1.1 Introduction of study: This is an academic research under the course of Marketing
Research. As aim of this research to know why potato price becomes high in Bangladesh. It
was necessarily required to get help of different sources. Like
i.
i.
Primary Searching for issues which are responsible worldwide for price-hike of
potato,
ii.
iii.
On basis of collected data from field survey, an analytical software SPSS 16 has been used to
make a database and it helped to analyze:
i.
Frequency,
ii. T-test,
iv. Factors.
1.2 Background of the Study: Before to discuss that why this study necessary. Its a general
concern that potato is one kinds of food-crop which can easily adapt the effect of global
warming. However, its potential food and in Bangladeshi circumstances, every season giving a
huge production of potato. So to finding the responsible factors that affects potato-price only
can allow to take action.
1.3 Object of the Study: Main objective I to bring the potato easily available in both Pre-harvest
and Post-harvest season. And it only possible after knowing for which it increase and also
factors which are threatening its spontaneous production.
And to conduct main objective, many sub-objectives like knowing
What the factor or factors the respondent has mostly experienced at potato market?
Which thing comes at your mind first, when you think about reason of price-hike of
potato?
ii.
What answer you have if one saying that increasing needs cause price-hike of
potato?
iii.
How you rate if one asking that can climate becomes a reason of higher price?
iv.
v.
How you mark that if one saying that natural storage deals with cold-storage?
vi.
vii.
Which level of marking you wish to do for if saying processing loss cause price-hike?
viii.
ix.
x.
xi.
xii.
xiii.
xiv.
1.5 Hypothesis: Through the research process. Another big trouble was that many people has
skipped some ratings which belong to the Likert Scale. Many respondents were unable to
answer. Because they were confused or they heard some of potential reason for the first time.
Some are refused saying that they are busy and cant recognize any reason behind price-hike.
b. Factors: Firstly, was to gather relevant pdf and point out supported features and message.
Also important was to concern the respond that what type of survey is this and how to respond,
Responsibility was to cope-up step by step to make a highly productive
1.7 Significance of the study: This study is on a product which are highly needy for day to day
life. An agricultural product which can easily adopt the Global Worming.
This important for the Producer, Daily-user, Cold-storage, Food-Industry, Exporter, Importer,
Other Stock keeper, Upcoming projects etc.
Because it related to find the ultimate reason to find the reason for what people face high
payment of-potato.
From producer till final User can avoid price-hike of potato only knowing reasons of it. And as
the middle-man user, Industries, Importer, Exporter, Wholesaler, Retailer etc. can aware about
reason of price-hike and can take adequate precautionary steps.
1.8 Limitations of The study: Many hampering issues were there while did research.
Its a quantitative research. However the priority is on basis of majority of response. For
example, Most of the people believe that potato price increase for Natural Reason. So it will
be highlighted. But its not the only reason, as we appreciate. Limitation also because of
Inability and Unwillingness of target people. This study was not conducted all around the
Bangladesh.
Main production area North-Bengal and Barisal is included under this research.
Chapter-2
Literature Review:
A report has been prepared on the Cost of Potato Production for Idaho with Comparisons to
2012 intentionally compared cost of potato in 2013 with year 2012 and for Idaho. It has
founded that climate and soil had major reason of price hike in potato in 2013. One tears gap
was resulting from the narrowed firm size and devoted acres. Three producing Region were
affected by this. We found that guilty budget for non-storage & storage potato has created
upward price. Changing fuel cost had effects on different price of potato fron2012 to
2013(Paul, 2013).
Another Conducted by Ayub Hossain and Monayem Miah on study Post Harvest Losses and
Technical Efficiency of Potato Storage Systems in Bangladesh was carried out with the support
of the NFPCFP, USAID, FAO, and Peoples Republic of Bangladesh. This study shows finger on
linkage of storage system, processing loss and buffer stock as cause of price hike in off-season.
It stated that total pre-storage loss was 8.15% and post-harvest loss 15.5% probably. In
Bangladesh where storage of Comilla use 100% plus capacity to store potato. Other remaining
zones store less than their storage capacity. In Bangladesh the average capacity utilization in
all areas was 93.49%. Potato price growing for many hand before reaching to its final consumer
(Ayub & Monayem, 2009).
