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 and
urbanization are the key factors behind this change. The agricultural marketing system is traditional and
not properly functional. A group of intermediaries controls the market and supply chain of agricultural
products. 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 horticultural
crops is not sufficient yet. This situation has led to severe bottlenecks in the processes of marketing. The
study aimed at assessing the present marketing system of agricultural products in Sylhet and at
determining the marketing constraints and potentialities of farm products in this area. It was found that
the net marketing margin was the highest in the case of the retailer and the lowest in case of Aratdar. But
Return on operating capital was the highest for the Aratdar because they did not need to purchase the
product they handle. The farmers identified the high price of seed as the topmost constraint in production
and marketing systems. Re-structuring of Market Management System and updating regulatory and
institutional set up are highly essential for the proper functioning of the market system.