Supply chain improvement and product diversification through integrated zoning of Bangladesh rice milling industry

Abstract

The purpose of this paper is to assess the integration status and associated weaknesses of informal rice milling industry in Bangladesh, and explores the achievable benefits through reorientation of the informal rice industry into integrated and specialised rice industry zone(s) (SRIZ). The study investigates the feasible integrated development of rice and paddy/rice oriented supplementary industries through clustering and grouping into SRIZ. Furthermore, it identifies new opportunities in terms of business, technology up gradation, product diversification, industry sustainability, standardisation and food security in an otherwise traditional rice supply chain of Bangladesh and similar other rice producing developing countries. Both structured and semi-structured questionnaire survey have been conducted to know the detail characteristics of sporadically developed rice manufacturing industry in various parts of Bangladesh. Using proposed integration evaluation criteria, rice supply chain integration status is evaluated along with identification of associated problems due to current poor integration situation. Analysis of endogenous and exogenous shortcomings of informal rice mills system in Bangladesh engenders solution mechanisms through promotion of integration, clustering and specialised zoning of rice mills. The findings of this research will be useful both for policy makers and agribusiness researchers in rice-producing countries, especially, which have informal setup of rapidly growing rice mills.