OPPORTUNITY AND CHALLANGES OF RICE VALUE CHAIN IN THE SELECTED AREA OF MYMENSINGH DISTRICT

Abstract

This study was conducted to analyze the supply chain of rice in selected areas of Mymensingh district. The objectives of the study were to estimate value addition of rice by different actors, to examine the activities related to value addition and to identify the constraints and opportunities of rice value chain. Two Upazilas namely Fulbaria and Muktagacha were selected purposively for collecting data. To serve research objectives 40 farmers, 20 paddy traders, 12 rice millers and 13 rice traders were selected by purposive sampling. Data were collected during March to May 2019. The study found that the value chain actors were farmers, paddy traders (Farias, Beparies), rice millers and rice traders (Beparies and retailers). Value chain started from harvesting paddy and ended when rice was sold to the ultimate consumers. Farmers could earn on an average Tk 3800.00 per acres by cultivating paddy. The farmers disposed their production for family consumption, gift and kind payment to relatives, seed and sold to markets. They added value of Tk. 100.5, Tk. 100.00 and Tk. 100.00 for per quintal paddy by drying, storing and selling, respectively. Most of the farmers did not realize the value adding opportunities due to constraints such as high marketing cost due to poor transportation system, lack of market information etc. Paddy traders collected paddy from the farmers and supplied to the rice millers. The traders added value of average Tk. 127.00/quintal paddy. Rice millers had to incur marketing cost, milling cost and selling cost. These costs were Tk. 77.03, Tk. 68.38 and Tk 37.25 per quintal paddy, respectively. Rice millers added about 18.68% value of total marketing cost. Rice traders were the final value chain actors and added about 6.50% value with rice purchase price. Since, this study was done only in Mymensingh district, the policy makers should be very careful for any policy decisions based on the findings of this study. However, this study helps to identify the scenario in the rice value chain in Mymensingh district.