Dr. Musharraf on His report on Potato Flakes & Powder Including Business Feasibility Studies
and Proposed Action Plans founded that Bangladesh geologically is not friendly to foreign
earning by exporting potato. However although it is possible to meet potato demand
worldwide. Geology has restriction on potato marketing. At Munsigonj in Bangladesh, Cost of
production liable to motivate price hike (Musharraf, 2013).
An annual Report on Market Intelligence System Baseline Data for Potato & Onion referred
International Position of Potato within 2010 and 2011. As a 2nd positioned potato producer
country. India also victim of lake of storage and pre-storage loss. High distinction between
production area and market cause price hike in Potato. Ancient Cultivation method and
insufficiency of Governmental support causes price hike in Indian potato (SFSE, 2012).
Some findings from Potato Value Chain Analysis and Development in Ethiopia show that it is
because of integration, transaction payment, faithless mood, inefficiency and high transaction
Cost (Bezabih and Mengistu, 2011).
Marketing and storage problems are serious constraints on the development and growth of
the potato industry in Bangladesh (Potato and Sweet Potato in Bangladesh). Potatoes are
perishable and bulky, and therefore farmers are compelled to dispose of their produce
immediately after harvest. The harvest season for potato is very brief and the supply during
the period of harvest always exceeds the demand, causing prices to drop. Where there are
cold storage facilities, farmers can keep potatoes and wait for prices to rise. Cold storage
facilities therefore are very important to increasing the potato production in Bangladesh
(Ayubur, 1990).
The supply and demand factors affect the farm level price. On the demand side, per capita
consumption has decreased by almost a half, and the use of potatoes has shifted from
consumption of table stock potatoes towards greater levels of processed potato products. On
the supply side, domestic production levels of potatoes decreased by just over 30%, whilst
grower numbers decreased by greater than 75% over the same period. Against this background
of significant changes in domestic consumption levels and patterns and domestic production
of potatoes this paper examines the effect of these factors on potato price levels and variability
(EAAE Seminar, 2012).
Large middleman margins that restrict prices received by poor farmers in less developed
countries (LDCs) are often believed to constrain growth and poverty reduction in these
countries (Sandip et al, 2013).
Chapter-3, Methodology:
3.1 Research Type: Basically two types of. One Qualitative research and another Quantitative
research.
Qualitative research is a major academic research and the basis of awarding thesis and
dissertation (For Making a Doctorate) Worldwide. It produce information only on the particular
cases studies.
On the other hand, Quantitative research is a systematic empirical of observable phenomena
via statistical, Mathematical or computational technique. Its a research in which researcher
analyze the data with statistics. And later the mathematical observation.
Although this research is an academic research. But use of scaling technique and statistical
analyze to determine data frequency, Cross table analysis, t-test, Regression Rate, Discriminant
Analysis, Factor analysis make it absolutely a Quantitative research.
Sources:
Primary data is also called original data which are founded by researcher. Researcher first
conceptualize this type of data. Its much updated type.
Secondary data is that kinds of data which are collected by someone other than the user.
Often its backdated.
Research on Reason of Price-hike of potato in Bangladesh is based on primary data. Because
its an earlier research (in Bangladesh) for potato price. Variables are noted concentrating on
basic and potential reasons.
Sampling Size: Minimum rate 30, for more accuracy 100, Incidence rate 80% or 0.8 and
Completion rate 90% or 0.9. However later the sample size was upgraded by 20 more copies.
Technique: Two types of sampling techniques, basically. Nonprobability sampling and
Probability sampling.
a. Nonprobability sampling relies on the personal judgment of the researcher rather than
chance to select sample elements.
b. Probability sampling is a sampling in which each of the elements of population has a fix
probabilistic chance of being selected for the sample. Probability sampling divided into:
Simple random sampling: Each element in the population has a known and an equal probability
of selection. Every elements are selected independently. Sample is drawn by a random
procedure,
Systematic Sampling: A technique in which the sample is chosen by selecting a random starting
point. And then picking them for in succession form,
Stratified Sampling: Its a two-step process in which the population is partitioned into subpopulation.
Cluster Sampling: The target population is first divided into mutually exclusive and collectively
exhaustive subpopulations called clusters.
Consideration here for Simple Random Sampling. Through this research it is clarified that
majority individual of target group appreciate same reason as responsible for price-hike of
potato.
The questionnaire was designed carefully and corrected by Questionnaire Design Checklist
from Book Table 10.1. Sentences are constructed with an easy and friendly form. So that
respondent can easily understand. Later it has converted into Bengali. And thus it drew a more
cheerful survey environment.
