Agricultural Market Assessment Report

Barisal and Noakhali Region

Rural Enterprise Development (RED),

Market Infrastructure Development Project in Charland Region
(MIDPCR),
Local Government Engineering Department (LGED)
International Development Enterprise- Bangladesh (IDE-B)

1|P a g e
 Table of Contents
I.  Executive Summary .................................................................................................................. 3 
II.  List of Acronyms ...................................................................................................................... 6 
1.  Introduction ............................................................................................................................... 7 
2.  Methodology and Approach for Assessment and Analysis ...................................................... 8 
3.  Situational Analysis and Development Progress ...................................................................... 9 
3.1  Socio economic issues of the project areas ...................................................................... 9 
3.2.  NGOs/Government development program: ................................................................... 12 
4.  Smallholders Performance in Different Sectors ..................................................................... 13 
4.1  Crops: ............................................................................................................................. 13 
4.2  Fisheries: ........................................................................................................................ 18 
4.3  Livestock and poultry ..................................................................................................... 22 
4.4  Non agriculture income generating opportunity ............................................................ 24 
4.5  Business performance of the smallholders ..................................................................... 25 
5.  Agricultural Business Environment ........................................................................................ 28 
6.  Services Market ...................................................................................................................... 37 
7.  Constraint Matrix .................................................................................................................... 39 
8. GLOSSARY ............................................................................................................................. 41 

2|P a g e
I. Executive Summary
The assessment report of the Barisal and Noakhali region has conducted to know the overall
agriculture product marketing system under the project “Market Infrastructure Development
Project in Charland Regions (MIDPCR).” This project is funded by The Dutch Government, The
Bangladesh Government and IFAD, Implemented by LGED. Rural Enterprise Development
(RED) is one of the components of the MIDPCR that contribute to move up the product value
chain. The prime methodology is one to one discussion with different level of stakeholders and
field observation. However a set of questionnaire was used for collection of qualitative
information from the producers of MIDPCR group, traders and key informants of the project
selected markets.

Researcher said that Barisal has the highest incidence of poverty compared to the remaining
divisions of the country (CPD report, 2006). It was found that, of the total population, about 25%
are extreme poor and 25% are poor throughout the region. Cyclone and tidal surges is very
common in this region that slowdown the growth and increases the poverty. Also surrounding by
3-4 big rivers, caused soil erosion and emerge land in the middle of the river (called char) is
decreasing the agriculture productivity.

Agriculture plays a vital role in the regional economy. 40% of the regional GDP comes from
agriculture with 80% of the population employed in the sector. Employment in fish sector is
dominant for the extreme poor and poor i.e. labor intensive. 60 -70% labor has involved round
the year in this sector (boat roaring, fishing, drying, net and boat making and repairing,
transporting fish from one location to other etc.). Most of the poor are involved in crop
production during winter but other period they involved in fishing either own or selling labor to
the mohajan. Advance crop and labor selling with lower price is copping strategy for mitigation
the social and natural socks. Non agriculture activities and employment opportunities is more
limited than elsewhere in Bangladesh. Small scale activities exist with regard to retail shops
(increased with improvement of road communication) and workshops (for Rikshaw, Rikshaw
Van), motorbike, taxi service.

The economic activity of this region is concentrated in agriculture, fisheries and labor wages and
foreign remittance. The major crop are amon rice, mung bean, grass pea, lentil, soybean,
ground nut, chilli, watermelon, sweet gourd, okra, bean, watermelon, hog palm, guava, capture
fish etc. Crop intensity is 183% because of salinity, sandy soil, scarce of irrigation water; and
drought. Kharif II and winter season is suitable for crop production but difficult to grow in Kharif I.
Cropped areas are Cereals- 71.64% (Amon- 52%, Boro- 11%, Aus- 9%), Pulse- 15.34%, Spices
and Fruit- 3.79%, Oil seed crops- 4.68%, Vegetable- 1.76% and Tuber crops- 1.43%. Paddy,
fish, fruits, pulses, soybean and ground nut is exporting from this region and vegetable are
importing from other part of the country. Traditional livestock, poultry and pond fish production is
exists and commercialization of these products is very slow.

Crop cultivation is very traditional. It was found that availability and access to inputs, technical
advice, and extension support is very poor in this region. Farmer used 30-40% quality seeds for
crop production and rest seed is produced and preserved by own but not able to maintain the
quality dew to low level of technical knowledge. Fertilizer using trend is same like other part of
the country i.e. use excess urea for growing crops instead of using balance fertilizer. Maximum
pesticide used for growing paddy, water melon and potato. However input market is low
compare to other division of the country.

3|P a g e
Capture fish is dominating the fish market. There is plenty of pond/ditch in these regions, but
fish productivity is low. Fingerling is the most important input for pond fish culture. However,
only 20% of the total fingerling demand is met from these areas. Very few hatcheries and
fingerling producers have involved for producing spawn and fingerling. Actually farmers are not
serious about maximizing of the pond production. Overall productivity of livestock and poultry is
also low. Generally farmer is rearing local cow, goat, poultry bird and duck as subsistent
farming.

Production cost is high because inappropriate application of input (wrong pesticide, over dose of
urea fertilizer, high stocking density etc.) and low level of technical know how. Yield gap (range
is 29 - 53%) is found in each and every crop between exiting and recommended practices.
Existing farming practices was found that vegetable cultivation provides higher profit than other
crops. Even if farmer use improves production technology than profit will significantly increased.
Moreover cultivation off season and high value crops (okra, country bean, tomato) could give
higher return. Thus it is very important to analyzed cost benefit and demand supply opportunity
for individual crops and show alternative options to the farmer so that small producer will be
efficient enterprise.

Product shifting by road is improving; still 80% product is shifting by water transport. It takes
more time and cost is higher because of loading and unloading and uses other transport for
reaching in the selling point. Outside traders are locate at distracts level or big assembly point
from where product shifting is easier and less risky. Also they imported product up to the same
level and selling to the local traders. Local traders (bepari, piker, foria) bring product from the
primary producer and shift to the end consumers. So they bear the most risks for shifting
product by using different mode of transports. It is found that 70-80 % produces sold in local
markets. Foria, bepari and piker buy those products from farm gate, local/union level markets,
shift them in assembly point and sold to outside bepari or regional traders. Most of the cases
vegetable, chicken, milk, pond fish, egg etc. is selling in local market and cereals, pulse, oils
crops, livestock etc. is selling in assembly point. As a result farmer is not directly connected with
high value markets and less access to market information.

Processing or product transformation activity is very limited in these areas. Even after harvest,
paddy shift to Norshindy and Munshigonj for milling. There is few small processors found for
pulses husking and oil extraction. However this region is potential for the processing activities
like fish and poultry feed preparation, oil extraction, prepare snack food, etc. Private investment
in the remote area is very low because of uncertainty of electricity. The investment is mostly
concentrated in district and regional level. Even company is less interest to invest and expand
their business, because create farmer awareness is costly, demand of the product is low and
product shifting to the rural market is costly.

There is number of business associations found in the market place such as chamber of
commerce at district level, input seller association, bonik somitte in each and every hat/bazzar.
These associations positively help the association members and resolve the conflict if arise. But
don’t think seriously about the growth of the business or market. A good number of organization
and government development project has implemented poverty reduction development activities
in the region. Such as government facilitated Char Development Settlement Project III (CDSP-
III), Save the Children-USA and HKI facilitated Jibon-O-Jibika, DANIDA, DOF and DLS
facilitated RFLDC project, WFC facilitated CAARP II project and ACF, Asia Foundation, FAO
also facilitated other rural development project in this areas.

4|P a g e
It is found that economy of these region is depends on natural resources and market forces. So
that increasing efficient and effective uses of those resources can increase the productivity of
the land and profit of the primary producer. But constraint to the primary producer;
 Lack of access to market information, which affect to prepare an efficient and effective
business plan.
 Unavailable of quality inputs (especially seed, fingerlings, feed, DOC), and lack of access is
a big constraint for the producer to increase the yield per unit area.
 Low demand of the inputs inhibits the growth of the business and strengthening the
distribution channel.
 Week technical knowledge of farmer inhibits to use the natural resource (land, water etc)
properly, and planning (early or late season high value) for crop production.
 Lack of access to technical advice due to week extension services up to the rural level.

5|P a g e
II. List of Acronyms

ACF Action Contre la Faim (ACF)-Bangladesh

AI Artificial Insemination
BADC Bangladesh Agriculture Development Center
BARI Bangladesh Agriculture Research Institution
CPD Center for policy Dialoge
CDSP Char Development Settlement Project
CBOs Community based Organization
DAE Department of Agriculture Extension
DLS Department of Livestock
DOF Department of Fisheries
DOC Day Old Chick
FFS Farmer Field School
FGD Focus Group discussion
FAO Food and Agriculture Organization
HYV High Yielding Varieties
HKI Helen Keller International
HH Household
IFAD International Fund for Agriculture Development
INGO International Non Government Organization
LGED Local Government Engineering Department
LCS Labor Contracting Society
LLP Low Lift Pump
MIDPCR Market Infrastructure Development project in Charland Region
MP Murat of Potash
MFI Micro Finance Institute
NRDS Noakhali Rural Development Society
PRISM Prosperity Realized through Income Generation and Smallholder Markets
RED Rural Enterprise development
RFLDC Regional Fisheries and Livestock Development Component
SRDI Soil Resource Development Institution
SC-USA Save the Children- USA
T-amon Transplant Amon
TSP Triple Super Phosphate
UP Union Parishad
VFA Veterinary Field Assistant
WFC World Fish Center
WMG Water Management Group

6|P a g e
1. Introduction
Rural Enterprise Development (RED) is a component of “Market Infrastructure Development
Project in Charland Regions (MIDPCR)” funded by The Dutch Government, The Bangladesh
Government and IFAD, Implemented by LGED.

The goal of the MIDPCR is “To improve the well-being and reduce the poverty of primary
producers, char-based traders (both women and men), landless and single women and their
households”. The objectives are;
• Improvement in the facilities and terms of access of men and women to the market
• Increase in wage employment in project period for women
• Increase production and sales of products for the market and
• Movement of primary producers up the value chain.

The project has the following components and implementing partners:

• Infrastructural Development- LGED
• Policy, Institutional and Management Support- LGED
• Production and Market Group Development- DAE, Padakhep and PRISM
• Rural Enterprise Development- IDE-Bangladesh.

To achieve the MIDPCR objectives RED component will emphasize in the flowing areas;
• Development of linkages to buyers and markets beyond local markets in the project
areas;
• Addition of value to the products sold by rural producers in project area, and
• Capacity building of the beneficiary groups (e.g. primary producers, small traders).

