Why is the Farm Gate Price of Paddy Lower in Deficit Production Areas of Bangladesh? -A Case Study of Brahmanbaria District-

Junayed Uddin Ahmed and Maya Sulatana
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Junayed Uddin Ahmed: Department of Economic Policy, Nagasaki Wesleyan University, Nagasaki, Japan
Maya Sulatana: The United Graduate School of Agricultural Sciences, Kagoshima University, Kagoshima, Japan

Journal of Economic Analysis, 2025, vol. 4, issue 3, 212-225

Abstract: Bangladesh has made significant progress in paddy production; however, farmers in deficit production areas, such as Brahmanbaria, continue to face challenges in receiving fair farm-gate prices. This study investigates the factors contributing to low farm-gate prices for paddy farmers in Brahmanbaria, a district with a 3% production deficit. Using a mixed-methods approach, primary data were collected from 113 paddy farmers via semi-structured questionnaires, and secondary data were sourced from government and international publications. The study adopts a descriptive research design, supported by statistical analyses conducted using Excel and SPSS 18. The findings reveal that farmers predominantly sell their produce to intermediaries due to limited access to storage, transportation, and value-addition facilities, reducing their bargaining power and resulting in lower prices. Additionally, price volatility, market manipulation, and lack of education exacerbate the problem. Empirical evidence highlights that farmers earn less from paddy cultivation compared to off-farm employment, leading to reduced investment in paddy farming. The study underscores the need for government interventions to improve marketing infrastructure, establish cooperative societies, and enhance farmers' negotiating capacity. Despite these findings, limitations include modest sample size and reliance on quantitative methods, which may not capture the full complexity of the issue. Future research should explore qualitative insights and broader sampling to better understand the dynamics of paddy pricing. This research contributes to the literature by providing a comprehensive analysis of farm-gate price determinants in deficit areas, offering practical recommendations for policymakers to empower farmers and ensure fair pricing mechanisms.

Keywords: Farm Gate Price; Deficit Areas; Bangladesh; Paddy Production; Brahmanbaria (search for similar items in EconPapers)
Date: 2025
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