Frequency:
4.1 TOM Reason
Frequency Percent
Valid Percent
Cumulative Percent
55
45.8
45.8
45.8
Man Created 65
54.2
54.2
100.0
Total
100.0
100.0
Valid Natural
Reason
120
This table Top of the Mind bearing that within 120 people, 55 or 45.8% people think that
Nature influence price-hike of potato. Remaining 65 or 54.2% consider its Man Created.
Confidence
Interval
Mean
Climate_Cause_Price_Hike
Soil_Health_Effcts_On_Potat
o_Price
Natural_Storage_Deals_Wit
h_Cold_Storage
Geological_Fact_Cause_Pric
e_Hike
Processing_Loss_Cause_Hig
her_Price
Production_Cost_Increase_P
otato_Price
Seeds_Cause_Price_Hike
Fertilizer_Indirectly_Influenc
e_Price_Hike
Insects_And_Diseases_Influ
ence_Price_Hike
Reselling_Liable_For_Price_
Hike
Decreasing_Producer_Inspir
e_Price_Hike
Pre_Harvestal_Loss_Cause_
Price_Hike
of
Difference
df
Upper
2.635
119
.010
.308
.08
.54
2.707
111
.008
.295
.08
.51
1.202
108
.232
.156
-.10
.41
3.392
110
.001
.306
.13
.49
6.072
115
.000
.603
.41
.80
2.996
114
.003
.330
.11
.55
-1.581 115
.117
-.172
-.39
.04
2.242
117
.027
.246
.03
.46
6.803
113
.000
.675
.48
.87
15.558 118
.000
1.345
1.17
1.52
2.345
116
.021
.239
.04
.44
6.120
116
.000
.641
.43
.85
the
t-test calculated and critic value is from book and Distribution Table-4. Here 118 degree of
freedom and 0.025 is Upper Tail Area. t/cut-off/Critic value is 1.9799. The above table 4.2 gives
calculated values of t. The decision rule is H0 will be rejected if t-calculated value > t-critic
value. By comparing calculated value with critic value it can be seen that apart from the size
and cove all the T-Deviation are significant at 0.05 level. Thus H0 cannot be rejected for size
and cove.
Regression: Here focus is on Table Model summary, ANOVA and Coefficient. Model Summary:
Here we will observe Column R-square and Adjusted R Square. R Square will must show 60%
of regression and Adjusted R Square need to stay very closer of R Square table value.
4.3 Model Summary
Model R
1
.487a
.238
.808
.116
Decreasing_Producer_Inspire_Price_Hike,
Processing_Loss_Cause_Higher_Price,
Fertilizer_Indirectly_Influence_Price_Hike,
Soil_Health_Effcts_On_Potato_Price,
Climate_Cause_Price_Hike,
Reselling_Liable_For_Price_Hike,
Insects_And_Diseases_Influence_Price_Hike,
Production_Cost_Increase_Potato_Price
b. Dependent Variable: Geological_Fact_Cause_Price_Hike
Here Model-1 R (Regression) rate is 48.7%, Multiple R Square is 11.6% and it means. Thus its
possible to tell that 11.6% of total variability in earning is explained by the model.
4.4 ANOVAb
Model
1
Sum of Squares
df
Mean Square F
Sig.
Regression 14.053
11
1.278
.047a
Residual
45.083
69
.653
Total
59.136
80
1.955
Decreasing_Producer_Inspire_Price_Hike,
Processing_Loss_Cause_Higher_Price,
Fertilizer_Indirectly_Influence_Price_Hike,
Soil_Health_Effcts_On_Potato_Price,
Climate_Cause_Price_Hike,
Reselling_Liable_For_Price_Hike,
Insects_And_Diseases_Influence_Price_Hike,
Production_Cost_Increase_Potato_Price
b. Dependent Variable: Geological_Fact_Cause_Price_Hike
This table also showing Degree of Freedom. F statistics is 1.955. Which has no explanatory
power. Final figure is for Significance. Its .047 in average or 4.7%. Which is less than tolerable
5%. Its a strong evidence to reject the Null
4.5 Coefficient
Model
1
(Constant)
Climate_Cause_Price_
Hike
Soil_Health_Effcts_On_
Potato_Price
Natural_Storage_Deals
_With_Cold_Storage
Processing_Loss_Cause
_Higher_Price
Production_Cost_Incre
ase_Potato_Price
Seeds_Cause_Price_Hi
ke
Fertilizer_Indirectly_Inf
luence_Price_Hike
Insects_And_Diseases_
Influence_Price_Hike
Reselling_Liable_For_P
rice_Hike
Decreasing_Producer_I
nspire_Price_Hike
Pre_Harvestal_Loss_Ca
use_Price_Hike
Unstandardized
Standardized
Coefficients
Coefficients
Std. Error
2.604
.898
-.201
.087
.027
Sig.