RED team, based at Noakhali and Barisal region start to observe the overall market and
business situation from the beginning of inception of the component. The BDM introduced with
different govt. and private agencies discuss and collect information about crop, livestock,
fisheries and off farm sector business performance of these regions. Later on using semi
structured questionnaire for data collection from the project selected areas from different type
and level of stakeholders. The objectives of the situation analysis:
 Collect information about present performance of crop, livestock, fisheries and off farm
business performance.
 Analyzed and understand the broader picture of the business and recommend the further
investigation to know the specific opportunity.

The study also analyzed business model, value chain and cost profit of the specific crops like
soybean, tomato, water melon etc. This study also entails the over all performance of the poor
producers who were selected as project participants around the MIDPCR markets.

The following report outlines the methodology and approach of the market assessment,
situation analysis of the agriculture sector and the key findings. Recommendations will provide
the thoughts and insights on potential areas for further study.

7|P a g e
2. Methodology and Approach for Assessment and Analysis
The prime methodology is one to one discussion with different level of stakeholders and field
observation. However a set of questionnaire was used for collection of qualitative information
from the producers of MIDPCR group, traders and key informants of the LGED selected
markets. FGD and in depth interview is the key method of information collection. Moreover
collection and review of different reports of Government extension agencies and development
organization of that region was also considered for preparing this report. Observation of the
project staff also included in this report. The number of FGD and interviews are shown below;

Table- 1: Number of interview and FGD:

Events Barisal Bhola Potuakhali Naokhali Total
Farmers interviews 02 09 03 03 17
FGD with farmer 02 04 02 03 11
FGD with MMC 02 01 02 01 06
FGD with farmer association 0 0 01 01 02
Traders association 01 01 01 0 03
Pesticide seller association 0 01 0 0 01
Traders interview (retailer, bepari, arotder) 05 03 04 04 16
Input seller interview 03 04 02 01 10
Key Informant interview 02 04 03 05 14

The geographical location for data collection is concentrated within MIDPCR project area.

Table- 2: Project location:

Name of District Name of Upazilla
Barisal Bakergonj, Hizla, Mehendigonj, Muladi
Patuakhali Golachipa, Kalapara, Baufal, Dasmina
Bhola Sadar, Borhanuddin, Charfassion, Daulatkhan, Lalmohon, Monpura, Tazumuddin
Noakhali Sadar, Companygonj, Subornachar, Hatia
Lakshmipur Ramgati

Within this areas the project target to work with 60 nos. rural markets and 80000 poor
households. The NGOs (Padakhep and PRISM) and CDSP selected households and formed
group in the project areas. The group distribution is as follow.

Table- 3: Group distribution

Type of group Barisal Bhola Potuakhali Naokhali Laxmipur
LCS groups 400 800 454 260 63
CDSP groups 0 0 0 34
LCS groups 13 6 14 8 2
LGED markets 8 19 8 8 2

The farmer and MMC interview has fully concentrated in the LGED selected groups and
markets. However the input seller and traders interview has conducted with those who have
business linkage with those farmer groups. The key informants (KI) are officials of DAE, DLS,
DOF, BADC, SC-USA, HKI, RFLDC-DANIDA, BARI, SRDI, seed and pesticide company
representatives. During interview with KI some reports with data were collected and analyzed
for justification of the findings. Finally all staff of 4 districts team was participated in workshop,
analyzed information and prepared this assessment report.

8|P a g e
 3. Situational Analysis and Development Progress
The regional economy generally has steady growth 5.5% in 2005 according to the statistics.
Agriculture plays a vital role in the regional economy. 40% of the regional GDP comes from
agriculture with 80% of the population employed in the sector (………). The majority of regional
crop production centers on cereals, pulse and oils and capture fish. It was observed that
productivity is moderate due to week input distribution mechanism, minimum technical and
extension services and lack of market access of the poor primary producers. Thus the
opportunity exists to diversify and expand the markets through increase the productivity and
access to high value markets. Difficult physical communication, week supply chain, lack of
market access and poor service market are the major factors for lower productivity and poor
sales prices of the products.

3.1 Socio economic issues of the project areas

The socio economic status depends on different factors. Population, literacy, land productivity,
industry, etc has contributed in the socio economic status of these regions. The administrative
and demographic data is showed in below table.

Table- 4: Administrative unit and population:

Area Number of administrative units Population Sex Total House
Administr (sq.km.) Ratio House hold
ative hold size
Upazila Muni Male Female Both
Area/Zila Union Village cipality sexes
Barisal 2,791 10 86 1,175 5 1,278,820 1,253,490 2,532,310 102 516,798 4.9
Bhola 3,403 7 64 475 5 921,836 874,857 1,796,693 104.8 264,859 5.1
Patuakhali 3,220 7 67 882 3 813474 791991 1605465 102.7 306,146 5.2
Noakhali 3,062 6 83 978 5 1,239,158 1,294,236 2,533,394 95.7 455,321 5.6
Laksmipur 1,542 4 50 536 3 728,065 751,306 1,479,371 96.9 288,214 5.1
Ref: Administrative units, households and population by sex, 2001 Census

Literacy level (Average literacy is 35.25%; male

39.67%, female 30.76%) is higher in the
division than elsewhere in Bangladesh, with the
exception of Bhola due to socio-cultural
reasons (more religious based education). Birth
rate is comparatively higher in these regions
particular in Noakhali. The poor family earning
is mostly labor based thus in the remote,
percent of child labor is higher compare to main
land.

It is commonly told that, of the total population,

about 25% are extreme poor and 25% are poor
throughout the division. The number of poor
and extreme poor is higher particularly in the

9|P a g e
remote part of the division. The researchers said, Barisal (52.0%), Rajshahi (51.2%) and Khulna
(45.7%) have the highest incidence of poverty compared to the remaining divisions (CPD report,
2006). However in these districts farmer are broadly divided in to 3 categories;
big/rich farmer who share/leased land to the poor farmer,
small farmer cultivate own land and
marginal and landless farmer cultivate own land, share/leased land, involved in nonfarm
activities and selling labor.

Table- 5: Average land holding per household

District 0-40 (dec) 50-100 (dec) 100-200 (dec) 200-300 (dec) >300 (dec)
Barisal 15.25% 32.20% 31.50% 17.32% 3.73%
Bhola 16.55% 33.32% 32.23% 15.65% 2.25%
Potuakhali 14.95% 32.88% 30.13 % 18.20% 3.84%
Noakhali 60% 25% 10% 3% 2%
Laxmipur 33.87% 21.95% 17.06% 21.32% 5.77%
(Source: DAE Annual report)

The socio economic condition of these regions is diversified. The region is divided into many
parts by three/four big rivers and the road communication is very difficult. Most of the rural
people are poor and extreme poor. Livelihood opportunities are agriculture, fisheries and labor
selling. The economic activity of this region is concentrated in crop production, capture fisheries,
labor wages and foreign remittance. In Noakhali region (comprise with Noakhali and Laxmipur
districts) remittance is one of main economic source but rural economy is depends on
agriculture especially growing amon rice, soybean, ground nut, watermelon, sweet gourd, okra,
bean, capture fish etc. In Barisal region (comprise of Barisal, Patuakhali and Bhola district) the
economy build on agriculture especially growing amon rice, mung bean, chilli, grass pea,
watermelon, hog palm, guava, capture fish etc. Paddy, fish, fruits, pulses, soybean and ground
nut is exporting from this region. Traditional livestock, poultry and pond fish production is exists
and commercialization of these products is very slow. Milk production especially buffalo milk
production in Bhola is encouraging and consume in local and regional markets. The vegetable
demand of the local market is very high. Most of the period vegetable import from Jessore,
Khulna, Magura distrcts.

Landless and marginal farmers migrate to other part of the country during drought and monsoon
period due to limited income opportunity in the region. Young women shift to Dhaka as garment
and maid workers.

Table- 6: Major occupations and income sources:

Districts Agriculture Fishing agricultural wage business Service others
labourer labourer
Barisal 40.28% 6.25% 25.15% 5% 10% 7.7% 5.62%
Bhola 38.74% 5.9% 24.52% 4.67% 9% 4.47% 12.70%.
Patuakhali 40.84% 12.32% 12.72% 10.53% 9.94% 6.12% 8.53%
Noakhlai 45% 5% 15% 5% 8% 6% 16%
Laxmipur 35% 7% 20% 5% 9% 9% 15%

Employment opportunity is mainly concentrated in agriculture sector and limited in non farm
sector. 80% household livelihoods depend on agriculture. Most of them are involved in cereal
production, 50% of them are involved in vegetable production and 15-20% farmer involved in
pulse/tubers/fruit crops production.

10 | P a g e
However employment in fish sector is dominant for the extreme poor and poor i.e. labor
intensive. 60 -70% labor has involved round the year in this sector (boat roaring, fishing, drying,
net and boat making and repairing, transporting fish from one location to other etc.) Most of the
poor are involved in crop production during winter but other period they involved in fishing either
own or selling labor to the mohajan. The second sector is crop production. Only 3-5 % women
involved in crop production activities i.e. post harvest activities of crop and fish. More
involvement of women is found in homestead production activities, particular in vegetable
production, poultry, duck, goat and cattle rearing.

In both regions major production constraints is irrigation. Particular in dry season (mid February
to mid May) most of the land is not under production. Input supply (especially seed, fingerlings,
feed), land productivity, access to services and markets system are major constraints of these
regions for economic growth. However the socio economic condition of Barisal and Noakhali
region is remarkable improved in last decades. Earlier economic activity of these regions
depends on crops, fisheries and foreign remittance. Due to government and NGOs development
initiatives remarkable change have been found in economic growth. The internal road
communication improves the transportation of products, improve mobile communication with
other markets, electrification and extension services influenced the producers for diversify of
crops, increase yield and access of high value markets.

11 | P a g e
3.2. NGOs/Government development program:

Char Development Settlement Project III (CDSP-III) is implementing development

activities in Boyerchar under Hatia upazilla of Noakhali district. Under the leadership of Water
Development Board other 5 Govt. agencies including NGOs are implanting the project activities.
The project formed different type of groups with the char settlers e.g. Water management group
(WMG), Agriculture production group and Forest management group. RED, MIDPCR has
specific commitment to facilitate capacity building activities so that poor producers of CDSP
areas will get access in the market. It was found that RFLD-NC already started activities in the
CDSP areas. They turn the WMG in CBO and form para based FFS. Local Trainers was
developed in the FFS and facilitated skill training for the poor producers.

Save the Children-USA implementing the project in selected districts (Barisla, Patuakhali and
Bhola) of Barisal region in the name of Jibon-O-Jibika (Life and Livelihood). One of the major
objectives is to increase food security with closely link with crop production and marketing.
Helen Keller International is currently working with this objective. They from VMF and small
producers group in a union, develop their skills in production and group marketing.

