laboratory, withdrawal or de-notifying the outdated varieties of seeds and the procedures or standards for certification.

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BADC’s Seed Wing: The NSP document states the major functions of the Seed Wing of the BADC as production of Foundation Seeds of all publicly developed varieties of controlled crops; production of all kinds of seeds on a ‘level playing field’ in competition with the private sector; gradual withdrawal of BADC from the production of all kinds of seeds produced by the private sector; and provision of technical assistance and support services by the Seed Wing for the development of a private seed industry. Seed Certification Agency (SCA): The NSP document stipulates the major roles or functions of the SCA outlining the detailed steps of certifying seeds. National Agricultural Research System (NARS): The NSP also provides the detailed guidance to NARS with respect to redesigning plant-breeding programmes. Department of Agricultural Extension (DAE): The NSP outlines and map out the specific roles of the DAE for popularizing and monitoring quality seeds to the farmers. Bangladesh Agricultural University (BAU): The NSP stipulates specific assignments for the BAU in regards to offering updated courses on seed technology and development of a National Seed Health Laboratory.

5.1.6 Plan of Action on NAP

The MoA prepared the Plan of Action on NAP (PoA) in 2003 with the overriding objective to review the status of implementation of NAP and identify gaps in implementation. The PoA is founded on six strategic themes as follows: Strengthening partnership approach: PoA identifies six groups of stakeholders in the partnership approach devised for implementing NAP: government, farmers, commercial private sector, NGOs, farm organizations, other civil society organizations and private sector, and cooperatives and

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local government. It then lists the roles each stakeholder group is supposed to play in the implementation of plan actions.

(i) Government: PoA identifies the following nine roles of Bangladesh government as the dominant stakeholder: (a) creating a favorable macroeconomic policy environment, (b) providing public goods, (c) introducing risk-reducing legal, financial and institutional arrangements, (d) monitoring competitive conditions and preventing the emergence of monopolies and cartels, (e) ensuring food security for all, (f) help develop strong private and NGO sectors and support their initiatives through appropriate policies and policy instruments, (g) enhancing and sustaining participation of all stakeholders in consensus building in policy formulation and implementation, (h) providing price support for a limited range of strategically important commodities and (i) ensure environmental protection.

(ii) Farmers: The supposed role of farmers in this partnership are (a) achieving and sustaining household level food security, (b) deciding what to grow and how much to grow, (c) deciding the type of technologies to adopt and adapt, (d) forming cooperatives and other farmer organizations, (e) creating demand for new inputs and technologies, and (f) placing demands on the government system of public goods provision and representation.

(iii) Private sector: PoA anticipates the evolution of a strong commercial private sector that is expected to play the following roles in the stakeholders’ partnership approach: (a) conducting market research, (b) maintaining a stable supply of inputs, equipment and services to farmers, (c) marketing agricultural produces in both domestic and international markets, (d) transferring technology and (e) maintaining quality standard.

(iv) NGO community: NGOs are playing such an important role in Bangladesh economy that they are described as its third sector. Naturally, PoA anticipates them to play critical roles in the partnership approach: (a) helping to provide ‘voice’ for the un-empowered, (b) promoting rights and interests of the disadvantaged, viz., women, small and marginal farmers and

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agricultural labors, (c) providing credit and skills training for small and marginal farmers and landless labors, assisting farmers establish cooperatives and other farmer organizations, (d) facilitating contacts and contracts between farm organizations and agribusiness and (e) assisting government in food security programs. PoA also puts emphasis on creating a culture of participation by various stakeholders, because it is indeed in deplorable condition. Especially, PoA recognizes that the NAP created opportunities for broad participation of various stakeholders- government agencies, NGO and private sector- being represented in different decision making committees, but the extent to which such participation promotes a consultative culture of participation remains to be assessed.

Improving enabling environment: Efficient implementation of agriculture policies requires appropriate enabling environment, which involves two important actions: (a) establishing a positive incentive, legislative and regulatory framework within which private sector actors make decisions, and (b) influencing economic environment through judicious use of government budget, particularly providing and distributing public goods, such as research output, extension etc., and more widely (e.g., developing transport, marketing, and telecommunication infrastructure). In this regard, PoA has identified six key areas of intervention: facilitating market entry for the private commercial firms to reduce the costs of purchased inputs, leveling the playing field to ensure competitive fairness in both input and produce markets, promoting new areas and mechanisms for R&D for accelerating agricultural growth, getting the unused land back to production to minimize the effect of losing agricultural lands to different non-agricultural uses, improving the supply of agricultural credit to farmers, monitoring and enforcing laws and regulations devised for agricultural development. Commercialized agriculture: This strategic theme highlights four issues: (i) promoting production for domestic market, (ii) promoting agricultural exports, (iii) reducing price seasonality of perishable products, and (iv)

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reducing price seasonality of semi-perishable products. The trend of commercialization has already started and needs to be fostered and accelerated by forward-looking policies, which exploit comparative advantage while safeguarding them against uncertainties of market-led production. Agricultural productivity: To achieve NAP’s main objective of national food security, land and labor productivity must be maintained and increased. To this end, this strategic theme has ten issues: safeguarding environment, crop production, seeds and planting materials, fertilizer, minor irrigation, pest management, agricultural mechanization, agricultural credit, agricultural extension and agricultural research. The list of strategic issues clearly shows that improvement in land and labor productivity entails improvement in supply and use of necessary inputs, development of improved seeds through agricultural research and inform and train farmers about the new methods of crop production through effective extension service. Cross-sectoral inter-linkages: The fifth strategic issue is to improve cross-sectoral inter linkages. This strategic theme underlines coordination at three levels: coordinating with macro policy, coordinating with policies of other sector and coordinating policies within the crop sector. To achieve this objective, i.e., creating consistency and coherence within and between policies at national, sectoral and sub-sectoral levels, PoA suggests developing adequate policy analysis capability. Accordingly, independent bodies or individuals outside the government should carry out policy research and policy analysis. Two reasons justify this idea. First, it will ensure objectivity in policy analysis. Second, it is difficult to retain top quality policy analysts, because these professionals have ‘high-marketable skills’. This in turn suggests that commissioning independent analysis would require separate allocations in the annual budgets. Developing institutional capability: To properly implement the enacted reforms, the institutional capability of the concerned public agencies needs to be improved. In this regard, PoA suggests three strategic themes: revitalizing organizations like MoA itself, all institutes of the NARS, BADC,

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DAM, DAE and SCA; monitoring and evaluation of performance and moving towards a programmatic approach. Physical program matrix (PPM): The PoA puts forward a set of actions in policy matrix format to achieve NAP objectives. The matrix lists, as well as expands, the 18 programme areas identified by NAP, defines the targets/goals of each programme area up to year 2012, states the major constraints, lists the actions to be undertaken to remove those constraints and names the organizations responsible for the implementation of those actions. The main actions recommended include: adopting measures for land reclamation in line with the NWMP, developing technology for rain-fed farming, closing yield gap in slow growing districts, increasing investment in supplementary irrigation, expanding HYVs and promoting rice-fish culture through DAE.

5.1.7 Actionable Policy Brief and Resource Implications (APB)

This report is the latest in the series of agriculture sector reviews prepared by the government. The first one, called NAP, was followed by the Plan of Actions on implementing NAP in 2003. This plan, however, was not found implementable and therefore, an Actionable Policy Brief (APB) was prepared in 2004. The APB is also based on the overarching national goal, food security, which basically means sufficient cereal stock in the country. The APB is built on a solid conceptual framework, focused vision for the future, indicators of comparative advantages, competitive strength and profitability that will guide the development of each crop sub-sector, constraints to moving forward and key challenges that must be faced in achieving the overall objective of promoting food security for all in the country. The critical policy areas addressed in the APB include production and distribution of seed, production, import and pricing and marketing of fertilizers, land use, minor irrigation, mechanization, marketing and agribusiness, agricultural research and agricultural extension.

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5.1.8 National Land Use Policy

The Ministry of Land (MoL) has prepared the National Land Use Policy (NLUP) to fill up an important policy gap in the country. The NLUP deals with land uses for several purposes including agriculture (crop production, fishery and livestock), housing, forestry, industrialization, railways and roads, tea and rubber. The document basically identifies land use constraints in all these sectors. Some of the major ones include declining land productivity due to unplanned and improper uses of land and decreasing soil fertility, diminishing water land and aquatic bio-diversity, dwindling natural forest and environment. The land issues fall in the domain of many ministries and this gives to problems of inter-ministerial coordination over the use of land resources. One glaring example is the non-compliance of leasing arrangements of water bodies for fish culture due to triangular actions or inaction of three ministries- Ministry of Land, Ministry of Water Resources and Ministry of Fisheries and Livestock.