2.899
.005
-.293
-2.306
.024
.087
.037
.307
.760
-.086
.075
-.145
-1.142
.257
.112
.095
.133
1.174
.244
.095
.102
.130
.929
.356
-.039
.086
-.054
-.454
.651
-.047
.091
-.066
-.514
.609
.109
.112
.129
.977
.332
.137
.123
.131
1.108
.272
-.204
.089
-.262
-2.292
.025
.216
.098
.263
2.193
.032
Beta
This is the most interesting of all. However, Climate Cause Price Hike has 2.899 t-statistic and
Significance .5%, Soil Health Effects on Potato Price has t-value -2.306 and Significance 2.4%,
Natural Storage Deals with Cold Storage has t-value -1.142 and significance .257 or 25.7%,
Processing Loss Cause Higher Price 1.174 and significance 24.4%. Here three more minus tstatistics are for Seeds Cause Price Hike is -.454 and Fertilizer Indirectly Influence Price Hike
is -.514 and for Decreasing Producer Inspire Price Hike is -2.292 and significance .025 or 2.5%.
Factor Analysis:
4.6 KMO and Bartlett's Test
Kaiser-Meyer-Olkin
Measure
of
Sampling
Adequacy.
Bartlett's
Sphericity
Test
of Approx. Chi-Square
.494
154.279
df
66
Sig.
.000
Bartletts test of Sphericity need to evaluate multicollinearity test. Its a part of Factor
Analysis. Here .494 as a numerical report. Significance of Bartletts Test of Sphericity is 0. KMO
and Bartlett's Test ideally bears 70% of significance.
Loadings
pon
of Cumulativ
ent Total
Variance e %
Loadings
of Cumulativ
of Cumulat
Total
Variance e %
Total
Variance ive %
2.035 16.957
16.957
2.035
16.957
16.957
1.755
14.623
14.623
1.965 16.371
33.328
1.965
16.371
33.328
1.721
14.345
28.968
1.609 13.411
46.739
1.609
13.411
46.739
1.540
12.835
41.803
1.191 9.925
56.664
1.191
9.925
56.664
1.480
12.337
54.140
1.141 9.506
66.170
1.141
9.506
66.170
1.444
12.030
66.170
.851
7.094
73.264
.719
5.996
79.260
.713
5.941
85.201
.594
4.952
90.153
10
.468
3.900
94.053
11
.436
3.637
97.690
12
.277
2.310
100.000
The table showing 5 selected variables and different Eigen Values. Here variables are selected
when their Eigen Values are 1 or more. And its the reason of components 1,2,3,4, and 5 are
selected. However, component 6 to 12 has distinct constructs. Thus it summarized with 5
components which has an Eigen value-1. Values of Extraction Sum of Squared Loadings can
gives un-rotated solution. Here first five components are explained 16.957% of the variance.
So height Cumulative variance is 66.170% or .66170 in average.
Climate_Cause_Price_Hike
Soil_Health_Effcts_On_Potat
o_Price
Natural_Storage_Deals_With
_Cold_Storage
Geological_Fact_Cause_Pric
e_Hike
Processing_Loss_Cause_High
er_Price
Production_Cost_Increase_P
otato_Price
Seeds_Cause_Price_Hike
Fertilizer_Indirectly_Influenc
e_Price_Hike
Insects_And_Diseases_Influe
nce_Price_Hike
Reselling_Liable_For_Price_
Hike
Decreasing_Producer_Inspir
e_Price_Hike
Pre_Harvestal_Loss_Cause_P
rice_Hike
-.272
.733
.121
-.093
.278
.157
.718
.009
.113
-.181
.267
.370
.526
-.140
.435
.023
-.031
-.149
.777
-.122
.144
.048
.067
.709
.256
.809
.201
-.127
.203
-.075
.502
-.172
.145
-.024
-.497
.786
-.110
.067
-.035
.026
-.003
.199
.843
.073
-.062
-.062
-.109
.071
.044
.825
-.062
-.455
.623
-.120
.076
-.177
.432
.276
.517
-.346
Here, 5 components that the factor analysis has identified. Factor 1 has height coefficient .809
for Potato Price Increase Price-hike, Second height is .786 for fertilizer indirectly influence
price-hike and Third height is .502 for seeds Cause Price Hike.
