Agribusiness chain for chilli

The specific objectives of the study were to examine the seed supplies, costs and returns, marketing system, seasonal and cyclical price variation, and to estimate the spatial market integration of chilli. Twenty farmers and twenty five intermediaries were selected through convenience sampling procedure. The study was based on both primary and secondary data. Primary data were collected through face to face interview with the respondents from September to October 2010 and secondary data were collected from weekly price bulletin of Department of Agricultural Marketing (DAM), Statistical Yearbook of Bangladesh, and Yearbook of Agricultural Statistics etc. About 90 percent farmers used home supplied seeds in the study area. The intermediaries involved in chilli marketing were: paikars- local and non local, aratdars, retailers. Paikars generally purchased chilli from the farmer and offer same to the aratdars and retailers. In the study area, about 40 percent farmer’s sells dry chilli and 60 percent farmers found who sells both green and dry chillies. In case of processing of chilli, farmers, and retailers cum millers were found as processor at local level. The net profit per kg for farmer and retailer cum millers were Tk. 40.95 and Tk. 52.58, respectively and the return over working capital were 63.93 and 39.06 percent respectively. Seasonal price variation of chilli was very high, range of seasonal price variation was 145.35; highest price index (196.88) was found in the month of October, and the lowest was in the month of March (51.53). The cyclical price variation shows 3 to 5 year cycle for the dry chilli. Analysis of market integration shows that the chilli markets in Bangladesh were well integrated that means changing of price information was quickly delivered to other markets in Bangladesh.

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