Subsector Market Assessment of the Aromatic Rice Subsector, DFID & IDE Bangladesh, 2002

Description
IDE conducted a subsector market assessment of the fine and aromatic rice subsector to identify the constraints and forces driving changes in it, the demand for BDS, and the services and activities that would best serve smallholder farmers.

The report provides an in-depth description of the methodology used to carry out the study: information gathering and subsector mapping; identifying constraints and opportunities, services to address them, and existing providers; assessing the market for those services; and designing appropriate interventions to develop the services.


Methods for info gathering
Key informant interviews, secondary source research, subsector workshops

Summary of results
Bangladesh must decide whether to be self-sufficient in food grains or to raise farmer's incomes by marketing high value crops domestically and overseas, particularly fine and aromatic rice. Although the fine and aromatic rice business shows promise for helping poor farmers (low yields should mean a good return on investment), their profits are low due to irregularities in, and the large traders and millers who control, the market. Credit would allow farmers to store rice after harvest and sell later at a higher price.

Women's contribution to rice production is substantial (storage, processing, etc.), but as unpaid family workers they are not included in the subsector chain. Increased use of chemical fertilizers and pesticides is adversely affecting both soil and rice quality.

Operating environment and infrastructure constraints affect all players: farmers and traders want good roads, transportation, warehousing, and market sheds; millers need reliable electricity; and wholesalers must have safe storage facilities.

Improved cultivation practices and processing technologies, and expansion of and access to domestic and export markets are critical factors to growth of the subsector.



Associated Activities and Documents
Market Assessment
»	Subsector Market Assessment-Agro Tools, Bangladesh, IDE & KATALYST 2003
»	Vegetable Subsector Service Market Assessments, Bangladesh, IDE & KATALYST 2003