Factor 2 has height .733 for Climate Cause Price-hike, then .718 for Soil Health Effects on
Potato Price.
Factor 3 has height value .843 of Insects and Diseases issue, secondly .623 for Decreasing
Producer Inspire Price-hike, thirdly .526 for Natural Storage Deals with Cold Storage.
Factor 4 height value .777 for Geological Factor Cause Price-hike, .709 for Processing Loss
cause price-hike, .517 for Pre-harvest Loss cause Price-hike.
Factor 5 has height value .825 for Reselling Liable for Price-hike.
5.2 Conclusion
Potato is a potential food. It will rational if potato will be considered as the food of future. Aim
of this report was to find the factor that limiting potato availability. With a better wish
tomorrows food market will become friendlier and each and every person will have more
capability to buy potato.
References:
1. Paul E. Patterson (2013). 2013 Cost of Potato Production for Idaho with Comparisons
to 2012 Project submitted to The Cost of Potato Production Advisory Committee and
the Idaho Potato Commission R & E Committee, Series No. 13-02, PP 1-3
2. Md. Ayub Hossain and M. A. Monayem Miah (2009). Post-Harvest Losses and Technical
Efficiency of Potato Storage Systems in Bangladesh Bangladesh Agricultural Research
Institute, Report CF # 2/08, Issue: Post Harvest Losses and Technical Efficiency of Potato
Storage Systems in Bangladesh, P 4-5
3. Dr. Musharraf Hussain (2013). Potato Flakes & Powder Including Business Feasibility
Studies and Proposed Action Plans To: Bangladesh INSPIRED, Issue: Potato Flakes &
Powder Including a Business Feasibility study and Proposed Action Plans, PP 5, 42
4. By: Small Farmers Agribusiness Consortium (2012). Baseline Data for Potato and
Onion Compiled By Indian Agribusiness Systems Pvt. Ltd, Issue: Baseline data for
Potato and Onion, P 13
5. Bezabih Emana and Mengistu Nigussie (2011). Potato Value Chain analysis and
Development in Ethiopia, Submitted to International Potato Center CIP-Ethiopia, Issue:
Better Potato for Better Life, PP 55-59
6. Dr.MD. Ayubur Rahman (1990). Potato and Sweet Potato in Bangladesh, The CGPRT
Centre Working Paper, Series-7, Issue: analyses the nutritional value of potato and
sweet potato in the Bangladesh diet and examines the current situation and future, PP
25-39
7. Thorne F (2012). Price Volatility and Farm Income Stabilization, Paper of 123rd EAAE
Seminar, Issue: Potato Prices as Affected by Supply and Demand Factors, P 1
8. Sandip Mitra, Dilip Mookherjee, Maximo Torero and Sujata Visaria (2013). An
Experiment with West Bengal Potato Farmers, International Food Policy and Research
Institute IFPRI, Issue: Experiment with West Bengal Potato Farmers, PP 1-2
Variable List:
1. Climate
2. Soil
3. Storage Capacity
4. Geological Restriction
5. Processing Loss
6. Production Cost
7. Seeds
8. Fertilizer
9. Insecticides
10. Effects of potato insects
11. Effect of Potato Disease
12. Effect of middlemen
13. Buffer Stock/ Stock for selling at high price
14. Decrease in Growers Number
Appendix
The questionnaire is designed to drag the reason of Price hike in potato in Bangladesh. It is an
academic research. Please answer spontaneously and appreciate to extract the reasons which
are responsible to world wide price-hike in potato. Your answer will not be published and its
a commitment to keep secrecy.
When thinking about the reason of price-hike in potato. Fact that comes first at your mind:
o Natural
o Man created
Do you believe that rapid growing demand for potato is causing price-hike?
O Yes
O No
Strongly Disagree
Disagree Neutral
Agree Strongly
Agree
Storage
Geological Fact Cause Price Hike
Price
Seeds Cause Price Hike
Hike
Price Hike
Reselling Liable For Price Hike
Hike
Pre-harvest Loss Cause Price Hike
Thanking You