5.1.9 National Water Policy

The ministry of water resources declared the National Water Policy (NWP) in 1998. The declaration states: As water is essential for human survival, socioeconomic development of the country and preservation of its natural environment, it is the policy of the government of Bangladesh that all necessary means and measures will be taken to manage water resources in the country in a comprehensive, integrated and equitable manner. The policies enunciated herein are designed to ensure continued progress towards fulfilling the national goals of economic development, poverty alleviation, food security, public health and safety, decent standard of living for the people and protection of natural environment. The NWP has 16 components, which describes policy measures to be undertaken to achieve the above objectives. These policy measures include: (1) river basin management, (2) planning and management of water resources, (3) water rights allocation, (4) public and private involvement, (5) public water investment, (6) water supply and sanitation, (7) water and agriculture, (8) water and industry (9) water, fisheries and wildlife, (10) water and navigation, (11) water hydropower and recreation, (12) water for environment, (13) water for preservation of haors, boars, and

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beels, (14) economic and financial management, (15) research and information management and (16) stakeholder participation. The NFP emphasizes, among others, three interrelated issues such as water and agriculture, water, fish and wild life, and water for preservation of haors, baors and beels. One of the notable policy directions in the NWP was to encourage private sector development of groundwater for irrigation and also to emphasize surface water augmentation.

5.1.10 Environment Policy

The Ministry of Environment and Forests prepared an Environment Policy and its implementation program in 1992 with the overall objective of protecting the environment with a view to achieving a sustainable development through environment friendly use of natural resources. The domain of the policy spread over 15 areas i.e. agriculture, industry, health, energy, water development and flood control, land use, biodiversity, fishery and livestock, food, coastal and marine environment, transport, housing and urbanization, education, science and technology, legal and institutional framework. The Policy also prescribed detailed activities to be undertaken by the various agencies of the government in implementing the policy.

5.1.11 National Food Policy

The Ministry of Food (MoFood) has prepared the National Food Policy (NFP) with FAO support. The NFP clarifies three basic concepts: food security for all people, access to food depending on household income and food prices and health care taking care of nutritious food and improvement of health care system. Given these basic concepts, the major objectives of the national food policy, which aims at ensuring dependable food security for all, are the following: (a) Adequate and stable supply of safe and nutritious food at affordable prices; (b) Increased physical, social and economic access and purchasing power of all people, and; (c) Adequate nutrition for all individuals, especially children and women. The strategy for ensuring adequate and stable supply of safe and nutritious food at affordable prices- depends basically on improvement of domestic

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food grains production and food import. This will be realized through (i) improving agricultural research and extension, (ii) efficient use of water resources, (iii) availability of agricultural inputs and their efficient use, (iv) agricultural diversification and improved agricultural technology promotion of non-food grain crops (vegetables, oilseeds, pulses and fruits), development of poultry, fisheries and livestock, increasing agricultural productivity and reducing post harvest losses and disease/pest prevention. The second strategy is the development of efficient food market: (i) development of market infrastructure, (ii) encouragement to private sector by promoting private storage and movement of food items, liberal credit for food items and development and enforcement of quality standards and (iii) development and dissemination of early-warning and market information. The third strategy is the nondiscretionary food market intervention for price stabilization, which is to be realized through (i) price incentives for domestic food production, (ii) public food grain stock and (iii) consumer price support.

5.1.12 National Rural Development Policy

Ministry of Local Government, Rural Development and Cooperatives has formulated the National Rural Development Plan (NRDP), 2001 with the overall objective of poverty reduction through comprehensive rural development programs. The NRDP has stipulated 17 objectives. The main objectives are related to generating income and employment of rural people, especially women and the poor, creation of favorable environment for utilizing the potential human resource, development of rural physical infrastructure, empowerment of rural women through education and skill training, strengthening local government and facilitating participation of government agencies, NGOs and private sector, supporting the landless and marginal farmers and so on.

5.2.13 PRSP- Agriculture and Rural Development

The PRSP places agriculture and rural development as the key driver of pro-poor growth strategy. Government’s overriding policy is to create enabling environment and support the transformation of subsistence agriculture to a

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more diversified commercial agribusiness with significantly increased participation of private sector. For crop and non-crop sector growth, PRSP put emphasis on achieving productivity and profitability gains, broad-based support to agriculture, diversification and commercialization of agricultural enterprises in the face of trade liberalization under globalization. PRSP also stressed on cross-cutting issues, i.e. agricultural research and technology generation, farmers’ demand-led extension services, energizing agricultural marketing and agro-processing, land use and women in agriculture. The most important contribution of PRSP exercise on agriculture is the formulation of a reasonably precise and workable policy matrix, which identifies 22 crucially important strategic goals, fixes up targets against these goals, charts actions already taken, sets future policy agenda and priorities and delineates responsibilities for the concerned ministries. The lead ministries established its ownership by playing active roles in fixing the policy priorities, which were then seeped through wide range of participation from the mainstream ministries, agencies, academia, NGO and civil society groups.

5.2 Weakness in Policy Formulation The myriad of policies discussed above are generally compatible in terms of their avowed goals of rapid poverty reduction through increasing productivity and profitability of crops, livestock and fishery, creating income and employment opportunities, widening work opportunities for rural women and improving competitiveness of farmers. Almost all of these policy documents have been prepared long before the PRSP has been in place, yet the major thrusts of these policies are largely consistent with the MDGs as well as the strategies and future policy priorities of agriculture and rural development policy matrix suggested in the PRSP. These have, in general terms, important synergies within the broad objectives of attaining food self-sufficiency, food security and rapid reduction of poverty in rural areas. All of these policies underscore efficient use of land, labour, water and other natural resources with special emphasis on women participation and environmental protection. The other common concerns of all these

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policies are the expressed need for strengthening research extension linkage and coordination amongst the ministries and agencies in the design, approval and implementation of projects. However, the policies discussed have failed to address some of the major issues: Overemphasize on cereal food production: The NAP, PoA, APB and other major crop sector policy documents mainly focus on food production, especially rice production, giving lesser attention to non-cereal crops i.e. vegetables, fruits and flowers. So in major cases policy prescriptions for input distribution and input levels, extension services, credit delivery and output marketing are all directed to major cereal food crop, rice. Lack of comprehensive analysis on crop diversification and commercialization: The policy documents mention diversification and commercialization of agriculture as a common objective, but very little understanding is given with respect to relative profitability of competing crops, physical and location specific conditions for non-crop enterprises, supply chain of high value products and provision for processing, storage and marketing activities. Weak private sector focus: The agriculture and rural development policies that have been reviewed in this work largely demonstrate increased role of public sector. Although the policies broadly mention increased role for the private sector, there are seldom any clear direction as to how and where the growing private sector and NGO have the opportunities and support to play more active role. Lack of Commercialization of soil and water tests: Soil tests for proper fertilizer use and water quality tests for fish culture are crucially important interventions. The concerned policies mention these casually to imply that the government should do these, but there does not seem to be any understanding of the recent trend that the private sector has already taken up soil tests (with Katalyst support) and water test by an NGO, Shushilon as business ventures.

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Lack of guideline regarding new form of production - contract farming and value chain: The policies being reviewed do conceive agriculture as individualistic production system, although this is becoming economically and technically infeasible for increasingly large number of small and marginal farmers due to rapid decline in average farm size. Increase in number of farms vis-à-vis rapid loss of cultivable land is recognized in the documents, but there are no reflection on or thinking about the emerging new forms of farming e.g. contract farming by the private sector for high value products like vegetables, poultry, aromatic rice, milk and so on. Absence of farm and non-farm linkage: The most conspicuous shortcoming of all the policy documents is their silence over the growing non-farm sector development. Even the most recent policy document, e.g. APB avoids any analysis of linking the growth of farm productivity with development of non-farm activities. This is bound to limit the value of the APB exercise in that production of crops, especially vegetables, can not be increased unless aggregate demand for them is increased and the demand for vegetables will not rise without increase in employment and real wage through acceleration of non-farm sector growth. Ineffective policy guideline on subsidy and its impact: Subsidy on agricultural inputs, i.e. diesel and fertilizers, is put forward as a tool for allowing a ‘level playing field’ for the Bangladeshi small farmers in the trade liberalized era especially, when Indian farmers are subsidized for irrigation, electricity, etc.). But the case of subsidy is put forward without any rigorous analysis of its possible effects on real rice price, sustaining rice production at profitable level or its implementation. The glaring example is the Agriculture Ministry’s attempt to introduce subsidy on diesel for irrigation pumps without understanding the varied pattern of pump ownership and management, modes of payment for water (cash or crop -share), dynamics of water market (partnership and social conflict resolution) and so on so forth.