DANIDA implementing a project named “Rural Fisheries and Livestock Development- Barisla
Component (RFLD-BC)”. The major partner is Department of fisheries and department of
Livestock from July 2007 to June 2012. It will cover 24 upazillas under 6 districts of Barisal
division. The selected upazilla is similar to RED upazilla in 3 districts (Barisla, Patuakhali and
Bhola) of Barisal. They organize FFSs in the village level as an entry point of development
activities and select local trainers. CBOs and farmers’ associations formed and enabled to
successfully articulate farmers demands to local private and public service providers. The
project also improves the capacity and accountability of local government institutions (Union
Parishad). The project conduct commodity sub-sector analysis and value chain analysis in both
input supply and product markets. Development of certification and traceability systems for
target commodities and provide technical and management support for existing local traders
and processors.

Asia Foundation is implementing a project named “Local Economic Governance Program”

funded by Bangladesh Investment Climate Fund, Batter Business Forum and Bangladesh
Regulatory Reform Commission. The program manly work with Chamber of Commerce and
different business associations of Barisal division.

Other like FAO, WFC, ACF also implementing rehabilitation and development project particular
in Barisla division. National and local NGOs have their own projects but mostly focused on
micro credit. Some local NGOs implementing development project as subcontracting from the
INGOs.

12 | P a g e
4. Smallholders Performance in Different Sectors

Barisal and Noakhali region is located at the mouth of the major arm of the Padma, Jamuna,
Meghna river system, characterized by chars (emerging land). There is lot of rivers and each
river has numbers of cannels that link among the districts. Crop production particular amon
paddy, pulse, oils, betel nut is growing all over the districts. Tree plantation is well above
average in Bangladesh (road side, villages). Ponds (ditches) abundant throughout the division,
part of almost every homestead. Increase land productivity and pond fish culture has the
prospects in all over the project areas.

4.1 Crops:

Crop production is the main sources of food and cash of these regions. The farm household and
the crop land of different districts are shown below:

Table- 7a: Farm household and crop land:

Name of district Farmer Total land Single Double Triple Total Crop Fellow
HH (hac) crop crop crop land land
Barisla 382,187 181,659 49,395 85,862 23,515 291,791 1,344
Bhola 264,859 409,553 21,699 85,312 76,878 183,889 829
Patuakahli 260,225 322,015 58,705 104,510 50,385 418,880 400
Noakhali 373,847 195,175 78,342 55,404 40,032 309,246 14,105
Laxmipur (Ram) 39,850 - 1,129 11,143 11,438 25,262 1,552

Table- 7b: Land uses:

Item Patuakhali Barisal Bhola Noakhali
Cultivable Land ( hac) 214,000 158,803 203,550 195,175
Cultivate land ( hac) 213,600 142,320 180,297 173,778
Cropping intensity (%) 196 197 224 178
(Source: DAE Annual Report)

Total permanent fallow land is 26195 hactor, 169060 hac in rabi season and 272660 hac in
kharif I. Though average cropping intensity is 183% of the regions however cropping intensity
and crop diversification is highest in Bhola. Both Kharif II and winter season is suitable for crop
production but difficult in Kharif I due to draught and salinity. Cropped areas in the regions are
Cereals- 71.64% (Amon- 52%, Boro- 11%, Aus- 9%), Pulse- 15.34%, Spices and Fruit- 3.79%,
Oil seed crops- 4.68%, Vegetable- 1.76% and Tuber crops- 1.43%).

13 | P a g e
Table- 8: Yield gap between existing and recommendation practices:
Name of crop Average yield (ton/hac)
Farmer practice Recommended practice
T-Amon 2.5 4
Boro 4 5
Soybean 1.2 1.7
Groundnut 1.5 2
Okar 12 14
Bitter Gourd 15 25
Tomato 45 85
Chili 1.2 2
Mung Bean 1 1.3
Water Melon 25 30
(Source: Technical study report on crop production system and technology in the regions (Bar, Bho, Pat,
Noa, Lax) by identifying constraints and opportunities under MIDPCR, June 2008)

From the above table yield gap is found in each and

every crop and the range of yield gap is 29 - 53%. This
is due to low quality seed, use local variety, week crop
management practices and in appropriate harvesting
time and techniques. The gap is ranging from 1.5 to 2
times less than the recommended yield. It was found
that scope is less to increase the cereal yield and more
to increase vegetable and pulse yield.

Table- 9: Major crops grown in these regions

District Present growing crops
Barisal T-Aman, Bitter ground, Tomato, Chili, Lentil,
Mungbean
Bhola T-Aman, Mung, Chili, Country bean, Sweet
gourd, Snake gourd, Water melon Plane dal,
Ground nut,
Patuakhali T-Aman, Water melon, Potato, Sweet ground,
Plane dal, Grass pea, Mungbean, Chili, Indian
spinach
Noakhali & T-Aman, Soybean, Ground nut, Chili, Okra,
Laxmipur Country bean, Sweet ground, Sweet potato
(Source: IDE staff observation and DAE Annual report)
Promising crops
Tomato, Okra, Mustard, Onion, Garlic
Teasel gourd, Okra, Cauliflower,
Cabbage Cucumber, Maize, soybean,
BAU Kul, Apple Kul, Tomato,
Cauliflower, Cabbage, Potato, Maize
BAU Kul, Apple Kul, Soybean, Country
bean, Okra,

14 | P a g e
The main crops of these regions are Paddy (T-amon), Mung bean, Soybean, Ground nut, Chili,
Watermelon, Tomato, Country bean, Okra. Though amon is the main crop of these region but
boro and winter vegetables are also growing well in Bhola. It’s because of well irrigation
facilities, soil type and land topography is comparatively batter in Bhola.

Table- 10: Major cropping pattern of the regions;

Districts Rabi (October-February) Kharip 1 (March-June) Kharip II (July-Sept.)
Patuakhali: Water Melon Boro Aus T-Aman
Fallow Baro Aus T-Aman
Pulses Fallow T-Aman
Fallow Fallow T-Aman
Vegetable Fallow T-Aman
Recommended (BARI) Potato/Vegetable/pulses Boro Aus/Boro T-Aman
Barisal Vegetable Soybean T-Aman
Vegetable Ground nut T-Aman
Pluses Fallow T-Aman
Fallow Fallow T-Aman
Recommended (BARI) Vegetables/pulses Boro T-Aman
Noakhali Boro Fallow Fallow
Pulses/Oil seed /Spices Aus T-Aman
Rabi crop Aus T-Aman
Fallow Fallow T-Aman
Boro Aus T-Aman
Recommended (BARI) Boro Pulses /Spices /oilseed T-Aman
Bhola Potato T-Aus T-Aman
Pulses Sugarcane T-Aman
Vegetable T-Aus T-Aman
Recommended (BARI) Vegetables/pulses/potato T-Aus T-Aman
(Source: DAE Annual report)

In this region most of the land is under cultivation in kharif II. 30% and 15% land is used in Rabi
and Kharif I season respectively. Reasons for land fallowing is highlighted below-
Noakhali Nov – June due to salinity and moisture stress in charland.
Laxmipur: Oct – March due to soil wetness, Mid march - Mid July due to moisture stress in
charland.
Barisal: Oct – March due to late harvest of T amon and, excessive moisture.
March – July due to moisture stress in the char land.
Bhola: Oct – March due to late harvest of T amon and, excessive moisture.
March – June due to moisture stress in the char land.
Patuakhali: Nov – June due to late harvest of T amon, excessive moisture and salinity.

Natural rain irrigated T. Amon is the main crop in the region. 50% local varieties are used in
Amon cultivation. The boro cultivation is significantly hampered due to lack of irrigation
possibilities, soil and water salinity, however land uses is increasing for HYV both in Amon and
Aus.

Vegetable and fruit is not available in this region except hog palm, guava and betel nut. Pulse
such as grass pea, mung bean, lentil and oil crop such as soybean, ground nut, mustard is
cultivated especially in the char land. Recently boro, potato and water melon cultivation and
productivity has increased. In Bhola farmer practiced intercropping such as chili/okra plus sweet
gourd and potato plus bitter gourd. Moreover pulse production trend is increasing in Bhola.

15 | P a g e
Paddy, water melon, okra, country bean, mung, soybean, ground nut, etc. exported to the other
part of the country. Vegetables are produced on a much lower scale than elsewhere in
Bangladesh. Kharip I is less productive due to drought and higher salinity. Thus local vegetable
demand is meeting from other part of the country. Although the production has increased in the
recent past, vegetables are still being imported from other part of the country.

Table- 11: Seasonality of vegetable production:

Name of Crop Early Pick Late
Potato September – November November – January December- February
Tomato October - December November - February December- February
Country Bean August – October October – December December- February
Chilli August – November October – February July-September
Water Melon January – March February – April March-May
Bitter Ground January - February March – April May – July
Indian Spinach December - January March – June June- August
Okra January – March March – June June-August
Snake Ground February – April April – June November-January
(Source: DAE Annual report)

It was found that due to residual ground water after the rainy season it is possible to grow early
vegetable in these areas. Few farmers were taking this opportunity for getting more profit. If
farmer grow and sales early vegetable it help them to earn 30% more profit compare to pick
season. Example, country bean sales in early season is Tk 25-30/kg, Tk 15-20/kg in middle and
Tk 8-10/kg in season end.

Table- 12: Seed using trends for crop production:

Districts Local seed (%) HYV seed (%) Hybrid (%)
Barisal 60 30 10
Patuakhali 40 40 20
Bhola 70 25 5
Noakhali & Laxmipur 65 25 10
(Source: IDE staff observation)

Generally farmer grows local varieties of different crops using own preserved seed. However in
the recent years HYV and hybrid seed using trend is increasing. DAE, research and private
seed company create awareness, transfer technology, extension services, strengthening
distribution channel for increasing farmer’s practices of using improved seed. Now-a-days
farmer used 30-40% improved seeds of BADC and seed companies for crop production and
rest seed is produced and preserved by own but not able to maintain the quality dew to low level
of technical knowledge.

Like other part of the country farmer used urea for growing crops. However they use less
chemical fertilizer and use water hyacinth as sources of organic matter. It was found that of the
total fertilizer consumption, the share of urea is 75%, TSP 10%, MP 10%, Gypsum 3% and
others 2%. Though 30-40% farmer is aware about balance dose of fertilizer but practiced only
10-15%.

Maximum pesticide used for growing paddy, water melon and potato. In amon cultivation
pesticide uses is less compare to other part of the country. Because of 50% (app.) land is
cultivating by local varieties which is less infested by pest. Boro is less cultivating due to scarce
of irrigation opportunity. In this areas vegetable are cultivating in kharif II and early winter. Vine
and gourd vegetable are cultivating in Kharif I, which is less pest infested thus farmer used less

16 | P a g e
pesticide. Some areas farmer are commercially cultivating tomato, chili, country bean, okra,
watermelon, ground nut, pulses etc. that required intensive management for pest control.

