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Market Participation Decision Of Smallholder Farmers And Its Determinants In Bangladesh

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  • Osmani, Ataul Gani
  • Hossain, Elias

Abstract

This paper explores the market participation decision of smallholder farmers in Bangladesh and tries to sort out the most important factors that influence smallholder farmers’ decision to participate in the output market to sell their produce in Bangladesh. To examine the relationship between the smallholder farmers’ decision to participate in the market and the factors that affect these farmers’ decision, a Probit regression model is employed. For this purpose this study uses primary data collected from 100 smallholder farmers of Durgapur Upazila under Rajshahi District. Main findings of this study indicate that there is moderate level of market participation by the households who decide to participate in the market with 57% sales of their produced crops. It is found that farm size, household labour, income from livestock and farm income might be the main factors that affect the smallholder farmers’ decision to participate in the output market. These findings also suggest that the smallholder farmers would participate more and more in the output market, if farm size, household labour and farm income are increased in one hand and income from livestock is decreased on the other hand. The originality of this paper is that it examines the phenomenon of smallholder farmers’ commercialization in Bangladesh from the perspectives of market participation, which may create an opportunity for further constructive debate. Finally, development market infrastructure, provision of marketing incentives to smallholder farmers and development of an institutionalized marketing information service are recommended to enhance commercialization of agriculture in Bangladesh.

Suggested Citation

  • Osmani, Ataul Gani & Hossain, Elias, 2015. "Market Participation Decision Of Smallholder Farmers And Its Determinants In Bangladesh," Economics of Agriculture, Institute of Agricultural Economics, vol. 62(1), pages 1-17, March.
    • Handle: RePEc:ags:iepeoa:200519
    DOI: 10.22004/ag.econ.200519
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    7. Gerson K. Kampungu & Emma Nekayi & Dortea N. Nakandjibi & Gilbert M. Mulonda, 2024. "Running Head: Factors Affecting Market Access for Horticultural Farmers," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(4), pages 1557-1569, April.
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    9. OTITOJU, Moradeyo Adebanjo & AHMADU, Danjuma & NWANDU, Peter Ifeanyichukwu, 2021. "Determinants Of Yam Agribusiness Participation Decisions Among Rural Households," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 24(2), October.
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    11. Adebayo, C. O. & Oladele, A. O. & Tanko, S. U., 2018. "Commercialization among Smallholder Maize Farmers in Federal Capital Territory, Abuja, Nigeria," Nigerian Journal of Agricultural Economics, Nigerian Journal of Agricultural Economics, vol. 8(1), October.
    12. Abdullah Al-Maruf & A. K. M. Kanak Pervez & Pradip Kumar Sarker & Md Saifur Rahman & Jorge Ruiz-Menjivar, 2022. "Exploring the Factors of Farmers’ Rural–Urban Migration Decisions in Bangladesh," Agriculture, MDPI, vol. 12(5), pages 1-16, May.
    13. Christopher Ugochukwu Nwafor & Abiodun A. Ogundeji & Carlu van der Westhuizen, 2020. "Adoption of ICT-Based Information Sources and Market Participation among Smallholder Livestock Farmers in South Africa," Agriculture, MDPI, vol. 10(2), pages 1-13, February.
    14. Dube-Takaza, Tryphina & Maumbe, Blessing M. & Parwada, Cosmas, 2022. "Vertical Coordination to Smallholder Small Grain Growers in Zimbabwe: Benefits of Contract Farming and Policy Implications," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 13(04), December.
    15. Mahuwi, Leticia & Israel, Baraka, 2023. "Supply Chain Issues Affecting Market Access Among Smallholder Maize Farmers in Mbozi District, Tanzania," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 11(2), April.
    16. Samuel Sekyi & Benjamin Musah Abu & Paul Kwame Nkegbe, 2020. "Effects of farm credit access on agricultural commercialization in Ghana: Empirical evidence from the northern Savannah ecological zone," African Development Review, African Development Bank, vol. 32(2), pages 150-162, June.
    17. Thomas B. Yaméogo & Aymar Y. Bossa & Bio M. Torou & Jean-Louis Fusillier & Dapola E. C. Da & Yacouba Yira & Georges Serpantié & Fourvouon Somé & Mariam M. Dama-Balima, 2018. "Socio-Economic Factors Influencing Small-Scale Farmers’ Market Participation: Case of Rice Producers in Dano," Sustainability, MDPI, vol. 10(12), pages 1-16, November.
    18. Ogunleye, W., 2018. "Output Market Participation by Smallholders Rice Farmers in Obafemi Owode Local Government Area, Ogun State, Nigeria," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277055, International Association of Agricultural Economists.
    19. Ali Sher & Saman Mazhar & Hossein Azadi & Guanghua Lin, 2020. "Smallholder Commercialization and Urban-Rural Linkages: Effect of Interest-Free Agriculture Credit on Market Participation of Rice Growers in Pakistan," Land, MDPI, vol. 10(1), pages 1-24, December.
    20. Rana, Masud & Maharjan, Dr.Keshav Lall, 2021. "Analysis of Factors Affecting Market Participation By Brinjal Farmers: A Case Study of Jashore and Narsingdi District, Bangladesh," 2021 Conference, August 17-31, 2021, Virtual 315398, International Association of Agricultural Economists.

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