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5.3 Weakness in Policy Execution From the policy review aforementioned weaknesses were identified at policy formulation level. Along with those constraints, the sub-sector study revealed the following anomalies related to policy implementation. These weaknesses are observed for reasons like weak institutions, lack of capacity of institutions, inefficient market system. The most concerning factor is that poor implementation of different policies are directly affecting the growth of enterprises in vegetables sub-sector. Malfunctioning and ineffective fertilizer (urea, MP, K) distribution system: Fertilizer distribution system is malfunctioning in Mymensingh and Netrokona because of weak monitoring from government agencies. As a result, the dealers are creating artificial shortage in the market and causing price hike in the market. This phenomenon has two fold impacts. On the one hand the farmers are not getting fertilizer at right time and thereby production is being effected. On the other hand, because of the high price, cost of production is increasing resulting in lower profit for farmers. Lack of monitoring and control mechanism for restricting sales of adulterated fertilizer (urea, MP, K): Albeit selling adulterated fertilizer is a punishable crime, sales of adulterated fertilizer is quite widespread and effective mechanism to restrict such activities is almost non-existent. At retailers’ level farmers are being cheated either because of adulterated fertilizer or low amounts. So, the farmers, who purchase from these retailers, remain in lower productivity level. Many farmers lodged complain at DAE offices. DAE officers acknowledged this problem, but according to them, as the process to check purity of fertilizer are cumbersome, lengthy and costly. In addition they lack proper capacity to conduct such test. Lack of control over sales of low quality micronutrients : Low quality micronutrients producers offer higher commission to the retailers. So, to make more profit, the retailers push the low quality micronutrients among the farmers who mostly buy in credit. As said earlier, the related government agency does not regularly visit to check the quality of micronutrients that are sold in the market. Rather there is a belief among

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farmers that these agency people take bribe from these retailers and input companies. Packaging and sales of unauthorized and low quality seed: Some seed sellers produce or collect low quality seeds, pack it and then sell it claiming as good quality ones. They do not have any seed packaging and marketing license. However, the sub-sector study did not find any instances where local office of seed certification agency has raided these shops and penalized them as per the law. Packaging and sales of adulterated packed seed: There are some retailers who packet low quality seeds in fake packets of renowned companies. Then they sell those through the mobile seed sellers in local haats and bazaars. Companies are aware of such activities and pushed the seed certification agency to take exemplary action on those retailers. However, the government yet not taken any drive to stop and discourage this practice. Sales of low quality pesticides Low quality pesticides marketing companies offer higher commission to the retailers. So, to make more profit, the retailers push the low quality pesticides among the farmers who mostly buy in credit. And as said earlier, the related government agency does not visit to check the quality of pesticides and punish them. Sales of open packet and adulterated pesticides: The study found some retailers who sell pesticides in open packet. This is not desirable as this deteriorates the quality of pesticides and also provides opportunity for adulteration. So the farmers are suffering with high pesticides cost and remain at low productivity level. Sales of expired pesticides and seed: Expired pesticides and seeds are sold frequently as the farmers have no awareness about date of expiry. On the other hand, while some farmers are aware about date of expiry, they find it difficult to read as the date is usually written in English and small font size

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and different companies write the date in different parts of the packet which sometimes is not easy to find. Sales of low quality insecticide and fertilizer: Low quality insecticide and fertilizer producers offer higher commission to the retailers. So, for more commission and profit, retail sellers sell low quality insecticides and fertilizers. The related government agency does not regularly visit the retailer shops to find the quality of pesticides that are sold in the market. Rather there is a common belief among farmers that these agency people take bribe from these retailers and input companies. Inactive soil test extension program: Though there is a SRDI in Mymensingh, the soil testing service and extension program is not active at field level. The difficulty is - while SRDI is mandated to do the soil test, DAE is mandated to do the promotion activity. But since DAE has no professional incentive they did not accomplished any meaningful activity relating this. Complication in approval and sanction of loan from banks: Though national banks have provisions for loan to the farmers, they hardly get it. The process of getting loan is very much complex and dilatory in terms of ownership proof, certificates from local authorities, collateral etc. In addition, bribery, bureaucratic process and sluggishness of bank officials make the farmers reluctant to go for bank loan. Insufficient and ineffective agricultural extension program: The study did not find any active agricultural extension program that is helping the vegetable farmers in adopting better technology and promoting vegetable cultivation among non-vegetable growers. DAE lacks the motivation to undertake these activities. Very limited program for introducing new variety: DAE conducts very few programs for introducing new varieties of vegetable. They termed manpower crisis who were supposed to visit field to support and guide the farmers as the major underlying cause. However when the private seed companies ask their assistance in promoting the new variety seeds, they actively participate in the process.

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No practice of proper crop rotation and intercropping: DAE is supposed to make the farmers aware of the knowledge on crop rotation and intercropping to ensure maintaining land fertility and maximum land use. DAE has failed to do so. Use of harmful hue, insecticide and chemical in vegetable: Some farmers use unhealthy hues, insecticides and chemicals so that the vegetables look fresh and remain fresh for longer time. Though it increases their benefit, the consumer pay the cost as it harms the consumer health. No allotment of fertilizer to the lessee farmers: As the government tightens its grip on fertilizer distribution system, now only the land owners are titled to get the urea. So the farmers who do sharecropping or taken lease had to search for the owner. There are many cases the land owners live in Dhaka and other distant parts of the country. Thus the situation complicated the fertilizer availability chiefly for the marginal and small farmers who do sharecropping.

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6.0 A CASE STUDY

6.0 A CASE STUDY

Mr. Habibur Rahaman is a small farmer. He is about 50 years of age. He lives in Borar Char village of Mymensingh Sadar. He owns 38.5 Decimal farm land. Before 2004, he used to grow rice, jute and mustard. In addition, he used to cultivate vegetables in homestead area, chiefly for family consumption. Learning from neighboring vegetable farmers that commercial vegetable production is significantly profitable than rice, on 2004 for the first time he planted tomato in 9 decimal land instead of Boro rice. The result was more than satisfactory; he made more than 8000 taka profit, while he received about 4000 taka profit by producing Boro rice on the same amount of land. This boosted his confidence in vegetable cultivation. Since then, he gradually increased the vegetable acreage in each year. On 2006, he cultivated tomato in his entire farm land. Though he got lower price than the preceding two years, the total profit still stands more than 20000 taka. He expressed that he is satisfied as the profit is far more than producing Boro rice or mustard. This year he already made contract with a large land owner to cultivate 22 decimal of his land on share cropping basis. He said he is planning to grow tomato in that land. However, he cultivates the OP variety tomato. In answer to the question why he cultivates OP, he stated two reasons – (i) he feels comfortable with OP variety as he is cultivating it from the start, and (ii) the seed is easily available. When asked had he heard about hybrid seeds, he replied with yes and said hybrid is widely used in cucumber, cauliflower and cabbage production. One of his neighbors had last year cultivated the hybrid tomato of Namdhari. According to him, the result was satisfactory but not convincing as that farmer does not know the improved crop management technique required for hybrid tomato production. The seed availability is also a problem as he had to go Mymensingh city to procure hybrid seeds. The boost in income due to vegetable production enabled him some positive changes in livelihood. In terms of investment, he bought a cow using the profit of 2005 tomato production and another one this year. Last year, he renovated the house by covering the roof with tin sheets and establishing a sanitary latrine. Improvement in his economic condition also raised his social status in the social interactions and confidence about the future of his children. Now he wants to grow kharif vegetables like cucumber and pointed gourd in summer season. But most of his lands fall under ‘medium-low’ category

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and water clogs during rainy season. He heard that some farmers in other char areas started cultivating kharif vegetables in low lying lands using trench method. He has a plan to visit those vegetable fields in next month and talk with the farmers to know more about the technology. If he feels convinced about the technology, next year he will cultivate vegetables pursuing this method in 9 decimal-lands.