Table- 13: Soil type

Soil type Patuakhali Barisal Bhola Noakhali
Sandy (% of land) 14 10 6 15
Sandy loam (% of land) 41 47 77 25
Loam (% of land) 15 18 16 41
Clay loam (% of land) 30 25 1 19
(Source: DAE annual report)

Barisal and Noakhali region are occupies an extensive area of tidal floodplain land and found
different type of soil. Generally the soil is sandy loam to loam in nature but percent of clay soil is
more in Barisal and Patuakhali districts. Clay soil is becoming harder during dry season and
difficult to grow vegetable. Due to river erosion of main land it is very common to emerge land in
the middle of the river (called char). The soil condition of these char is generally sandy and
partially sandy loam that favorable for certain crops like ground nuts, pulse etc.

In sandy soil farmer is growing water melon, sweet gourd, ground nut and in sandy loam soil
rice, pulse, wheat. All crops are growing well in loamy soil but clay soil is inclusively suitable for
rice cultivation.

The salinity is higher in part of Kolapara and Golachipa upazilla under Potuakhali district,
Monpura and Charfasion upazilla of Bhola district, Hatia and Subornachar upazilla under
Noakhali and Ramgoti under Laxmipur district. Farmer used organic matter as much as possible
and mulching the land and used gypsum and potash fertilizer to balance the soil salinity. They
choose rice variety BRRI 47 Boro and BRRI 41 and BRRI 44 for Amon season as saline tolerant
varieties

17 | P a g e
4.2 Fisheries:

About 15-20% population livelihoods absolutely depend on fishing and fall under the extreme
poor category. Most of this people are depended on fishing in deep sea and open water bodies
(mainly rivers and cannels) for the whole year. River, canal and sea (open water fish) is major
sources of fish in these regions.

Pond fish culture has been increasing with rearing

of exotic fish varieties for the last couple of years.
There are ponds/ditches in each and every
homestead but those are not well managed for
getting highest yield. Recently catching post larvae
and Golda shrimp culture is found promising
economic activity.

Table- 14: HH involvement in the fish sector:

Name of Culture fish Capture fish
districts No. of HH No. of Yearly No of HH Yearly
involved ponds production (MT) involved captured (MT)
Barisal 42544 71358 24514 4230 25705
Bhola 51338 57116 66300 32500 45000
Patuakhali 58352 49251 115012
Noakhali 86262 89182 34585 8652 74522
(Source- DOF)

Most of the traditional fishers have become so poor that they are to borrow money in advance
from mohajons for consumption and use for the boat, nets, ropes etc. owned by the mohajons.
So they are to sell their catches to them with lower price. Traditional fishermen suffer most due
to unavailability of open water fish in the nearby areas, restriction of open water fishing during
November to April and are reluctant to accept alternative professions. A good number of poor
farmers those have small land, also engaged with seasonal fishing (non-traditional fishers) and
affect livelihoods of the traditional fishers.

Table- 15: Major fish

Name of Culture fish
District
Patuakhali Rui, Katla, Pangash, Sorputi,
Silvercarp, Grass carp, Gollada
Barisal Rui, Katla, Pangash, Sorputi,
Silvercarp, Grass carp, Tilapia,
Bhola Common carp, Rui, Katla, Pangash,
Sorputi, silvercarp, Kalibous,
Noakhali & Tilapia, Pangus, Rui, Katla, Mrigal,
Laxmipur Silver, Grass carp, Kalibaus, Golda
(Source: IDE staff observation)
Capture fish
Ilisha, Rupchanda, Pangash, Golda,
Bagda, Puma, Taposhi, Prawn
Ilisha, Pangash, Tengra, Puthi
Ilisha, Pangash, Puma, Chingri
Ilisha, Pangash, Puti, Poa, Latia, Tengra,
Chewa

18 | P a g e
In Noakhali, Bhola and Patuakhali farmers has produced golda shrimp (Shrimp of Noakhali is
called white gold). It was calculate that 822 MT of shrimp was produced in a year from a total
2068 nos. ghar with 1484 hac. land. Golda cultivation is increasing in Patuakhali and Bhola
districts due to RFLDC interventions and post larvae are available in the river.

Table- 16: Feature of fish sub sector:

Barisal Patuakhali Bhola Noakhali Laxmipur
Hatchery
Number 4 05 9 (Pri-7, Govt-2) 19 (Pri-18, Govt-1)
Area (hac) 17 20 45 87
Production (kg) 450 200 4555 1686
Fingerling producer
Number 351 568 172 658 5
Area (hac) 80 125 249.73 169 12
Production (MT) 3320 6950 249 7734 480
Patilwala
Number 480 530 467 30
Sales /day (kg) 10-15 20 15-20 10-12
(Source- DOF, the data may be differ in filed investigation)

There is plenty of pond/ditch in these regions, but

productivity is very low. Each and every household has
pond. Some are seasonal but most are perennial.
Farmers generally use pond water for their day to day
work. Farmers are not serious about maximizing of the
pond production. So management activities of pond
production are very week. Pond cleaning, soil and water
treatment, using right species, size and number of
fingerling, maintain fingerling ratio, partial harvesting is
not at systematically practiced by the farmers.

Normal pond fish culture season is start from May. Major culture fish species are Tilapia, Rui,
Catla, Silver, Mrigal, Grasscarp and golda for polyculture. Generally farmers don’t follow the
recommended stocking density. They stocked fish in the pond by weight basis and the size is 3-
4 inch whereas DOF recommendation is 40-55 pcs/decimal and 4-6 inch in size. Partial
harvesting and sampling are not practicing by the farmers. Average yield/decimal is 8-10 kg but
there is a possibility to increase up to 16 kg/decimal. In some cases farmers get yield up to 12
kg/decimal due to RFLDC activities. For disease management there is no use of medicine.
Farmer normally use lime as a chemical in time of disease infestation. Without commercial
farmer improved feeding practice is absent.

Table- 17: Seasonality of fish

Name Off Season Pick Season
Culture Fish November –February June –October
Capture Fish August-January May – July
(Source: DOF Annual Report and Fish Farmer)

In Noakhali region and chars of other districts more than 70% ponds are seasonal. On the other
hand pond water also used for traditional irrigation purpose in the drought season because
there is no other alternative irrigation facility due to salinity. The increased cropping intensity
might have influenced the increased water used for traditional irrigation purpose.

19 | P a g e
Table- 18: Commercial pond-fish culture
Barisal Patuakhali Bhola Noakhali Laxmipur
Number 280 351 278 308 4
Area (hac) 1830 2745 276 2352 16
Production (MT) 2196 2951 326 2750 40
(Source: DOF Annual Report and Fish Farmer)

Increasing investment for pond fish culture is a positive sign of growth. It was observed that
private investment is increasing in hatchery and nursery establishment in this region.

Fingerling is the most important input for pond fish culture. Very few hatcheries and fingerling
producers has produced fingerling and supply to the table fish producer. But spawn and
fingerling production is not commercialized. DOF is to maintain quality of fingerling, control
inbreeding and cross breeding practice. A good amount of fry and fingerling imported from
Jessore, Khulna, Magura, Faridpur. App. 20% of the total fingerling demand is met from these
areas. Fingerling growers also buy spawn from traders and grow in the pond than patilwala buy
and sell to the fish producers. Among the 80% (imported) fingerling, 40% was trading by the
local traders as a group (3-5 nos traders) and rest were trading by outside traders. They sold to
patilwala in cash or credit. The species are pangush, rui, katla, sorputi and magur. If fingerling is
too small, not healthy or poor genetic quality, it will never obtain optimum growth.

Generally farmers released fingerling to the pond and after certain period, start to harvest fish
as and when necessary. Very few farmers are commercially involved in pond fish culture.
Farmers are reluctant in pond fish culture because open water fish is available. Moreover
densely planted tree on pond embankment provide shade on pond water and reduced the
productivity. Fish producers are not using feed and fertilizer as supplementary food and
chemicals for pond management for pond fish culture. Thus input supply chain is very week. As
a result private sectors are not investing because of low demand and small market of inputs.

Usually farmer are not used readymade fish feed, instead they use own made feed i.e. khud
(broken rice), rice bran, rice husk and mustard oil cake. So feed market is very small as well as
supply chain is week. But commercial farmers expect to get quality feed at lower prices and at
the nearest location. One table fish producer mentioned that most farmers do not know the feed
conversion ratio means how much readymade feed is required for producing one kg of table
fish. Many of them aren’t aware of the impact of the FCR.

Different private companies are the sources of feed, medicine and other fish input. Aftab fish
feed ltd. Kazi fish feed, Paragon fish feed, Narish fish feed, Nurani fish feed, Quality fish feed,
Khan fish feed, company selling fish feed and Reneta, Organic, Akmy is marketing fish medicine
and other growth materials in these areas. Readymade feed comes in granule and pellet form
and has different nutrients for nursery feed, starter, grower and finisher. The primary ingredients
of readymade feed are rice bran and mustard oil cake, but during formulation with other
ingredients the producer ensures the required protein percentage (35%). However it was found
that input suppliers are mostly concentrated in Barisal and Noakhali markets and distribution
channel up to the upazilla or union level is very weak. But recently the overall pond fish
production trend, input supply and investment market is improving.

Hatcheries sell 40% of their production to fingerling growers, primarily as spawn. 30% of their
production is sold as fry to fingerling growers and to fingerling traders. 20% of hatchery
production is sold as fingerlings to traders, patiwalas and farmers. The most common flow of
trade is for the hatchery owner to sell spawn to the fingerling grower who then sells to the

20 | P a g e
patiwala who sells fingerlings at the farm gate. There is no organized formal assessment to
know the actual demand for spawn and fry, so hatchery owners depend on past year selling
volume. When demand is low compared to the supply then the hatchery owner is forced to
produce and sell fingerlings. Hatcheries sell spawn by taking advance orders (2-3 days before)
from fingerling growers but fry and fingerlings are sold on the spot. DOF is starting registration
of private hatchery.

Only Department of Fisheries, RFLDC (DANIDA) and WFC provides services on fish culture in
these areas. Focus on pond was major thrust of first phase DANIDA programme but in limited
districts. In the second phase, DANIDA geographically and programmatically expand the
support and services i.e. more districts and livestock component has added. The project focus
to improve the input supply system by the involvement of private sector (feed, fingerlings etc.)
and also extension services by the involvement of DOF, DLS, UP, CBO etc.

21 | P a g e
4.3 Livestock and poultry

Most of the rural household has poultry birds (local chicken & duck) and app. 50% household
has livestock (mainly cow, goat and buffalo). It is observed that people in the plain land are
keeping cows and rearing poultry, ducks in their homestead and traditionally women take care
for feed and other things. Livestock especially buffalo is very common in the island, duck is very
common in Hatia upazilla and Bhola districts. This sector is growing on the natural atmosphere.
Yogurt, sweet and ghee of Bhola and Barisal is famous in the country.

Compare to other part of the country cattle

grazing facility is better in this region
because of char land and fallow land. Rich
farmer in the village have cattle and buffalo
but poor farmer have poultry, duck and
goat. However during rainy season it is
difficult to kept them alive due to disease
infestation and food crises.

