MARKETING EFFICIENCY AND TRANSACTION COST ANALYSIS OF MAIZE IN SOME SELECTED AREAS OF DINAJPUR DISTRICT

Abstract

The present study was undertaken to determine marketing efficiency and transaction cost analysis of maize from Dinajpur district of Bangladesh. This study was based on a survey of 20 farmers and 40 maize traders from Birgonj and Biral upazila of Dinajpur district. Primary data were collected from maize farmers and traders during the months of August and September, 2013. The study identified five most prominent channels of maize marketing. The channels were i) FarmersFarias-wholesalers-Aratdars-feed mills ii) Farmers-wholesalers-Aratdars-feed mills iii) FarmersAratdars-feed

mills iv) Farmers-wholesalers-feed mills, and v) Farmers- Farias-Aratdars-feed mills. Among these channels highest amount of maize (45%) moved through channel III (Farmers-Aratdars-feed mills) and lowest (5%) through channel I (Farmers-Farias-wholesalersAratdars-feed mills). The producers’ share to consumers’ price (89.98%) was found to be highest

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channel III and lowest in channel I (75.15%). Marketing cost and marketing margin were lowest for channel III (Tk. 102.77 and Tk. 190, respectively) and highest for channel I (Tk. 312.85 and Tk. 470 respectively). The highest cost item was transportation (46.43%) and lowest was information search (0.95%). Marketing costs and marketing margins were highest for wholesalers (46.30% and 42.55%) respectively and lowest for Farias (20.84% and 17.02%) respectively. The deviation between maximum and minimum price of a month was highest (Tk. 257.86) in channel IV and lowest (Tk. 197.86) in channel I. Seasonal price variability was highest (74.85) in channel I and lowest (26.15) in channel III. Channel III (Farmers-Aratdars-Feed mills) was the most efficient channel. The main transaction cost items were search cost, screening cost, bargaining cost, monitoring cost and enforcement cost. Total transaction cost incurred by the intermediaries was Tk. 33.02 per 100 kg of maize. Search cost incurred by the intermediaries was Tk. 3.80 for 100kg of maize which was 11.52% of total transaction cost. Screening cost, monitoring cost, bargaining cost and enforcement cost were Tk. 10.26 (31.08%), Tk. 10.50 (31.80%), Tk. 8.48 (25.67%) and Tk. 0 (0%), respectively. Transaction cost for wholesalers was highest (39.10%) and lowest (30.13%) for Farias. Marketing problems of farmers and intermediaries were low local demand, poor transportation facilities, market toll, lack of credit facilities, absence of storage facilities, lack of adequate market information and lack of available market place. Establishment of feed mills nearest to the production point, advertising through electronic and print media, improvement of road and communication facilities, lessening of market toll, credit facilities from credit institution, improvement of storage facilities and quick and appropriate market were the possible measures to solve those problems.