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7.0 MARKET DEVELOPMENT STRATEGY

7.0 MARKET DEVELOPMENT STRATEGY

7.1 Introduction Analysis of Mymensingh vegetable sub-sector shows that despite the above mentioned constraints the vegetable sub-sector is growing both horizontally and vertically. And since it exports about 60% of total production to other areas of the country, its market share in national consumption is also increasing but (i) the increase of land productivity has become marginal in recent years, (ii) small and similar product range has decreased the profitability and increased the risk on return, and (iii) non-scientific usage of excessive inputs in short run has reduced the profitability and in long run may hamper the sustainability of soil health and thus vegetable production. Since demand and price of vegetables are soaring throughout the country, the total sales price increased dramatically which increased the profitability and fostered the area expansion. However, if these three major trends can be addressed properly and effectively, the productivity and profitability will improve tremendously as well as the risk on return will minimize considerable. The smooth market linkage with Dhaka, Chittagong and Sylhet market is playing as one of the major facilitating factor in current growth. At the same time, the location, agro-climatic characteristics and productivity represents that small improvement can make the region competitive with Comilla, the major vegetable exporting region of the country, in international export market and also competitive sourcing region of agro processing industries. So the market shall be facilitated to enter into the high-end segment. To this respect, the market also needs to make itself diversified, in terms of vegetable varieties and seasons. Since vast demand-supply surplus exists in local market, it will be challenging for the marginal and small vegetable growers to enter into the high-end segment. So any interventions designed targeting this segment need to be careful, practical and achievable. 7.2 Working areas In terms of current area coverage and vegetable production volume and growth rate, the sub-sector study has selected seven upazilas for interventions. They are – Sadar, Trishal, Gaphorgaon, Gauripur, Phulpur, Fulbaria, and Ishorgonj.

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Now, in terms of large presence of marginal and small farmers as well as their productivity and income growth potential, the sub-sector study selected and ranked six upazilas for intervention. They are (in descending order of outreach and potentiality) Gouripur, Mymensingh Sadar, Phulpur, Phulbaria, Ishorgonj and Gaphorgaon. 7.3 Vision Mymensingh vegetable sub-sector will achieve:

(i) The current average land productivity of Comilla (29 MT/Hectare), the leading vegetable region both in term of land productivity and production, by 2012 by improving the land productivity. This will require 61% productivity boost than current level in next five years - on average 12% per annum land productivity growth of selected vegetables from current 2.9% per annum productivity growth rate.

(ii) The land productivity growth will increase the net return and profitability by at least 30% in next five years

(iii) Higher profitability will almost triple the vegetable cultivation area in the next five years, from current 5.54% to 10% of total cultivated area.

(iv) This will generate new employment of more than three times than current size.

SLIPP’s intervention will make contribution to sustainable livelihoods for disadvantaged rural farmers in Mymensingh. The vision has mainly included the MSEs that are currently engaged in commercial vegetable production. It means that market will experience faster growth rate by engineering systemic changes that would improve its productivity, profitability and production. Adapting attitude of actors in learning and practicing improved technological practices and modern inputs will act as lubricating factor in achieving this target. 7.4 Strategies To achieve the vision stated above, project will resort three broad strategies. There might be several interventions under each strategy. The interventions, however, are suggested by analyzing the present market situation. Since market situation changes and market development approach is flexible in its nature, the interventions may also change in time to comply with the changes.

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Strategy 1: Make vegetable related good quality inputs and services available to the MSEs (Seeds, fertilizers, micronutrients, compost, pesticides and PGR) that can help to improve crop husbandry and increase profitability Strategy 2: Make the MSEs capable to act jointly/by groups and accrue benefits from the market as well as from government policies Strategy 3: Make the MSE’s capable in tapping up the market opportunities Strategy 4: Link the MSEs with the advanced technology service providers and the higher end market players to promote sustainable cultivation practice 7.5 The Intervention Plan Intervention plans are constructed based on the strategies.

7.5.1 Strategy 1 Improve the availability of quality inputs (hybrid seed, fertilizer, micronutrient, compost, pesticide) through strengthening supply chain of inputs suppliers, retailers’ network by effective services from input companies This can facilitate by preparing the business potential and financial feasibility calculations and projections for each union and sharing this with the prominent input companies. In addition, SLIPP can work with the companies in improving the knowledge base of these retailers (new + old) to further increase the interest of companies in expanding retailer network. Also, the hybrid seed companies will be assists to undertake awareness activity on quality seed usage benefits among vegetable growers and other necessary activities to weaken the presence of mobile seed sellers. Improving dissemination of information about proper cultivation technique to the farmers by the seed sellers, especially the hybrid ones, through seed retailers training Land productivity and profitability of vegetable farmers will increase if farmers had more and better information on seed plantation and cultivation knowledge. Currently they rely on other farmers and on retailers for information on quality seeds. But as retailers lack the proper knowledge and motivation, they are failing to serve the farmers. So seed retailers,

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especially the hybrid ones, will be trained on the aspects of quality seeds and modern cultivation technology through seed marketing companies. Improving dissemination of information about disease management and appropriate usage and dosage of pesticides to the farmers by the pesticide retailers through pesticide retailers training Among all kinds of input retailers, pesticides sellers are the biggest network and possess large product line, which, in many cases, includes pesticides, fertilizers, seeds and micronutrients. But their poor knowledge and also lack of motivation are impeding the flow of information to the farmers. So the pesticide marketing companies will train pesticide retailers on disease management and appropriate usage and dosage of pesticides. One major aspect of this intervention shall be to promote rationalized usage of pesticides and facilitate the quality pesticides companies to rule out the non-quality ones from the market. Improving dissemination of information about appropriate usage and dosage of inputs to the farmers through micronutrient retailers Micronutrients are usually marketed through seed retailers and pesticide retailers in Mymensingh. Since micronutrient use remains at early stage, the micronutrients retailers lack proper knowledge on appropriate usage and orientation how to promote micronutrient usage. Therefore these retailers need to be trained through micronutrient companies, as this input possesses significant importance in enhancing the land productivity and profitability of vegetable farmers. Awareness raising campaigns at farmer level on benefits of micronutrient use can also be simultaneously arranged with the active participation of those companies. SLIPP must be careful in selecting quality micronutrient companies and may conduct quality test of micronutrients at SRDI before approaching those companies. Improve the dissemination of cultivation technology and better quality input usage by developing service providers in the agriculture sector The prominent seed companies can hire some lead farmers, train them on modern cultivation techniques, and use them in disseminating modern cultivation techniques through various promotional programs. Finally these farmers will emerge as the commission based promotional agent of those seed companies and act as private service provider to the vegetable farmers. This can be also pursued for pesticides companies.

7.5.2 Strategy 2 Facilitating the formation of producer groups to act collectively in purchasing inputs and services and making them capable to adopt modern cultivation technologies and inputs

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Vegetable sector is moving forward in many parts of the country. So, linking underdeveloped regions with the developed regions, private agro based companies, exporters and research institutes can keep this sector updated with new technologies. A common body constituting the primary stakeholders can take the lead in this regard. To carry out the intervention some activities will be followed like: Identify existing Associations/influential primary stake holders, arrange meetings to understand their needs and future plans, observe their activities after the meetings (to assess their buy-in), arrange vision workshops, assist them in implementing the planned activities that comes out through vision workshop. They can also work as a platform for collective buying of modern inputs, which will substantially reduce their production cost. Hiring lead farmers through this channel can also introduce the vegetable-fish culture technology. Linking with the financial institutes Many poor vegetable farmers lack sufficient capital and most of time purchase low quality seeds to minimize the production cost. If they are lent money at their convenient terms, they would use premium quality hybrid seeds and make more profit as the productivity will be higher. This is also true for irrigation equipments. So, local NGOs, who have other micro-credit programs, will be facilitated to provide loans to the poor vegetable farmers for purchasing inputs and irrigation equipments. The farmer groups also can play significant role in enabling their members to access the loans. Enabling farmer groups to promote quality micronutrient usage The farmer groups, in assistance from SLIPP, shall collect the samples of all available micronutrients in the region and send it to SRDI to test the quality. Based on the findings, they will aware the farmers which products are of good quality and how much they have to apply to get higher productivity. This will promote healthy competition in micronutrient market and rule out the less quality ones. Strengthening the linkage of rural physical markets with the growth centers and outside markets to reduce the risk of vegetable sales and ensure more profitability of farmers Inefficient linkage of many rural physical markets with the major vegetable trade centers is constraining the marginal and small farmers receiving fair price for vegetables. This will require communicating with the arotders, paikars and outside traders to establish new assembly markets or popularize the existing assembly markets by streamlining the trading channel. Promoting a platform for the MSEs and policy makers for communicating with each other so that MSEs can accrue benefits from government policies A common platform for the MSEs and policy makers will be promoted so that policy makers get feedback from the vegetable farmers and the vegetable farmers can provide input in policy formulation. This platform will also work actively to stop the selling of low quality inputs.