Farmers are batter aware and more

attentive about milking cow rearing, beef
fattening and poultry rearing but not enough
about goat and duck rearing and their
management. Rural farmer are not enough
aware about artificial insemination,
preventive treatment, combination of natural and readymade food and overall hygienic activity
for the animal and bird. Poultry worker and Community Livestock Worker of RFLDC is providing
support at the village/union level on livestock management in coordination with DLS. Bird flue is
found in winter season and other disease like rani khet, duck pleg, torka is common for the
poultry, duck. Khura is one of the major diseases for cattle in summer.

Availability of technical advices, vaccination/para-vet and AI services is very week. The vaccine
and semen supply has managed by DLS from the district and upazilla level. Thus the remote
and char farmers were not able to get the vaccine and AI services. Input supply (ready feed,
medicine) is almost nil up to the rural level. Farmer takes care of cattle, goat and poultry birds
with their own knowledge and advices from the neighbor. However in Noakhali region farmers
are better in management of cow for dairy purpose. They are paying to veterinary surgeon for
the treatment of their cow. They are using different types of vitamin and medicine for better
production. Existence of private dairy processing centers in Noakhali is boost up the dairy
production. Rice straw, green grass, rice burn, pulse burn, molasses are commonly used for
animal feed. However Aftab, Quality, Meghna, Nurani, Kazi, Usha, Shipi, Paragon, Narish
poultry feed Co. has been selling ready feed in the project areas. Reneta, Squarer, Acme,
Novertis, FNF, Biofarma, Navana company is selling medicine in this area.

DOC is not available in the rural areas even in the urban areas the quality, number and timely
supply is found difficult in this region. In these regions there is no hatchery for layer production,
it comes from chittagoan.

Four Veterinary Field Assistant (3 VFA for treatment and one VFA for artificial insemination)
from Livestock department is extending services in each upazilla. This is not enough to meet the

22 | P a g e
farmers’ demand of the upazilla. RFLDC in collaboration of DLS start to provide services in this
sector. RFLDC is developing poultry worker and Community Livestock Worker in the union level
by providing technical training on poultry management and provide technical support and
vaccination support with fee.

Table- 19: Commercial farm

Poultry farm Dairy farm Goat and sheep Duck
Barisal 200 3 19 200
Bhola 460 69 183 220
Potuakhali 56 48 8 45
Noahhali 25 35 18 22
(Source: IDE staff observation and DLS report)

Overall productivity of livestock and poultry is low. Generally farmer is rearing local cow, goat,
poultry bird and duck as subsistent farming. The egg production is 70-100 nos/bird/year, milk
production is 1-1.5 liter/day/cow and meat production is average. However improvement in
production and commercialization of this sector is encouraging. A number of private farms
established in this region that may encouraged other small farmer to invest in terms of
commercial basis.

23 | P a g e
4.4 Non agriculture income generating opportunity

Non agriculture activities and employment opportunities is more limited than elsewhere in
Bangladesh. Small scale activities exist with regard to retail shops (increased with improvement
of road communication) and workshops (for Rikshaw, Rikshaw Van), motorbike, taxi service.
Extreme poor women sometimes find jobs as maids/servants. However it was found that in
Noakhali Sitol pati, Cap sewing, mattress by coconut fiber is some of the opportunities in non
agricultural sector job. Pati made by hogla leaf is another opportunity in Payuakhali areas, and
fishing net making and repairing, boat making and repairing, bamboo materials (chatai, fishing
equipments, mora etc.) are major non agriculture income generating activities in these regions.

Discussion output also focused to know the future opportunities. These are mattress by coconut
fiber, Sitol pati, bamboo made materials; fish net making & repairing, cap sewing etc. It was told
that skill based training, credit support and linkage with urban sales market could improve the
overall growth of the sector. It’s also important to understand the cost benefit ration of each
market for analysis the opportunity of investment.

To know the detail and identify suitable intervention the project should conduct the study with
the following key questions;

 Number of HH involved in non agriculture income generation sector:

 Cost profit analysis of each product:
 Availability of the raw materials
 Provision of technical services
 Attachment with other public and private institution (Mohila adhidptor, cooperative, Youth
development center, KARITAS, NRDS etc…)
 What are the market demand (quality and quantity)? (local, national and export)
 Who are the buyer/customer
 Why the business was not expanded/ what are the key constraints that hindering the
business? (Lack of market and technical support)

24 | P a g e
4.5 Business performance of the smallholders

Farmers are cultivating T amon for food as well as for cash. Recently other crops like water
melon, tomato, okra, country bean, chili, ground nut, soybean, mung, lentil is cultivating as
commercial basis. Contract farming is also exists in this region. Below table describe the cost
benefit performance of each crop. Pond fish culture, livestock and poultry rearing and non farm
income generation activities are found as subsistent farming in this region.

Cost benefit of the enterprises: Farmers opened that the production cost is high because of
high input price and inappropriate application of input (wrong pesticide, over dose of urea
fertilizer etc.)

Table- 19: Cost benefits analysis (33 decimal of land):

Name of crop Existing practice Recommended Practice
Cost Income Profit Cost Income Profit
Boro 7600 15000 7400/-
T-Aman 3850/- 6875/- 3025/- 4375/- 11000/- 6625/-
Tomato 14100/- 27600/- 13500/- 18355/- 50,000/- 31,625/-
Water melon 11300/- 17400/- 6100/- 17,320/- 28,825/- 11,505/-
Bitter Ground 14,673/- 52500/- 37827/- 17300/- 48300/- 31000/-
Chili 5900/- 20460/- 11,715/- 11000/- 45000/- 34000/-
Soybean 3395/- 11395/- 8000/- 4500/- 15,500/- 11000/-
Pond fish 11400/- 18525/- 7125/- 17800/- 34200/- 16400/-
Milk cow (local ) 27200/- 41200/- 14000/- 30200/- 52000/- 21800/-
(per cow/year)
Milk cow (cross ) 101000/- 156400/- 55400/- 109300/- 173600/- 64300/-
(per cow/year)
(Source: Farmer, DAE, DOF, DLS)

Bitter gourd, chilli and tomato have shown higher profit than other crops. The investment is low
and if farmer use improves production technology than profit will significantly increased.

Farmer capture fish from the open water and culture fish in homestead pond. Most of the cases
pond fish culture is a subsistent farming. So investment, productivity and income from the pond
are very low. Big traders and rich people have invested resources for catching open water fish.
Thus poor families are getting opportunity for selling labor in different terms during catching fish.

Table- 20: Cost analysis of different crop (33 decimal):

Item Boro rice Country bean Tomato Soybean Groundnut Mungbean
Seed 300 100 500 618.50 990 1000
Fertilizer 2000 2000 1550 415.50 445.50 200
Land preparation 300 2500 (macha) 800 577.50 577.50 200
Irrigation 1000 400 1000 - - --
Insecticide 1000 2500 1500 165 100 500
Labor cost 2500 1500 3000 742.50 1485.50 1000
Others 500 - 1000 500 500 --
Total expenses 7600 9000 9350 4630.50 4098.50 2900
Yield (mounds) 25 80 50 5.94 6.60 2
Income (Tk) 15000 48000 30000 6534 6600 4400
Profit 7400 39000 20650 1903.50 2501.50 1500
(Source: IDE staff observation)

25 | P a g e
Cattle, goat, poultry rearing is also subsistent farming in the project areas. Very little commercial
investment is found in this sector. However in the chars, farmers are rearing more than one
milking cow and buffalo as semi commercial basis. Cross breed cow is given highest profit but
primary investment is so high and poor farmer unable to invest.

Factors for the smallholders business:

 Land ownership:
Smallholders have very small pieces of land for crop cultivation and selling labor to others. They
are also taking land from the medium and rich farmer either share cropping or leased basis.
Recently leasing trend is increasing instead of share cropping because land owner forced the
small producers to take maximum risk of crop production. The total produces is sharing in 1:1
ratio if farmer bear total input cost and 2:1 if input cost shared equally by farmer and land owner.

 Input application and crop protection:

Overall input cost is very high because HYV seed cost is high, apply more urea, unwisely
application of pesticide etc. Farmer used local seed for crop production, that lowering the as
well as net profit compare to using HYV/hybrid seed. Growing vine crop required support
(macha) by bamboo which is also increasing the cost of production.

Small producer buy inputs from village market and difficult to get quality input, however large
farmer buy from district market. Majority of the small farmer buy inputs from the retailer/mobile
input sellers in credit and reimbursed after harvesting the crops. As a result, have chances to
get less quality input by the farmer, thus productivity has declined. Farmer sometimes not able
to pay or partially pay the inputs cost to the dealer. Thus the relation was decline.

 Irrigation:
Irrigation is required from October to April for crop production. Surface water is the best sources
of irrigation in these areas. Deep tube-well water is saline free but water of shallow tube-well
contains saline, which is not suitable for crop cultivation. Generally people are using canal and
pond water, lifting by LLP for irrigating their land. Using local equipments such as Seuti, Balti,
Done, Zazri and Shallow pump) for irrigating vegetable field and LLP, Shallow pump, Power
pump and Deep pump for irrigating field crops. Ultimately irrigation is big challenges for this
region and it’s costly. Sources and seasonal irregularities of irrigation are;
- Monsoon rain and surface water
- No irrigation facility available during dry season (Mid Feb - Mid May).
- Surface water contains high level of salinity during dry season
- Installation of deep tube-well for irrigation is very expensive and not feasible (as it is requires
water table at more than 2000 feet depth).

 Labor uses:
Poor farmers are uses labor as opportunity cost. The major sources of income for poor and
extreme poor is coming from open water fish catching. Non farm agriculture is also a good
source of income for the same. Poor farmer also not able to invest required amount of money for
cattle rearing as primary investment is high.

 Crop management practices:

It was observed that farmers are using own/open seed and local variety for crop cultivation.
Organic fertilizer using trend is very poor. Crops are infested by diseases and insects like other
part of the country but availability of quality input and technical advices is very poor.

