The Marketing System of Agricultural Products in Bangladesh: A Case Study from Sylhet District

Abstract

The monotonous demand for rice in Bangladesh is shifting rapidly. Positive economic growth andurbanization are the key factors behind this change. The agricultural marketing system is traditional andnot properly functional. A group of intermediaries controls the market and supply chain of agriculturalproducts. A proper functional market is vital for food producers, processors, traders, and consumers.Bangladesh has become self-sufficient in cereal crop production, but the production of horticulturalcrops is not sufficient yet. This situation has led to severe bottlenecks in the processes of marketing. Thestudy aimed at assessing the present marketing system of agricultural products in Sylhet and atdetermining the marketing constraints and potentialities of farm products in this area. It was found thatthe net marketing margin was the highest in the case of the retailer and the lowest in case of Aratdar. ButReturn on operating capital was the highest for the Aratdar because they did not need to purchase theproduct they handle. The farmers identified the high price of seed as the topmost constraint in productionand marketing systems. Re-structuring of Market Management System and updating regulatory andinstitutional set up are highly essential for the proper functioning of the market system.