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7.5.3 Strategy 3 Dissemination of early variety and late variety vegetable practices The sub-sector study finds that very few farmers in Mymensingh have started cultivating early and late variety vegetables. However this practice remains confined among them while most of the district is suitable for this practice. Agro-climatic characteristics of Mymensingh are suitable for early variety bean, cauliflower and cabbage production and also late variety tomato production. So, these vegetables and their cultivation technologies can be promoted in the region with the assistance of seed companies. Improving the cultivation practice and adopting new varieties through public bodies and related institutes Adoption of modern cultivation technology and introduction of new vegetable varieties for which there is no private companies, like Aurum and Kakrol, can be facilitated by hiring the technical assistance of public institutions. This will also create information and technology dissemination linkage between the MSEs and the public institute. Establishment of contract farming practice with agro-processing companies and vegetable exporters Agro-processing companies and vegetable exporters can be introduced and linked with the vegetable farmers of Mymensingh. This opportunity is particularly notable for Aurum (Loti) and Tomato. At present, they source these vegetables through various trading channels that increase their cost and sometimes do not match with quality. Initially they can introduce loose contract farming whereby they will provide improved variety and technology and purchase the whole production at current market rate. Improving harvesting techniques and introduce packaging to reduce wastage, increase shelf life Harvesting is key point to reduce wastages and increase shelf life, product specific harvesting and packaging techniques would be consider. Paikers and traders use bamboo basket or jute bag for vegetable transportation, which result in high wastage rate. However, consumers are now ready to pay more for fresh and good quality vegetables. So there is now ample scope to introduce financially viable modern packaging services. Therefore necessary activities will be undertaken to introduce modern packaging in vegetable transportation.

7.5.4 Strategy 4 Developing private soil testing service provider by establishing linkage with SRDI Mymensingh and raising awareness among farmers on the benefits of soil testing

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Sustainability of vegetable sub-sector widely depends on maintaining the soil health and adopting crops accordingly. Therefore SLIPP shall search for large fertilizer retailers or some lead farmer who wants to work as one stop service provider for soil testing service. He will build a soil collectors network, collect soils of interested farmers with the help of those soil testers, send it to SRDI for soil test and finally communicate the soil test result and its implications to the farmers. He should charge the expense and some profit for providing this service. SLIPP will facilitate the whole process and assist him undertaking various promotional activities, supply side activities, to aware farmers about the benefits of soil testing and increase his customer base. Promoting environment friendly bio pesticides Environmentally friendly bio-pesticides are recently introduced in the market. So, SLIPP shall work with these companies in promoting these products among the MSEs and aware them its usage and profitability criteria. Here demonstration plots arranged jointly by the company and farmer groups may play significant role. At later stage, SLIPP may initiate some activities to link these producers with specific outlets and aware the consumers about its health benefits to consumers. Improve the dissemination of market information by establishing linkage among arotders, outside traders and vegetable growers Under this intervention, SLIPP will make farmers groups and link with them with some arotders/outside traders. The arotders/outside traders will advice what to produce and how much price he believes the farmer will get during harvesting. The arotder/outside retailer will guarantee the sales of products at the then market price. Since there will not be any intermediaries and the traders are certain how much and which varieties they will get, this loose contract farming will diminish many risks in the market and will be financially beneficial for both the grower and arotders/outside traders. Most importantly, vegetable growers will not lose their investment because of oversupply or market failure.

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Table 7.1: Priority Setting of Interventions

Contribution in Sl. Interventions Productivity Profitability SME

outreach Ranking

1

Improve the availability of quality inputs (hybrid seed, fertilizer, micronutrient, compost, pesticide) through strengthening supply chain of inputs suppliers, retailers’ network by effective services from input companies

Medium Medium High 5

2

Improving dissemination of information about proper cultivation technique to the farmers by the seed sellers, especially the hybrid ones, through seed retailers training

High High High 1

3 Improving dissemination of information about disease management and appropriate usage and dosage of pesticides to the farmers by the pesticide retailers through pesticide retailers training

High High High 2

4 Improving dissemination of information about appropriate usage and dosage of inputs to the farmers through micronutrient retailers

Medium Medium Medium 11

5 Improve the dissemination of cultivation technology and better quality input usage by developing service providers in the agriculture sector High High High 3

6 Facilitating the formation of producer groups to act collectively in purchasing inputs and services and making them capable to adopt modern cultivation technologies and inputs

Medium Medium High 6

7 Linking with the financial institutes Low Medium Medium 128 Enabling farmer groups to promote quality micronutrient usage Medium Low Medium 139 Strengthening the linkage of rural physical markets with the growth

centers and outside markets to reduce the risk of vegetable sales and ensure more profitability of farmers

Low High Medium 9

10 Promoting a platform for the MSEs and policy makers for communicating with each other so that MSEs can accrue benefits from government policies

Low Low Low 17

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11 Dissemination of early variety and late variety vegetable practices Medium High Medium 712 Improving the cultivation practice and adopting new varieties through

public bodies and related institutes Medium Medium High 8

13 Developing private soil testing service provider by establishing linkage with SRDI Mymensingh and raising awareness among farmers on the benefits of soil testing

Medium Medium Low 15

14 Promoting environment friendly bio pesticides Medium Low Medium 1415 Improve the dissemination of market information by establishing linkage

among arotders, outside traders and vegetable growers Low High Medium 10

16 Improving harvesting techniques and introduce packaging to reduce wastage, increase shelf life Low Medium Medium 16

17 Establishment of contract farming practice with agro-processing companies and vegetable exporters

High High Medium 4

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8.0 CONCLUSION

The study depicts that Mymensingh has huge potential in vegetable sub-sector and a number of interventions mentioned above can act as the stimulant to turn that potential into reality. However, since the dynamics of farmers varies depending on farm size, the interventions are required to implement with sufficient flexibility to accommodate those differences. But obviously, according to the differences and trends of the market situations, new interventions may come up and at the same time, some proposed interventions might drop down.

8.0 CONCLUSION

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Annexure

Annexure

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Key Informant Questionnaire me&Rx mve-‡m±i wel‡q AwfÁR‡bi Rb¨ cÖkœgvjv

bvg cÖwZôvb cèx/c` wVKvbv DcvË msMÖnKvix ‡dvb ZvwiL 1) Avcbvi cÖwZôvb wK wK Kvh©µg cwiPvjbv K‡i _v‡K? 2) Kviv mvavibZ Avcbv†ì Kvh©µ†g AskMÖnb K‡i A_©vr Uv‡M©U MÖ�c Kviv? 3) gqgbwmsn/‡bÎ‡Kvbvi me&Rx Pvl mg&cÖmvib I Dbœqb welqK ev me&Rx Pvlx‡ì RxebhvGvi Dbœqb welqK wK wK Kvh©µg Avcbviv cwiPvjbv K‡ib? 4) Avcbvi g‡Z †Kvb †Kvb mgm¨v gqgbwmsn/‡bÎ‡Kvbvi me&Rx Pvl m¤cÖmvib I Dbœq†b evav wn‡m‡e KvR Ki‡Q? 5) GB mgm¨v¸‡jv wKfv‡e mgvavb Kiv hvq? †K wKfv‡e GB mgvav†b Ask wb‡Z cv‡i? 6) Avcwb wK mvg‡b bZzb †Kvb m¤¢vebv †`L‡Z cv‡�Qb? †Kvb †Kvb †¶‡G? wKfv‡e? 7) miKv‡ii I Ab¨vb¨ cÖwZôv†bi †Kvb †Kvb bxwZgvjv/cwjwm me&Rx Pvl Dbœq†b I m¤cÖmvi†b Ae`vb ivL‡Q? gqgbwmsn/‡bÎ‡Kvbvi †¶‡G †mUv wK cÖ‡hvR¨ n‡�Q? 8) miKv‡ii I Ab¨vb¨ cÖwZôv†bi †Kvb †Kvb bxwZgvjv/cwjwm me&Rx Pvl Dbœq†b I m¤cÖmvi†b cÖwZeÜKZv wn‡m‡e KvR Ki‡Q? K‡i _vK‡j †m¸‡jv wK wK? 9) gqgbwmsn/‡bÎ‡Kvbvi me&Rx mve-‡m±i wel‡q Avi †K †K fvj Z_¨ w`‡Z cvi‡e? (Zvi bvg, †dvb bs I †hvMv†hv‡Mi wVKvbv) D‡j−L¨: hZ †ekx m¤¢e wi‡cv©U I Z_¨ wfwËK cyw¯ZKv msMÖn Ki‡Z n‡e

96

Questionnaire for Assessing Supply Side of BDS

DËi`vZv DcvË msMÖnKvix

¯’vb/ wVKvbv

eëmvi aiY eëmvi eqm

‡Uwj‡dvb,†gvevBj, B-‡gBj

KZ Rb Kgx© ¯’vqx: A ’̄vqx: cvwievwiK:

1. cY¨ Drcv`b/ weµ‡qi †¶‡Î mvaviYZ Avcwb wK wK ai‡bi †mev/ mvwf©m/ civgk© cÖ`vb K‡ib?