26 | P a g e
Table- 21: Crop management practices:
Item Water Soybean Bitter Chili Ground Pulse Rice (T-
Melon ground nut (Mung) Amon)
Seed Packaged- Own- 80% Packaged - Own- 85% Own- 70% Own- 90% Own- 80%
use 80% Packaged- 100% Packaged- Packaged- bulk- 10% Packaged-
Own- 20% 20% 15% 30% 20%
Variety Glory Shohag Tiq , local, Local verity Zhinga Sonamung, Mota, BRRI
use goj korola Hybrid badam, Irrimung 41, BRRI
(sonic) Bari-8 (BARI-5) 29, BRRI 39
Fertilizer Urea, Urea, Urea, TSP, Urea, TSP, Urea, TSP, Urea Urea, TSP,
TSP, MP TSP, MP MP, cow MOP, MOP, MP
dung Gipsum, Gipsum
Major Fruit fly Cater Fruit fly Aphid, Hairy cater Pod borer BPH, Mazra
insect pillar thrips, Fruit pillar, hrips,
cutworm borer Aphid
Major Fruit rot, Virus Babri, Leaf Mosaic Leaf spot, Leaf spot Sheath
disease Leaf Virus (Leaf) virus, Leaf rust, blight, leaf
Fusarium leaf rot blast
wilt
Irrigation 6 times - 6 times 2-4 times 1 time if -- -
required
Weeding 2 times 3 times 2 times 2-3 times 2-3 times -- 2 times
(Source: discussion with farmer)

 Post harvest activities or primary processing:

This section is really poor in these regions especially from producer end. Small producers want
to get money back just after harvest and don’t bother to add profit through post harvest and
primary processing activities. Even the small volume of produces discouraged them from these
types of activities. In few cases large producers are doing post harvest and primary processing
of the produces to add profit. It is also found that faria and bepari were performed these
activities for the consumers/next level buyers. Small producers don’t know the end consumers
specific demand and the added margin from the post harvest activities.

It was found that app 15% of the fresh produces has been damaged during shifting from
producer’s level to the upazilla/district level consumers. The producers didn’t invest time and
energy for proper drying, grading, cleaning of paddy, ground nut, pulses and other crops.

Farmers are growing fish in homestead pond/ditch in a very traditional way. They released
fingerling and after a period harvest the fish from the pond. Improve practices such as pond
preparation, using recommended size and number of fingerling, feed, water cleaning, partial
harvesting are almost nil. As a result cost of production is lower but the net gain is very low.
Same observation was found for rearing livestock and poultry.

A lot of infrastructure improvement found positive impact on the livelihoods such as better
access to services, lower transportation costs minimizes transport time etc. However, the
geography of the region puts a big obstacle: chars, islands and vast network of rivers. Water
based transport system is important for the region and has considerably improved. Road
network considerably improved in last couple of years with the construction of bridges and
culverts. Road is good quality up to Upazila level however excellent in Bhola and Noakhali up to
community level. It helps to reduce the product damaged, cost as well as access during
monsoon season. Electrification and mobile network connect the rural market with distant high
value markets for selling products.

27 | P a g e
5. Agricultural Business Environment
In the project areas economy is moving by agriculture produces marketing. Though there is
huge foreign remittance coming in the areas of Noakhali and Laxmipur. However the product
market is not very systematic due to remoteness, difficulties in mode of transportation
particularly in Barisal and Patuakhali. The price of the produces raises due to high
transportation cost and loading-unloading damages.

Small producers selling produces either in the farm gate or village/union level market. Their
volume of produces is very small and far from the market. They are not organizing for marketing
of their produces that result low price of the produces. Even they are not closely link with the
market; as a result they don’t know the market prices, demand specification and seasonality.
Availability of the market information is one of the big constraints in the rural market and both
small traders and farmers are not aware about the benefit of sharing market information.

Dadon (taking money from the traders for guaranteed sell to the same traders with low prices
than the market) and advance selling of the produces is another type of marketing that lowering
producer’s benefit.

Table- 22: Profitable crops:

District Crops
Barisal Bitter gourd, tomato, brinjal, indian spinach, sweet gourd, chili, mung, lentil,
Patuakhali Bitter gourd, bringal, sweet gourd, indian spinach, chili, palne dal, water melon,
Bhola Snack gourd, chilli, cabbage, cauliflower, tomato, potato, mung
Noakhali Okra, country bean, soybean
(Source: discussion with farmer and traders)

According to the farmer opinion it was found that vegetable, lentil, mung, plain daal, soybean is
more profitable than other crops.

There are different types of actors found in the business such as faria, bepari, piker, arotder.
Faria is dominating the village level market and piker/bepari is dominating in union level big
market, upazilla and district markets. The major markets of the project areas:

28 | P a g e
Table- 23: Local major market for the products:
District Product Market
Bhola Mung Munshirhat, Hazirhat, Mustarhat, Boromirzakalu
Chili Ghuingarhat, Munshirhat, Hazirhat, Mustarhat, Boromirzakalu
Bean Mustarhat, Boromirzakalu, Munshirhat, Thugirgoal
Bitter gourd Boromirzakalu, Mustarhat, Munshirhat, Malirhat
Noakhali Soybean Sonapur bazar, Chowmuhuni, Khaser hat, dattar hat
Bean Hatia bazaar, Sonapur bazar, dattar hat
Ground nut Hatia bazaar, Ramgoti Bazar
Okra Ramgoti Bazar
Potuakhali Water melon Kalaiya bazaar
Mung Arojdighi bazaar bogi bazaar
Ground nut Kalaiya bazaar kolapara bazaar
Bitter gourd Dosmina bazaar and boga bazaar
Chili Mohipur bazaar and kolapara bazaar
Barisal Bean Boalia Bazar, Neamati bazaar, Kaligonj bazaar, paterhat bazaar
Indian spinach Neamati bazaar, Kaligonj bazaar, Khalashkathi
Bitter gourd Boalia Bazar, Neamati bazaar, Kaligonj bazaar, paterhat bazaar,
Khalashkathi
Chili Boalia Bazar, Neamati bazaar, Kaligonj bazaar, paterhat bazaar,
Khalashkathi
(Source: discussion with traders)

In each district there are 300-350 hat/bazaars for selling produces of the farmer. Among them
50-60 markets are formal, rest are informal markets means govt. didn’t get taxes from those
markets.

Table- 24: Sales of products at different markets:

District farm gate Local bazaar Union bazaar Upazilla bazar Dist bazaar
Barisal 15% 20% 15% 12 38%
Patukhali 25% 45% 20% 10% -
Bhola 5% 15% 15% 25% 40%
Noakhali 30% 35% 15% 15% 5%
(Source: discussion with traders)

Vegetable is coming from different villages to upazilla and district market. Farmer sales less
amount in the local market instead sales to faria/retailers of the district market. Farmers are
getting good price when retailer directly buy from the farm gate. Toll is issue for the farmer to
sales product in the local market. It seems to be high for the small producer but no way of
negotiation for reduced the figure.

Generally crop and fish export is more than the import. Exported products are paddy, guava,
hog palm, betel nut, fish, water melon, chilli, mung, ground nut and soybean. Especially water
melon, chili, ilsha fish is exporting to Dhaka, Chittagonj, Coxes Bazar, Rajshahi, khulna and
Mongla for India, Malaysia, USA but lees in amount.

29 | P a g e
Table- 25: Exported products
District Exported products Where
Noakhali Bean, chilli, felon, okra, soybean, ground Kawran bazaar thorugh chowmohoni
nut
Patuakhali Mung bean, watermelon, chilli, grass Dhaka, Kawran bazaar, Jessore , Khulna,
pea, plane dal, paddy North Bengal, Munshigonj, Norsindi
Bhola Mung bean, water melon, chilli, bringal, Kawran bazar and Shyam bazaar
bean, sweet potato, paddy, fish, milk
Barisal Chilli, bitter gourd, lantil, water melon Daulatpur khulna Jahan market, Chittagong
(Source: discussion with farmer and traders)

This region is food grain and fish surplus. But interesting, rice is importing from other part.
Because paddy is shifting to Narshindy for processing and than rice is importing from those
areas. 25- 40% vegetable demand was meets from the local production. Rest is imported from
other part of the country.

Table- 26: Imported products

District Imported products Where
Noakhali Bringal, cucumber, cabbage, Zinger, onion, Commilla, Mymensingh, Dhaka
Garlic turmeric
Patuakhali Rice, bringal, kakrol, radish, cauliflower, Manikgonj, Munshigonj, jessore, Magura,
cabbage, potato, ridge gourd, cucumber, Kustia, Sathkhira, Natore
tomato, bitter gourd, pointed gourd,
Bhola Rice, pointed gourd, kakrol, okra, Jessore, Magura, Jhinadha, Munshigonj,
cauliflower
Barisal Rice, tomato, okra, pointed gourd, bringal, Jessore, Magura, Jhinadha, Faridpur,
bean, cucumber, YLB Rangpur, Bogra
(Source: discussion with farmer and traders)

Demand and supply is always mismatched in production planning. Producers are not aware,
even less interested to know the end market demand of the products. But very few producers
get market information through mobile or from traders. But general farmers get price information
from other farmer.

In Bhoal and Noakhali internal road communication is better than other districts. So farmer are
selling more in the district market and the increment is average Tk 2 per kg in the district
market. Bepari plays the key role in business regulation. Every day selling price was fixed after
negotiation between seller and buyer. However variety and quality is determinant for fixing of
the product selling prices.

During selling vegetable arotder get 6% commission from the producers. It was observed that
relation between producers and traders is good but competitiveness in the business was found
among the traders. 50% fish has sold from the pond side and rest 50% sell through arotder.
After fixed of the fish price farmer harvested the fish but when arotder negotiation the price for
fish selling he took 3% commission.

Mohajan provide net, boat, fuel to the fisherman for catching from the open water. After catching
they bound to sell their catch to the mohajan. In that case fisherman got lower price compare to
market. It is felt that get out from the existing selling channel is challenge for the poor farmer.
Because all poor fisher man are some extend taking advance money or credit from the
arotder/mohajan/piker on term of product selling to them. Sometimes credit sales are taking
place based on relationship and product demand supply situation.

30 | P a g e
Table- 27: Sales price of the products:
Name of product Farm gate (Tk/Mound) Local market (Tk/Mound) Distant market (Tk/Mound)
Water melon 1200 1400 1550
Soybean 800 850 900
Bean 400 450-500 500-550
Lentil 2000 2280 2500
Groundnut 400 480 600
Chilli 1200 1350 1525
Rui 2800-2900 3200-3300 3400-3450
Catla 2700-2800 2900-3000 3150-3250
Telapia 2500-2600 2600-2700 2700-2800
Egg (No.) 400/1000 nos. 450-500 550-600
Milk (liter) 25/L 30/L (local) 40/L (after packaging)
(Source: discussion with traders and farmer)

Crop such as vegetable, rice, pulse, fruit, ground nut, soybean etc. is selling in different ways
and in different markets. Most of the cases vegetable is selling in local and regional markets and
price difference is higher in the up markets compare to other crops. But other crops have been
selling in local, regional and national markets. In each and every district there are some market
hubs for shifting products to other districts and national markets. Commission agent/arotder also
plays the vital role for shifting the products.

