Marketing Efficiency and Value Chain Analysis: The Case of Garlic Crop in Bangladesh

Garlic is a highly profitable crop primarily used for medicinal and culinary purposes. The study was undertaken to determine the marketing system, marketing cost, marketing margin, and marketing efficiencies and to examine the value chain of garlic, aiming to determine the value addition in different steps of garlic marketing. A purposive and simple randomized sampling procedure was used in selecting primary data. Marketing margin, profit, efficiency ratio, value addition, etc., were calculated by different relevant equations and formulas. Four major marketing channels were identified for domestically produced garlic marketing. Channel-3 was the most crucial supply chain through which 40% of domestically grown garlic reaches consumers. Marketing margin and profit were highest in retailers than in other intermediaries. Out of four marketing channels, Channel-2 was more efficient than those different channels. Six actors like; farmers, local traders, traders, commission agents, wholesalers, retailers, and consumers are identified who are involved in the garlic value chain activities. The retailer added the highest amount of value per unit of garlic and that of the lowest in wholesaler. Eleven marketing problems were identified; price fluctuation, high transport cost, and lack of loan facilities were the primary problems. Therefore, government intervention is urgently necessary to stabilize the price of garlic, loan facilities should be provided to the intermediaries, and transportation cost should be kept reasonable.