2. Avcbvi †mev/ mvwf©m/ civgk© cÖ`v†bi aib weeib Kiyb|

• Kv‡K

• KZRb‡K (wmR‡b)

• KLb (mgqKvj - wmR‡b †Kvb mgq mvaviYZ †mev w`‡Z nq)

• †Kv_vq (¯’vb - wbR eëmv¯’‡j/ wb‡R wM‡q)

• Ab¨vb¨

3. Avcbvi gZ GB GjvKvq Avi Kviv Ges KZRb GB ai‡bi †mev/ mvwf©m/ civgk© cÖ`vb K‡ib? (bvg,

wVKvbv, †dvb)

4. Avcwb mvaviYZ wKfv‡e GB ai‡bi †mev/ mvwf©m/ civgk© cÖ`vb K‡ib? (Fee/ Embedded/ Free)

Fee n‡j KZ?

5. ‡mev cÖ`vb Ki‡Z †h LiP nq Zv Avcwb wKfv‡e Zz‡j Av‡bb? (c‡Yï g~j¨ †_‡K/cÖ‡R± †_‡K/FY

Kvh©µg †_‡K/ Ab¨vb¨)

6. ‡mev w`‡Z wM‡q Avcbvi/ Avcbv‡ì mvaviYZ wK wK ai‡bi mgm¨v nq? e¨vL¨v Ki“b|

7. GBme mgm¨v wKfv‡e mgvavb K‡ib?

8. GBme mgm¨v mgvav‡b Avcbvi †Kvb cwiKíbv Av‡Q? _vK‡j e¨vL¨v Ki“b|

9. Avcbvi †mevi gvb wK Ab¨‡ì †P‡q fvj? n‡j ‡Kb/ wKfv‡e? (`vg/ gvb/ †mev †`qvi c×wZ/

Ab¨vb¨)

10. Kv÷gvi evov‡bvi Rb¨ Avcwb wK wK myweav †`b? (evKx‡Z weµq/fvj gvb/gv‡V wM‡q †µZvi mgm¨v †`‡L

Av‡mb/weµ‡qvIi †mev/Ab¨vb¨)

11. Avcbvi †mevi gvb AviI evov‡Z n‡j wK Kiv DwPZ ev wK ai‡bi mn‡hvwMZv Avkv K‡ib? e¨vL¨v Ki“b|

97

Questionnaire for Assessing Demand Side of BDS


’̄vb/ wVKvbv eëmvi aiY eëmvi eqm

‡Uwj‡dvb,†gvevBj, B-

‡gBj


1. Avcbvi eëmvq cwiPvjbvi (Drcv`b, weµq, DcKib msMÖn I Gi eënvi, Ab¨vb¨) Rb¨ Kvi Kvi KvQ

†_‡K †Kvb ai‡bi †mev/ mvwf©m/ civgk© wb‡q _v‡Kb? (bvg, wVKvbv, †dvb)

e¨wË/cÖwZôvb †mev/ mvwf©m/ civgk©

2. Avcwb ‡Kb †mev/ mvwf©m/ civgk© wb‡q _v‡Kb? (mn‡R cvIqv hvq/ civgk© Kv‡R jv‡M/ Kg

`vg/Drcv`b evov‡Z / weµx evov‡Z/ Ab¨vb¨) e¨L¨v Ki“b| (G‡Ki AwaK DIi Avm‡Z cv‡i)

3. GB †mev/ mvwf©m/ civgk© wKfv‡e, KLb, †Kv_vq wb‡q _v‡Kb? (civgk© MÖn‡Yi c×wZ, ¯’&vb BZ¨vw`)

4. wmR‡b GB mg¯— e¨w³/ cÖwZôv‡bi KvQ †_‡K KZ evi GB †mev/ mvwf©m/ civgk© wb‡q _v‡Kb?

5. Avcbvi gZ GB GjvKvi Avi KZRb GB †mev/ mvwf©m/ civgk© wb‡q _v‡Kb? (Zv‡ì msL¨v I % nvi)

Zv‡ì †mev/ mvwf©m/ civgk© †bevi KviYmg~n Avcbvi Rvbv Av‡Q wK?

6. GB †mev/ mvwf©m/ civg‡k©i Rb¨ wewbg‡q wKQz w`‡Z nq? n‡j wKfv‡e? e¨vL¨v Ki“b|

7. GB †mev/ mvwf©m/ civgk© †c‡q wK Avcwb mš‘ó? mš‘ó n‡j †Kb/ mš‘ó bv n‡j ‡Kb bv? (g~j¨/ ¸YMZ

gvb/ mvwf©m †èvi c×wZ/ †hvMv‡hvM `~iZ¡ / AvPib/ Ab¨vb¨)

8. Avcbvi g‡Z wKfv‡e GB me †mev/ mvwf©m/ civgk© AviI DbœZ Kiv hvq?

9. hw` †Kvb †mev/ mvwf©m/ civgk© KviI KvQ †_‡K bv wb‡q _v‡Kb Z‡e Zv †Kb †bbwb? e¨vL¨v Ki“b|

10. Avcbvi eëmv‡qi Dbœq‡bi Rb¨ hw` GB ai‡bi †mev/ mvwf©m/ civgk© Rb¨ UvKv w`‡Z nq/ LiP Ki‡Z

nq, Z‡e wK Avcwb GB †mev/ mvwf©m/ civgk wb‡eb? hw` n¨v nq Z‡e †mev/ mvwf©m/ civgk †Kv_v

†_‡K, wKfv‡e I KLb wb‡Z Pvb?)

11. GB me †mev/ mvwf©m/ civg‡k©i g~j¨ KZ n‡j fvj nq e‡j Avcwb g‡b K‡ib?

• mvaviY Pvl c×wZ/ weµx welqK civgk© :

• mvi, KxUbvkK I Gi cÖ‡qvM

• ‡ivMevjvB wbY©q I Gi cÖwZKvi :

• cÖwk¶Y :

• Ab¨vb¨ welq :

98

Market Assessment Questionnaire 1 gqgbwmsn/‡bÎ‡Kvbv AÂ†ji me&wR Pvl mve‡m±i we‡k−mY g~j¨vqY wb‡`©wkKv - 1

ZvwiL: eëmvi aib: me&wR Pvlx, me&wR Pviv Pvlx, me&wR exR Pvlx


’̄vb /wVKvbv eëmvi eqm

‡Uwj‡dvb, †gvevBj, B-‡gBj


eëmv cwiPvjbvi eY©bv

eQi wK wK me&Rx

(Pv‡li mgq mn) Pvl K…Z Rwgi

AvqZb (kZvs‡k) †gvU Drcv`b (†KwR‡Z)

†KwR cªwZ wewµ `vg

‡gvU weK&ªqg~j¨

‡gvU LiP

Drcv`b wK

evo‡Q bv

Kg‡Q? †Kb?

K…lK †Kb exR/RvZ cwieZ©b

K‡i‡Qb ev K‡ib bvB

2007

2006

2005

99

* †ekx `v‡gi Avkvq †Kvb bZzb me&Rxi Pvl ïi“ K‡i‡Qb wK ? (eb©Yv Ki“b)

Drcv`b Li‡Pi weeib

me&Rxi bvg LiP (kZvs‡k)

wmR‡b wK cwigvb / Kq evi jv‡M

LiP wK evo‡Q bv Kg‡Q? †Kb?

‡Kv_v †_‡K wK‡bb ev hš¿cvwZ fvov †bb

exR

mvi

KxUbvkK

‡mP

gvPv

kªwgK gRyix

hš¿cvwZ fvov

Abvb¨

* bZzb †Kvb hš¿cvwZ wK µq/eënvi K‡i‡Qb? K‡e? †KvbUv? †Kv_v †_‡K? Kvi civg‡k©? * cwiev‡ii Ab¨ m`mïv wK kªg w`‡q _v‡K? Gi AvbygvwbK gRyix KZ n‡Z cv‡i?