There are three general categories of input suppliers: private company, government and NGOs,
but private company is dominating the markets. The input distribution is mostly concentrated in
the regional/district level; going down up to the upazilla level, but union or village level channel
is very week. Due to high transaction cost, low demand and low sales, company very slowly
expanding their business up to the village level. Lal Teer Seed Co., Malik Seed Co., Supreme
Seed Co., Kashem Seed Co. and Rajdhani Seed Co. sales seed. Syngenta, Bayer Crop
Science and Setu sales pesticide in these regions

Input market actors are company, producer (fingerling), wholesaler/dealer/distributors, retailer

with shop and mobile input seller, Govt. officials, lead farmer, NGOs. Among them local markets
are controlled by the wholesaler/dealer/distributors. In all level sales is either cash or credit
depends on relationship. The relationship between farmers and input sellers is good but seller
provides very poor advices to the farmers due to poor knowledge and less competitiveness in
the final market. Each input seller (with permanent shop) have regular customer in the
village/union level. A good number of input sellers involved in seed, fertilizer and pesticide
selling in the district and upazilla level. But in the village level inputs (seed and pesticide) is
selling in a grocery shop.

17% farmers using quality inputs (seed-15%, pesticide-25%, fertilizer-20% and irrigation-10%).
More than 85% farmer depends on input retailer for technical information. Company provides
goods on credit and provides information about new technology, crops or variety etc. Dealer
sales 80% seed to the retailer and 20% to the farmers. Also retailer has credit sales (Tk 500-
5000) to the farmer who are regular buyer and have good relation. 40% farmers buy in cash,
30% return in monthly installment basis and 30% after harvesting of the crop. The retailers are
interested to receive training for increase their knowledge and able to provide technical advice
to the producer for increase his customer base and extend his business.

There are many actors like arotder, piker, retailers are involved in fish trading. Arotder is lending
money to the fishermen group. The arotder give loan to the boat owner with no interest but

31 | P a g e
made an agreement that catch fish should sell through his arot. Than boat owner was
distributed those money to the fish labor. In that case arotder get 8% for selling 100 take fish.
One boat owner/net owner was took money from 3-4 money lender. In that case during selling
fish by the boat owner conflict was found between boat owner and money lender.

Fish landing centers is play vital role for selling capture fish. Normally fish lending center is used
for selling ilsha. The arotder does not buy the fish rather he facilitates the auction process and
the highest bidder (paikers) will get the fish for which the arotder receives 3% commission of the
sale value from the farmer, which motivates the arotdar to obtain a high price on behalf of the
farmer. Generally 50% of the fresh fish are moved by this channel; another 50% goes directly
from the farmer to the paiker or to the retailer. Generally commercial table fish producers prefer
to sell their catch through arotdars, as the arotdar negotiates the auction to get higher price to
increase his commission but normal table fish producer (30-50 dec pond owner) like to sell fish
at farm gate due to save time, transportation cost and other like commission of arotder.

In Noakhali there are 50 big commercial fish farms. Among these Alamin Agro Fishery Ltd, Al -
Baraka Agro Fishery Ltd, Globe Agro Fisheries, Tamisa Agro Fishery, Laxmi Agro Fishery etc.
are most prominent. Normally these types of farm sell their produces to Noakhali municipality
market through arotder. The arotder facilitates the sale of 10-20 mounds fish per day, employing
two to three persons to manage the fish selling process. The arotdar manages the labor,
utilities, safety-ness, credit for piker etc.

Cattle, goat, poultry, duck, egg and milk is selling in a very traditional way. Generally produces
are sold in the local markets. Intermediaries like faria, piker, goala buying poultry, duck, egg and
milk from the producer’s home as well as from the local markets; however cattle and goat has
sold in the markets. Both goala and egg buyers have some contract producers, who take
advance money against their produces with earlier fixed price. Normally all livestock and poultry
products are consume by the local and regional market.

Processing company and big buyers: Very minimum agro processing plant is found in the
Barisal and Noakhali regions. These are paddy husking mills, lentil, mung, grass pea has
processed in this region. There are big buyers also buying products like ground nut, soybean,
water melon, mung bean etc. from this region. Private investment in the remote area is very low
instead concentrated in district and regional level

Business Association: Chambers of commerce, Bonik Somittee, Market Management

Committee, Goala (milk collector) Somittee and Seed Seller Somittee were actively involved in
the market and facilitated positive business environment. But most of the cases, association is
involved for provide credit support to the members, resolution of conflicts, balancing the
competition and provide grants.

32 | P a g e
Business model of water melon

Market description: Alipur Bazer is one of the major watermelon markets in Kalapara under
Patuakhali District. The market is situated at Latachapli union of Kalapara Upazila. It is center of
the watermelon growing areas. The watermelon growers of this area (near about 1000 nos
growers) mostly sell their product in this market. A total of 100 nos. traders purchased
watermelon from Alipur Bazar. Out of 140 nos trader's 60 nos are Bapari and 80 nos are forea.

Table - 28: Trader location status:

Bapari from the No. of Bepari
Union Upazila District
market come.
Local Aliput Bazar Latachapli Kalapara Patuakhali 20-25
Mohipur Bazar " '' '' 10-15
Kalapara Bazar Chapravanga '' '' 10-15
Kuakata Bazar Latachapli '' '' 5-6
Kalapara Bazar Kolapara '' '' 5-7
Out side Bapari - - Dhaka, Khulna 10-12
Jessore, Patuakhali
(Source: discussion with farmer and traders)

This markets run for 15 years. Normally near about 15000 MT watermelon sells in this market in
a season.

Table- 29: Forea location status

Forea comes from the Union Upazila District No. of forea
market come
Local Alipur Bazar Latachapli Kalapara Patuakhali 30-35
Chapli bazaar '' '' '' 20-22
Mahipur Bazar Khapravanga '' '' 20-22
Kuakata Latachapli '' '' 15-20
(Source: discussion with farmer and traders)

Types of Business: 2-4 Bapari prepare a group for running their business. Normally they buy
from Alipurhat and sell to out side bepari (70%) and some district markets (30%) such as
Patuakhali, Barisal, Kustia, Jessor, Khulna. At first they conduct with their selected arotder for
the information of demand, supply and price of the product. Then they search the product in the
market as well as in the community. Forea and some broker visit farmers field and chose
product from farmers field and they (forea and broker) bargaining with farmer and fix-up product
price. After that forea aggregate their product at Alipur Bazar and sell to local bepari (60%) and
out side bepari (40%).

On the other hand broker conduct with local and out side bepari and he sell his product by
commission and he get 0.5 - 1 taka/pitch watermelon. Each bepari has some forea who help
bapari to purchase required amount of product and forea get 0.25 - 0.5 taka commissions per
pitch watermelon. Commission determined on the basis of availability as well as the demand of
the product. Sometimes bepari visit farmer's field and they purchase direct from farmer. Another
selling pattern is farmer pick-up their product and aggregate at hat place and bargaining with
bapari and forea about product price and sell to them. After purchasing the watermelon they
aggregate the entire product at arot place for transportation. They hire 5-8 nos labors for
grading and loading to truck. Bepari hire a truck and carry their product to different place
(Dhaka, Patuakhali, Barisal, Kustia, Khulna, Jessor). Each bepari group has fixed arotder in

33 | P a g e
distant market by which they sell their product to retailer and big forea. When load truck they
sprayed some straw on truck but it also control jerkin.

Value proposition: Quality of product and communication of farm is the main feature to
determine the value. The characteristics of good quality watermelon are big size, round shape
and hardy. Glory, sugar emperor variety contains all characteristics of good quality watermelon.
Price of the product also depends on supply and demand.

Success factors: Arotder of different market in Dhaka, Kustia, Khulna, Jessore, Barisal &
Patuakhali is fixed for each bepari group and the market locations. At the beginning beparies
communicate with specific market. If the market has no demand then they go to another market.
They have a good relation with the arotder and get some benefit like security, trust, advance
money and sometimes loan also.

Key risks: Watermelon is a perishable product. If the product is unripe then the price falls
down. The market of distant market started from 6 am normally. If the product was not entering
the market timely then the price decline. Traders sometime can’t enter to the target market
timely due to trafic of ferry and transport problem and they will looser. Bepari pay special
attentions for reduced the rotten of watermelon at the time of purchase. They separate the
rotten one and load the truck one by one. They try to load this product at front side of the truck.
Normally good quality watermelon load at front, medium quality watermelon load at mid portion
and less quality/under size watermelon load at the end portion of the truck. Each truck can carry
10-12 tons watermelons and start from Alipur Bazer at 6.00 pm. Bepari has no fixed suppliers.
Farmer sells their product to that bepari who gives him competitive price. The price differs on
the basis of size, shape and availability in the market. The price is higher at the beginning but
gradually decreases up to the season and again increases at the end of the season.

Nature of business cycle: This business continues for 1.5 months. The investment for this
business has return within 2 days. Normally arotder give the money after selling the product but
sometimes they give money at the time of receiving the product. It depends on the relationship
and demand of the product. Normally maximum time the truck driver plays the role in money
transaction as the representative of bepari. On the other hand some local retailer purchase
locally from farmers & forea and sell to the local consumer.

Financial requirement: Generally one bepari group invest Tk. 70000-75000 for this business
for 1.5 months with their own money. Some of them take money from arotder in a very small
amount. When bepari supplies their product to arotder then arotder reimbursed his money first
and rest of money give to bepari. Sometimes bepari gives money to farmer and faria after
selling their product. But the whole process depends on the relationship. Bepari received
different services from both end of his business channel.

Table - 30: Service receives cost:

Sl.no. Name of service Cost Remarks
1. Commission for purchasing by forea/broker Taka 1000/truck
2. Straw purchase Taka 500/truck
3. Labor for grading Taka 2000/truck
4. Van cost for aggregate Taka 1000/truck
5. Track fare Taka 12000-15000/truck
(Source: discussion with farmer and traders)

34 | P a g e
Bepari pay market toll if they purchased at hat day and hat's place. Bepari paid commission to
arotder 1500/truck (fixed). Sometimes Bepari offered incentive to truck driver for faster and
smooth shifting the product.

Unit cost and pricing strategy: At first bepari takes information from arotder about the price of
watermelon. Then they consider all other cost including his profit at least 5 taka per piece then
fix his selling price.
Early- Tk 15-20/kg. (Price is differ on the basis of size, smaller is less price)
Pick- Tk 8-10/kg. (Size is almost similar in pick season)
Early- Tk 10-12/kg. (Price is less compare to early market price, because less sweet)

Competitive pressures: Some competitive pressure exposed to this business for less/over
supply of product and high/less demands in market. But generally the bepari group decided
previously about the amount that one group purchased.

Constraints: Major constraints of this business are the lack of storage facility and un-ripeness
(green). As a result sometimes bepari forced to sell their product at lower price. On the other
hand if availability of refrigerated van will ensure then the product will not rotten at the time of
transportation. Road communication is one of the major constraints of this area because of
uneven and rough road.

The below map demonstrates, there are ranges of selling channels for watermelon, however
farmers is selling either independently or through the traders depend on the opportunity cost.

