IDEAS home Printed from https://ideas.repec.org/a/ags/bdbjaf/313839.html
   My bibliography  Save this article

Demand, Supply And Reasons For Price Hike Of Potato In Bangladesh

Author

Listed:
  • S. A. Sabur
  • M.A. Monayem Miah
  • M. Esmat Ara Begum
  • M. Shahrukh Rahman
  • M. M. Uddin Molla

Abstract

The objective of the study is to find out the factors behind the supply, demand and thereby prices of potato and explore the existence of syndicate in the market. The study is mainly based on secondary data. Additionally, some qualitative data were collected through FGD and KII from Bogura, Rangpur and Munshiganj areas. The area, production and yield of potato grew by 4.58%, 6.61% and 1.95%, respectively per annum since independence. The production of HYV potato rose sharply, while local one rose at a slower pace. Potato production exhibits high fluctuation with roughly three years’ cycle, which sharply decreased in the recent past. The nominal prices of potato witnessed upward trend, while real prices experienced downward trend since independence. There exists wide seasonal price variation of potato with the lowest price in March and the highest in December. Potato market seemingly integrated as prices at all levels move together. The rising trend of potato prices seems to be halted after re-fixing prices by DAM. Real prices displayed wide price variation as volatility index stands at 73.16%. The total surplus of potatoes in 2020 stands at 3.40 lakh MT which is much lower than the previous years. The profit earned by the potato growers was estimated at around Tk. 1.1 million /ha. The estimated DRC implies that Bangladesh had comparative advantage in potato production for export promotion. In 2020, 73% capacity of 392 cold storages in operation is utilized. It is concluded that main cause of the price hike was the artificial crisis created by some profit seeking traders rather than the low production and higher consumption of potato in the country. Fixation of price, regular market monitoring and taking legal action to the artificial crisis creators may be the way of avoiding unexpected price hike of potato in the country.

Suggested Citation

  • S. A. Sabur & M.A. Monayem Miah & M. Esmat Ara Begum & M. Shahrukh Rahman & M. M. Uddin Molla, 2021. "Demand, Supply And Reasons For Price Hike Of Potato In Bangladesh," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 42(1), June.
    • Handle: RePEc:ags:bdbjaf:313839
    DOI: 10.22004/ag.econ.313839
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/313839/files/Paper-6-Sabur.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.313839?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Christopher L. Gilbert, 2010. "How to Understand High Food Prices," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 398-425, June.
    2. William A. Masters & Alex Winter-Nelson, 1995. "Measuring the Comparative Advantage of Agricultural Activities: Domestic Resource Costs and the Social Cost-Benefit Ratio," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 243-250.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arifa Jannat & Kentaka Aruga & Jun Furuya & Miyuki Iiyama, 2022. "Investigating the Impact of International Markets on Imported and Exported Non-Cereal Crops in Bangladesh," Agriculture, MDPI, vol. 12(6), pages 1-16, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Etienne, Xiaoli L., 2015. "Financialization of Agricultural Commodity Markets: Do Financial Data Help to Forecast Agricultural Prices?," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205124, Agricultural and Applied Economics Association.
    2. Duc Huynh, Toan Luu & Burggraf, Tobias & Nasir, Muhammad Ali, 2020. "Financialisation of natural resources & instability caused by risk transfer in commodity markets," Resources Policy, Elsevier, vol. 66(C).
    3. Athanasios Triantafyllou & Dimitrios Bakas & Marilou Ioakimidis, 2023. "Commodity price uncertainty as a leading indicator of economic activity," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 4194-4219, October.
    4. Thibault Fally & James Sayre, 2018. "Commodity Trade Matters," 2018 Meeting Papers 172, Society for Economic Dynamics.
    5. Czudaj Robert L., 2020. "The role of uncertainty on agricultural futures markets momentum trading and volatility," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 24(3), pages 1-39, June.
    6. Nicholas Apergis & Alexandros Gabrielsen & Lee Smales, 2016. "(Unusual) weather and stock returns—I am not in the mood for mood: further evidence from international markets," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 30(1), pages 63-94, February.
    7. Udo Broll & Peter Welzel & Kit Pong Wong, 2013. "Price Risk and Risk Management in Agriculture," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 7(2), June.
    8. John Baffes & Tassos Haniotis, 2016. "What Explains Agricultural Price Movements?," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 706-721, September.
    9. Scott H. Irwin & Dwight R. Sanders, 2011. "Index Funds, Financialization, and Commodity Futures Markets," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(1), pages 1-31.
    10. Haile, Mekbib G. & Kalkuhl, Matthias & Braun, Joachim von, 2013. "Inter-and intra-annual global crop acreage response to prices and price risk," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149695, Agricultural and Applied Economics Association.
    11. Hovhannisyan, Vardges, 2016. "New Evidence On The Structure Of Food Demand In China: An Easi Demand Model Estimated Via Panel Data Techniques," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236889, Agricultural and Applied Economics Association.
    12. Matteo Manera & Marcella Nicolini & Ilaria Vignati, 2012. "Returns in commodities futures markets and financial speculation: a multivariate GARCH approach," Quaderni di Dipartimento 170, University of Pavia, Department of Economics and Quantitative Methods.
    13. Deborah Bentivoglio & Adele Finco & Mirian Rumenos Piedade Bacchi, 2016. "Interdependencies between Biofuel, Fuel and Food Prices: The Case of the Brazilian Ethanol Market," Energies, MDPI, vol. 9(6), pages 1-16, June.
    14. Bentivoglio, Deborah & Finco, Adele & Bacchi, Mirian, 2015. "Examining Price Transmission between Fuels and Food Prices: the Brazilian Sugar-Ethanol Market," 2015 Conference, August 9-14, 2015, Milan, Italy 211327, International Association of Agricultural Economists.
    15. Volpe, Richard & Leibtag, Ephraim S. & Roeger, Edward, 2013. "How Transport Costs Affect Fresh Fruit and Vegetable Prices," Economic Research Report 161355, United States Department of Agriculture, Economic Research Service.
    16. Belke, Ansgar H. & Bordon, Ingo G. & Hendricks, Torben W., 2014. "Monetary policy, global liquidity and commodity price dynamics," The North American Journal of Economics and Finance, Elsevier, vol. 28(C), pages 1-16.
    17. World Bank, 2008. "Ukraine Agricultural Competitiveness," World Bank Publications - Reports 19478, The World Bank Group.
    18. Boroumand, Raphaël Homayoun & Porcher, Thomas, 2023. "Volatility contagion and connectedness between WTI and commodity markets," Finance Research Letters, Elsevier, vol. 58(PA).
    19. Luo, Jiawen & Ji, Qiang, 2018. "High-frequency volatility connectedness between the US crude oil market and China's agricultural commodity markets," Energy Economics, Elsevier, vol. 76(C), pages 424-438.
    20. Kannapiran, Chinna A. & Fleming, Euan M., 1999. "Competitiveness And Comparative Advantage Of Tree Crop Smallholdings In Papua New Guinea," Working Papers 12911, University of New England, School of Economics.

    More about this item

    Keywords

    Demand and Price Analysis;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:bdbjaf:313839. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/febaubd.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.