DcKi‡Yi weeib

mn‡RB wK cvIqv hvq? bvwK †Kvb mgm¨v Av‡Q?

DcKi‡Yi gvb DcKiY I Gi eënvi m¤ú‡K© Kvi Kvi KvQ †_‡K Z_¨ cvb

exR

mvi

KxUbvkK

weµ‡qi weeiY

LiP LiP †K enb K‡i ‡Kvb ga¨¯^Z¡‡fvMx? †K? †Kb?

dmj KvUv

evQvB Kib I c¨v‡KwRs

cwienb (e¨L¨v Ki“b)

me&Rxi `vg wKfv‡e wbavw©iZ nq?

100

fvj `vg cvIqvi Rb¨ ev wewµ evov‡bvi Rb¨ wK wK K‡ib?

‡µZvi weeiYKvi Kvi Kv‡Q Avcwb Avcbvi me&Rx wewµ K‡ib ?

cÖavb `yB Rb †µZv m¤ú‡K© we¯—vwiZ ejyb|

†µZv†`i KvQ †_‡K wK †Kvb civgk© ev Z_¨ cvb? wK wK? (e¨L¨v)

Pvwn`v chv©ß n‡jI †Kb †µZv †ekx †ekx cwigv‡b wKb‡Q bv?

†µZv†`i †LvR cvb wKfv‡e? ZvivB wK Av‡m bv Avcwb Ly‡R †ei K‡ib? †Kb?

bM‡` bv evKx‡Z wewµ K‡ib ? evKx‡Z wewµ Ki‡j KZ w`‡bi evKx ev KZ wKw¯—‡Z UvKv Av`vq K‡ib? evKx‡Z wewµ Ki‡j KZ UvKv †ekx †bb?

Kvi KvQ †_‡K wK‡bb Ges Kvi Kv‡Q weµq K‡ib - wP‡&Gi gva¨‡g cÖwZ av‡c g~j¨ ms‡hvRb (UvKvq) E‡j−L Ki�b|

* me&Rx Pv†l wK jvf evo‡Q? evo‡j ev Kg‡j wK wK me&Rx†Z? †Kb? (e¨vLv Ki“b) * Avcbvi GjvKvq KZRb Pvlx MZ GK eQ‡i me&Rxi Pvl ïi“ K‡i‡Q? ‡Kb? Zviv Av‡M wK Pvl KiZ? (e¨vLv Ki“b) * Avcbvi GjvKvq KZRb Pvlx MZ GK eQ‡i me&Rxi ev` w`‡q‡Q? †Kb? Zviv GLb wK Pvl K†i? (e¨vLv Ki“b)

101

eb©bv mgm¨v /m¤¢vebv mgm¨v /m¤¢vebv mswk−ô mvwf©m

cÖhyw³ / cY¨ Dbœqb 1. Ercv`‡bi †¶‡Î Avcwb wK wK ai‡bi c×wZ, cÖhyw³ I hš¿cvwZ eënvi K‡ib? †Kb K‡ib? GB me c×wZ, cÖhyw³ I hš¿cvwZ eënvi †Kv_v †_‡K wk‡L‡Qb?

2. Avcbvi wK g‡b nq me&Rxi Pv‡l wK avb, cvU BZ¨vwì Pvl †_‡K we‡kl †Kvb c×wZ ìKvi nq? (†m¸‡jv m¤ú‡K© eb©bv w`b)

3. m¤úªwZ djb evov‡bvi Rb¨ wK wK cÖhyw³, †KŠkj, c×wZ I DcKiY Aej¤^b K‡i‡Qb?

4. GB GjvKvq Avcbvi †_‡K Kvi djb †ewk nq? (Zv‡ì wVKvbv wbb) †Kb Zv‡ì djb †ewk nq? Zviv wK civgk© ev Z_¨ w`‡q mnvqZv K‡i? ‡Kb K‡i?

5. Avcbvi Rvbv g‡Z djb evov‡bvi Rb¨ wK bZzb †Kvb cÖhyw³/†KŠkj/DcKiY Rvbv Av‡Q? Avcwb wK G¸‡jv eënvi K‡ib? bv Ki‡j †Kb K‡ib bv? G¸wj †Kv_v †_‡K cvIqv †h‡Z cv‡i e‡j Avcwb g‡b K‡ib |

102

6. †µZvi Pvwn`v Abyhvqx Avcwb wKfv‡e c‡bï ¸bMZ gvb i¶v/ wbwðZ K‡ib?

eë ’̄vcbv I cÖwZôvb msµvš— Z_¨vejx 1. Avcwb GKvB wK eëmv †`Lv‡kvbv K‡ib? Ab¨ Avi †K †K eëmvq mn‡hvwMZv K‡i _v‡K (EcKib †Kbv, Rwg ‰Zix, †mP, AvMvQv †Zvjv, KxUbvkK ‡`qv, ZË¡veavb, wnmve ivLv, evRviRvZKib, eëmv cwiKíbv)? e¨vL¨v Ki“b| (†Kvb mgm¨v?)

2. Avcbvi eëmvi †Kvb †Kvb cÖwµqvi mv‡_ gwnjv kªwgKiv hy³ (Rwg ‰Zix, AvMvQv †Zvjv, KxUbvkK ‡`qv, dmj †Zvjv, evQvBKib, Ab¨vb¨)? DËi bv n†j †Kb bv?

3. cY¨ Ercv`b/weµq cÖwµqvq Avcwb Qvov wK evB‡ii Ab¨ †KI hy³ Av‡Q †h Avcbvi eëmvi mv‡_ mivmwi m¤ú„³ bv? hw` _v‡K, Zvn‡j †Kb Avcwb A‡bï mnvqZv wb‡”Qb? - e¨vL¨v Ki“b|

4. eëmv evov‡bvi Rb¨ eë ’̄vcbv welqK wK wK fvj Ávb _vKv DwPZ e‡j Avcwb g‡b K‡ib ? Avcbvi Ávb evov‡bvi cÖ‡qvRb Av‡Q wK? (_vK‡j †mUv †Kvb †Kvb †¶‡Î )

A_v©qb msµvš— Z_¨vejx 1. Avcwb wK wb‡Ri UvKvq eëmv K‡ib ? eëmv cwiPvjbvq cywR ev bM` UvKvi wK †Kvb mgm¨v Av‡Q?

2. cywRi mgm¨v n‡j †Kv_vq Kvi Kv‡Q c~wRi Rb¨ wM‡q‡Qb ? (e¨vsK, GbwRI, eÜz, gnvRb, Ab¨vb¨) wKfv‡e avi wb‡q‡Qb ev †Kb avi cvb bvB ? wKiKg mgm¨vi m¤§yLxb n‡q‡Qb ? - e¨vL¨v Ki“b

103

bxwZgvjv msµvš— Z_¨vejx 1. eëmv cwiPvjbvq miKvix bxwZgvjv m¤ú©‡K Avcbvi wK †Kvb avibv Av‡Q? miKvix †Kvb bxwZ wK Avcbvi eëmv cwiPvjbvq mnvqK n‡”Q ? †Kvb bxwZ wK cÖwZeÜKZv m„wó Ki‡Q?

2. eëmv cwiPvjbvq I m¤cÖmvi‡b †Kvb †Kvb wbqgKvbyb mnvqK f~wgKv ivL‡Z cv‡i e‡j Avcwb g‡b K‡ib?

eëmvi cwi‡ek msµvš— Z_¨vejx 1. AeKvVv‡gvMZ mgm¨v eëmvi cwiPvjbvq wKfv‡e evavuMÖ¯’ Ki‡Q? (we`ÿr, cvwb, †Uwj‡hvMv‡hvM, ¸`vg, †hvMv‡hvM eë ’̄v - iv¯—v, evRvi, Ab¨vb¨ )

2. GB mgm¨v¸wj wKfv‡e mgvavb Kiv †h‡Z cv‡i e‡j Avcwb g‡b K‡ib?

eëmvwqK mwgwZ msµvš— Z_¨vejx 1. Avcwb wK †Kvb mwgwZi mv‡_ hy³? (mwgwZi bvg I wVKvbv )

2. mwgwZ wK wK KvR K‡i _v‡K? mwgwZi m`m¨ nIhvq wK jvf n‡”Q? mwgwZ Avcbv‡ì eëmv evov‡bvi Rb¨ wK wK Ki‡Z cv‡i?