Business linkages are being existed but it is more dominant vertically than horizontally. Product
base business linkage is more visible in the market. The strong linkage was found from
producers to hub, assembly point, union level big markets and/or upazilla level markets. Farmer
sells most of the produces to the faria and bepari and few to the retailer. From the hub/assembly
point traders were linked with district, regional, national markets and big buyer of company level
for shifting produces. Product loading and unloading spots are different for different producing
zones. However it was found that, vertical relationship among watermelon traders is good but
very week among the small producers. The business linkage is understood better by describing
the business linkages of a particular product and as well as the value chain map.

The majority of wholesalers buy watermelon from farmers using the services of faria. Both local
and outside bepari buy watermelon from faria, as well as local bepari sell to the outside bepari.
Finally outside bepari shift the produces to the regional and national market. Arotder is playing
vital role during buying from the regional market and selling to the consumer market. In both
situations bepari pay the commission to the arotder. Arotder provides market information to the
bepari, piker and faria. But few traders provide market demand and selling price information to
the farmer.

35 | P a g e
Value chain map of watermelon

Consumer Consumer of local, regional and national market

100%

Outside Retailer Regional

100%
Level and national Level 90%
(4965 MT)

Retailing
10%
Local Retailer (Local
Level, 15853 MT)
80% National Market (1211
MT)

60%

20%

Bapari from Local Bapari from outside

Whole 40%
Level (15853 MT)
selling (6056 MT)

30% 70%

Arotder

60% 30% 10%

Foria at Local Level

4065 (MT)

60% 20%
20%

Production Farmer/On farm

20,325 MT 10000 nos (F)

15% 25% 20% 15% 10%

Input Technical
supplier Seed seller Pesticide Fertilizer Irrigation
seller seller Information

36 | P a g e
6. Services Market
Generally producers asked services like credit, seed, fertilizer, pesticide and technical advice for
crop production and get optimum market price of their products. Input seller provides services
when producer buy product from them (embedded service). They help farmer to select seed and
pesticide for their crops. They provides information/advice to the farmers on pesticide and
fertilizer doses and few cases application method, variety performance, seed germination rate,
planting time, spacing and yield performance. Retailer collects this information from DAE or
company. Retailer/dealer also try to satisfy their customer by providing advice in the field, if
required than request company representatives to visit the farmers field.

DAE provides training; organize demonstration and field day for the farmers. Company
representative organize very few training and meeting at the farmer level, facilitated
demonstration and distribute leaflet. Farmer seeks technical advice from experienced farmer
and follows his practices. Paravet and vaccinator provide vaccination and treatment services to
the farmers on fee basis. They have a good professional link with ULOs. Different type of
services was describe below that farmer received and/or demand for the future:

 Financial Services:
NGO and Bank: A number of MFIs and national banks provide credit to the farmers. However
percent of crop production credit is insignificant. Most of the MFI provide credit on non crop and
non agriculture sector. On the other hand MIDPCR project has scope to provide business loan
to the project participants through partner NGOs (PRISM and Podakhep). Getting credit from
the banks is required lot of formalities that is difficult for the poor producers.

 Public Services:
DAE, DOF, DLS, BADC supposed to provide technical support and quality assurance up to the
farmer level but found limited due to shortage of man power and govt. have other mandates.
Though DANIDA RFLDC project jointly work with DOF and DLS could improve the service
mechanism.

 Somittee/Association Services:
There are good number of farmer associations such as Community Based Organization (CBO),
Village Model Farm (VMF), Water Management Group (WMG) facilitated by DANIDA, SC-USA,
CDSP and NRDS in both Naokhali and Barisal region. Other association like Bonik sommittee in
most of the market, fertilizer association, feed seller association, fish seller association is found
in the project areas. They are providing services (financial support as credit or grant, conflict
resolution…) to the members. But CBO provide financial support, advice and linkages services
to the members as well as farmers.

Char Development Settlement Project (CDSP) is a govt. lead project working in boyer char
areas under Hatia upazilla in its phase III. In that areas total farmer forum is 35 (Hatia- 21, # of
farmer 630 and Ramgoti- 14, # of farmer 420). At present BRAC is providing group support with
the help of local NGO- SAGORICA, NRAS and HASI.

Generally market based trader association take the management issues of the market such as
space allocation, conflict management, communication, provide loan/grant for business to the
small producers. They collect fund from the members and expenses day to day work.

37 | P a g e
 NGO Training and Extension:
DANIDA, SC-USA, CDSP, FAO, ACF providing agriculture based skill training and extension
services to the project participants as per their project objectives. DANIDA is fish and livestock
focused, SC-USA is vegetable focused, ACF and FAO is vegetable, livestock and fish focused.
CDSP focused on water management and crop production services.

 Traders’ Services:
Traders (faria, bepari, mohajan, arotder) services to the producer is mostly concentrate in credit
against crop and/or services. Poor producers were selling their crops or services (fish labour)
earlier to the traders with low market prices. In very few cases advance selling of the products
with granted market prices was found. It is unexpected that traders provide market information
to the small producers as well as faria. But found well sharing of the market information among
the bepari, mohajan and arotder.

 Company and input seller services:

A number of national and international companies are marketing agriculture input in the project
areas. According to the discussion with input sellers it was found that companies’ relation end
with district level dealers and some extend upazilla level seller. However the union/village level
input sellers are not systematically attached with the distribution channel. Thus they have very
poor knowledge, less aware about new products and improve production technology. As a result
input users are not getting good quality products, less option for using alternatives and got poor
technical advices form the sellers. But situation is improving i.e. company found interested to
expand their market share and business in the rural areas.

38 | P a g e
7. Constraint Matrix
Crops
Constraint
Market Access Week linkages between producer and
traders
Lack of access of producers to market
information.
High transport cost.
Producer are not get expected price when
they bring their product in the market.
Insufficient supply of products during peak
season
Lack of trust during product purchase and
sales
Production Lack of knowledge of farmer on seed
production and preservation method
Inadequate training and extension services
in the remote village.
Irrigation and salinity in the drought season
is the main constraint for crop production.
Lack of knowledge of the farmer on
appropriate application method and doses of
fertilizer/pesticide for crop production.
Lack of knowledge about new variety and /or
hybrid seed
Input supply  Unavailability of quality seed and high
prices
 Inadequate knowledge of input seller
about products quality, uses and
application method make them provide
wrong advice to the farmers.
 Week relation between producers and
input sellers.
 Lack of availability and access to fresh
water for irrigation
 channel.
39 | P a g e
Opportunity
Unmet local market for vegetable
Scope to improve knowledge and
practice of post harvest handling and
primary process
Competitiveness found among the
traders
Off season market could be captured
facilitated Group based marketing or
collection point establishment
Create opportunity in access to
market inf.
All actors are willing to improve the
trust among the business
Facilitate offseason and high value
crop production technology.
Increasing knowledge about seed
production technology
Increasing knowledge about improve
production technology particular
focused on pest management.
Hand pollination and sex pheromones
could improve the fruit quality of water
melon and gourd vegetable
production.
 Access to sources of quality input
with embedded technical advices
 Access to input seller for improve
technical know how about crop
production and management
 Improve business relation among
companies, seller and farmers
through linkage workshop.
 Work together with companies for
expanding inputs distribution
 Work with company, BARI and
DAE for demonstration new
product and technology
Fisheries
Constraint
Market Access  Compete with capture fish
during marketing.
 Cost benefit analysis was not
done to attract farmer.
 Dadon is major constraint for
getting right price for the poor
catcher.
Production  Not enough knowledge about
stocking density.
 Lack of access to fish feed and
quality of fingerling
 Not aware about FCR ratio.
 Farmer is reluctant in culture
fish due to getting fish from the
open water.
 Share pond and seasonal
pond (60-80%) is another big
constraint in this region
Input supply  Lack of input and extension 
services in village level.
 Input market (feed, fingerling,
medicine) and extension
service are very week.
 Mortality of fingerling is high.
 Low level of spawn production.
Opportunity
 Use the existing market channel for pond fish
marketing.
 Access to NGO credit could help producer to
invest in pond fish culture.
 Huge pond even each and every homestead
have pond/ditch.
 Building relation among hatchery, fingerling
producers, patiwala and farmers
 Trained farmer on stocking density and
species size for unit area of pond.
 Encouraged company for set demonstration
on FCR and fish treatment.
 Access of farmer on seasonal fish production
and maximize profit (quick).
 Could work with RFLDC (DANIDA), WFC and
private company for strengthening input
market and extension services.
Enough opportunity for growing fingerling.
 Strengthening linkages with company,
hatchery owner, fingerling producers and
patilwala.
 Increase private investment for establishment
of hatchery and nursery.

Livestock
Constraint Opportunity
Market Access  Lack of market information about  Unmet local demand of the products
demand of products.  Informal market of milk, egg, meet is
very high.
Production  Inadequate knowledge about  Availability of cattle feed except rainy
improve production technology of season
livestock and poultry rearing  Improve knowledge of farmer on cattle
 Not aware about AI, even no scope fattening
for AI at the remote location  Increase awareness about AI and make
 Natural feed is heavily scarce during the service available
rainy season (June- August)  Ensure the vet services up to the village
Input supply  Lack of input (feed, DOC  Strengthening linkages with company,
vaccination, medicine) and technical DOC producer and vaccinator/paravet.
services in the village level  Could work with RFLDC (DANIDA), and
 Input supply chain is very week. private company for strengthening input
 Vet services are not available for market and extension services.
livestock production.  Link with NGOs for getting financial
 Lack of access to finance support.

40 | P a g e
8. GLOSSARY
Extreme poor- hand to mouth, have only homestead or living in other land or kash land or
embankment, taking 1-2 meals a day but not sufficient in quantity and nutrition. Such as
agriculture labor/fishing as labor or sharing basis, begging,

Poor- having maximum 30 decimal lands with homestead, few are share cropper, pulling
rickshaw and van, taking loan, migrated, take 3 meals a day but not sufficient in quantity and
nutrition.

Retailers- These traders feed the customers. They buy products from the arats or mokams and
sell directly to the consumers. Retailers may be transient mobile vendors or sell from permanent
shops or stalls in retail markets.

Farias- These traders buy directly from the growers and sell to other traders or to the local
markets. They are mostly small-scale seasonal floating traders, and some combine farming with
trading.

Paikars- Are small scale wholesalers who collect products from small markets and send them to
big markets or sell to near-by aratdars (big wholesalers).

Beparies- These are rural assemblers who collect from growers or local markets and export to
wholesale-cum retail markets or distant urban wholesale markets.

Aratders or wholesalers- These are permanent shopkeepers and commission agents having
their own premises and staff in markets. They are the middle functionary between bepari and
retailers. Commissions are taken by them from both the parties. Their shops are called ‘Arats’.
Based on the volume of transactions, the bigger arats are called ‘mokams’. These groups of
traders mostly offer ‘dadon’ - cash as loans to producers, in return for buying the produce at a
pre-fixed price, which may be well below the market level.

41 | P a g e