Analysis of primary food supply chain transformation and its impact on chain sustainability: case study of Bangladesh rice industry

Abstract

The generally traditional rice industry of Bangladesh, like other rice growing developing countries, has been going through significant transformation in recent decades, which casts a considerable shadow on the overall rice value chain, threatening the chain stability. This paper focuses on how this transformation is shaping up the industry, in terms of increasingly complex supply chain structure, increased number of supply chain players, introduction of new technologies, rapid informal growth of market size and significant transportation modal shift to costlier road mode. The study finds that supply chain structure and transportation play a significant role in rice processing, chain valuation, marketing and distribution system. The rapid unplanned growth of the sector rising to informally evolved supply chain and overwhelming use of road-based transportation have significant impact on the rice price and relevant food sector sustainability situation in Bangladesh. The lessons learned from this study can help the staple food policy directions in Bangladesh and other rice growing developing countries.