104

mvgvwRK I eëmvwqK bxwZgvjv / `vwqZ¡‡eva msµvš— Z_¨vejx cwiev‡ii AskMÖnb ,gwnjv I wkï kªwgK wb‡qvM,cvwikªwgK, Kv‡Ri mgqKvj

cwi‡e‡ki Eci ivlvqwbK EcKi‡bi (KxUbvkK) cÖfve : ivlvqwbK EcKib eënv‡ii d‡j wK †Kvb mgm¨v †`Lv w`‡”Q ?

mwVK fv‡e bxwZgvjv †g‡b eëmv Kivi †¶‡Î mgm¨v wK wK ?

Avcbvi g‡Z Avcbvi eëmvi cÖavb wZbwU mgm¨v/m¤¢vebv

Avcbvi g‡Z GB mve‡m±‡ii cÖavb wZbwU mgm¨v/m¤¢vebv

105

Market Assessment Questionnaire 2 gqgbwmsn/‡bÎ‡Kvbv AÂ†ji me&wR Pvl mve‡m±i we‡k−mY g~j¨vqY wb‡`©wkKv - 2

ZvwiL: eëmvi aiY: DcKiY we‡µZv (exR, mvi, KxUbvkK), nvU/evRv‡ii

†Lvjv exR we‡µZv, ’̄vbxq LyPiv me&wR we‡µZv, dwoqv, †ecvix /cvBKvi, AvoZ`vi


’̄vb /wVKvbv eëmvi eqm

‡Uwj‡dvb,†gvevBj B-‡gBj

KZ Rb Kgx© ’̄vqx: A¯’vqx: cvwievwiK:

eëmv cwiPvjbvi eY©bv

eQi

‡gvU wewµ - cÖwZ gv‡m (me&Rx/

DcKi†Yi bvg mn)

cÖavb †µZv Kviv µqg~j¨ weK&ªqg~j¨ ‡gvU LiP

wewµ wK evo‡Q bv Kg‡Q? †Kb?

2007

2006

2005

106

* Avcbvi GjvKvq me‡P‡q †ekx Pvl nq Ggb wZbwU me&Rxi bvg ejyb| †Kb G¸‡jv †ekx †ekx Pvl nq? &(eb©Yv Ki“b)

eb©bv mgm¨v /m¤¢vebv mgm¨v /m¤¢vebv mswk−ó mvwf©m ‡ePv †Kbv msµvš— Z_¨vejx

1. †Kb †µZviv Avcbvi KvQ †_‡K cY¨ µq K‡i? Avcbvi †gvU eëmvi KZ Ask me&Rxi msµvš—? (DcKiY we‡µZvi Rb¨)

2. †µZv†ì †LuvR cvb wKfv‡e? ZvivB wK Av‡m bv Avcwb Lyu‡R †ei K‡ib? †Kb?

3. Avcbvi wK †Kvb gwnjv †µZv Av‡Q? hw` _v‡K Zvn‡j Zv‡ì bvg Ges wVKvbv ejyb |

4. ‡ePv †Kbvi †¶‡Î bM‡` bv evKx‡Z wewµ K‡ib? evKx‡Z wewµ†Z - (K.) wK mvavib g~‡jï †P‡q †ekx `v‡g wewµ K‡ib? ‡Kb? (L.) wewµi †gvU KZ Ask evKx‡Z wewµ K‡ib?

5. cb¨ wKfv‡e cwienb K‡ib ? ‡ePv †Kbvi †¶‡Î cwienb LiP †K enb K‡i?

6. c†Yï µqg~j¨/ weµqg~j¨ Avcwb wKfv‡e wbav©ib K‡ib? e¨vL¨v Ki“b|

7. MZ wZb eQ‡i Avcbvi c‡bï `vg wK iKg †e‡o‡Q ev K‡g‡Q? ‡Kb †e‡o‡Q ev K‡g‡Q ? (Kgc‡¶ wZbwU cÖavb c‡bï wZb eQ‡ii g~j¨ msMÖn Ki‡Z n‡e) e¨vL¨v Ki“b

8. c†Yï wewµ evov‡bvi Rb¨ wK wK cš’v Aej¤^b K‡ib ? (e¨vLv Ki“b )

µq I DcKiY mieivn msµvš— Z_ëjx 1. Avcwb †Kv_v †_‡K wK wK ai‡bi DcKiY ev cY¨ µq K‡ib? †Kb ILvb †_‡K msMÖn K‡ib? DcKiY ev cY¨ msMÖ†ni ‡¶‡Î †Kvb ¸i“Z¡c~Y© cwieZ©b wK G‡m‡Q? (gvb, `vg Ab¨vb¨)

107

2. †Kbvi †¶‡Î bM‡` bv evKx‡Z †K‡bb? †Kb?

3. †Kbvi mgq wK wK mgm¨vq co‡Z nq? c†bï ¸bMZ gvb, `vg, mgqgZ cvIhv, civgk© GBme wel†q wK Avcwb mšy—ó? (e¨vL¨v Ki“b)

4. Avcwb wKfv‡e Avcbvi c‡Yï ¸bMZ gvb wbwðZ K‡ib ?

Kvi KvQ †_‡K wK‡bb Ges Kvi Kv‡Q weµq K‡ib cÖwZ av‡c g~j¨ ms‡hvRb E‡j−L Ki�b

eëmv I cY¨ Dbœqb msµvš— Z_¨vejx 1. bZzb †Kvb AvaywbK DcKib, RvZ I c×wZ m¤^‡Ü Avcbvi wK †Kvb avibv Av‡Q, hv Avcbvi eëmv e„w×‡Z mvnvh¨ Ki‡Z cv‡i ?

2. Avcwb wKfv‡e/ †Kv_v †_‡K AvaywbK DcKib, RvZ I c×wZ m¤^‡Ü Rv‡bb?

3. bZzb cb¨ wewµi ‡¶‡Î †Kv¤úvwb/Ab¨vbïv Avcbv‡K wKfv‡e mn‡hvwMZv K‡i ?

108

4. eëmv evov‡bvi Rb¨ wK wK bZzb cY¨/cÖhyw³/DcKiY ìKvi Av‡Q e‡j g‡b K‡ib? (e¨vL¨v Ki“b)

bxwZgvjv msµvš— Z_¨vejx 1. eëmv cwiPvjbvq miKvix bxwZgvjv m¤ú©‡K Avcbvi wK †Kvb avibv Av‡Q? miKvix †Kvb bxwZ wK Avcbvi eëmv cwiPvjbvq mnvqK n‡”Q ?

2. miKvix †Kvb bxwZ wK Avcbvi eëmv cwiPvjbvq cÖwZeÜKZv m„wó Ki‡Q?

2. eëmv cwiPvjbvq I m¤cÖmvi‡b †Kvb †Kvb wbqgKvbyb mnvqK f~wgKv ivL‡Z cv‡i e‡j Avcwb g‡b K‡ib?

eëmvi cwi‡ek msµvš— Z_¨vejx 1. AeKvVv‡gvMZ mgm¨v eëmvi e„w×‡Z wKfv‡e evavuMÖ¯’ Ki‡Q? (we`ÿr, cvwb, †Uwj‡hvMv‡hvM, ¸`vg, †hvMv‡hvM eë ’̄v - iv¯—v, evRvi, Ab¨vb¨)

2. GB mgm¨v¸wj wKfv‡e mgvavb Kiv †h‡Z cv‡i e‡j Avcwb g‡b K‡ib?

eëmvi mwgwZ msµvš— Z_¨vejx 1. Avcwb wK †Kvb mwgwZi mv‡_ hy³? (mwgwZi bvg I wVKvbv )

2. mwgwZ wK wK KvR K‡i _v‡K? mwgwZi m`m¨ nIhvq wK jvf n‡”Q? mwgwZ Avcbv‡ì eëmv evov‡bvi Rb¨ wK wK Ki‡Z cv‡i?

mvgvwRK I eëmvwqK bxwZgvjv / `vwqZ¡‡eva msµvš— Z_¨vejx cwiev‡ii AskMÖnb ,gwnjv I wkï kªwgK wb‡qvM,cvwikªwgK, Kv‡Ri mgqKvj

109

cwi‡e‡ki Eci ivlvqwbK EcKi‡bi (KxUbvkK) cÖfve : ivlvqwbK EcKib eënv‡ii d‡j wK †Kvb mgm¨v †`Lv w`‡”Q?

mwVK fv‡e bxwZgvjv †g‡b eëmv Kivi †¶‡Î mgm¨v wK wK ?

Avcbvi g‡Z Avcbvi eëmvi cÖavb wZbwU mgm¨v/m¤¢vebv

Avcbvi g‡Z GB mve‡m±‡ii cÖavb wZbwU mgm¨v/m¤¢vebv

110