Trading relation with farias by farmers

The farmers of the selected area were intended to sell their product to faria than other middlemen. Though the farmers got more profit by selling their product to other middlemen but they did not want to sell their product to other middlemen due to some hazardous situation like carrying the product, unavailability of the vehicle, longer selling time etc. Table 8 shows the gross profit of farmers after selling their products to farias and other middlemen. The basis of the category depends on the farmer’s choice.

The gross profit and benefit cost ratio (BCR) of eggplant when sell to faria was 30950 BDT and 1.33, respectively; but when sell to other middlemen, it was higher 16920 BDT and 0.17, respectively than that of faria. Though the profit was higher to sell other middlemen but farmers` preference was to sell to farias.

Table 8. Gross profit analysis of eggplant farmers: trading with farias or other middlemen (in BDT*)

1 mound =40 kg, 1 sack=85kg

Parameters Selling to Faria Selling to other middlemen 1. Production cost (Av.)/ 27 decimiles (in BDT*)

a. Seed b. Fertilizer c. Pesticides d. Irrigation

e. Labor cost (including family labor and harvesting cost)

f. Transportation cost g. Taxes paid in market

500 4890 4160 1500 84000

500 4890 4160 1500 84000

720 360

2. Total cost (in BDT*) 95050 96130

3. Total production 360 mound 360 mound

4. Total income after selling (in BDT*) 360x350*=

126000

360x400*=

144000

5. Gross profit (4-2) (in BDT*) 30950 47870

6. Benefit Cost Ratio (BCR) 1.33 1.50

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The nature of the trading of farmers were grouped into the faria or other middlemen depending on the amount of eggplant sold (>50%) either to faria or to other middlemen.

Table 9 shows the basic criteria for such kind of categories. As farmers` preference was higher at selling farias, so I wanted to find the reasons behind it. Fig. 11 showed the reason why farmer chose specific farias to trade. Here farmer’s preference was to sell those who can buy large amount of product at a time. After that offer good price, cash exchange, help during cultivation and so on. Adding with, the pick production time farmers harvest a large amount of product and they need to sell it quickly. As farias roaming at the farm gate so it is easy and time saving method to sell the product to them.

Table 9. Eggplant Farmers’ choice for trading with farias or other middlemen

The preferences of farmer’s faria oriented and other middlemen oriented were calculated by t test (Table 10). The results suggest a positive relationship between farmers’ age, education, and land size. That`s means if age increase then the relationship with faria is increased. The aged farmers always want to escape bother and complex things. That’s why may be aged farmers want to trade with farias who deal their trade fairly. There also have some important social ties exist between farias and farmers, this findings was similar with Abebe et al, 2016; Alesina and La Ferrara, 2005; Hoffman et al., 1998; Fehr et al., 1997; Granovetter, 1985 and Hyden, 1983, who observed that, at

Parameters (n=116)

Frequency Percentage

100% sold to Faria 23 19.83

100% sold to other middlemen 12 10.34

>50% sold to Faria 70 60.35

>50% sold to other middlemen 6 5.17

More or less equal percentage to sell to Faria and other middlemen

5 4.31

Only to consumers 0 0

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the other end of the spectrum, younger farmers have limited trust in people and institutions. Additionally, older farmers were trading with faria for a long period of time.

Education was also having negative sign with significant, that means if education increased the trading relationship with farias were decreased. Educated farmers have more knowledge about market, can read newspaper, can operate internet so most of them wanted to sell eggplant to other middlemen. Land size operated an important role for maintaining relationship with farias. Because, when the crop production was huge, farmers need to sell quickly for the perishable nature. And also difficult to bring to the market as the transportation system is very poor in Bangladesh, the cost of transport is also very high. At this situation farias were roaming in the farm gate, toke part of communication with farmers. That’s why the relationship between farmers and farias were good.

No of farmers

Fig. 11. Reasons of trading with faria by Eggplant farmers

0 10 20 30 40 50

Offer good price Less bargaining Cash exchange Prevoiusly known Same religion Help during cultivating…

Buy large amount at a time Well manared Trusted person Relative/neighbour

Eggplant

Reasons

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Table 10. Factors influencing Eggplant farmers’ decisions of trading based on t-test

Factors

Levene's Test for Equality of Variances

t-test for Equality of Means

F Sig. t df Sig. (2

tailed)

Age Equal variances assumed 3.06 0.082* 1.22 114 0.224

Equal variances not assumed 1.43 43 0.157

Family size Equal variances assumed 1.04 0.308 0.67 114 0.503

Equal variances not assumed 0.74 38.80 0.461

Education Equal variances assumed 11.74 0.000*** -3.75 114 0.000

Equal variances not assumed -4.57 45.87 0.000

Livestock no.

Equal variances assumed 0.32 0.569 0.26 114 0.790

Equal variances not assumed 0.28 36.66 0.778

Total land Equal variances assumed 21.74 0.000*** 2.61 114 0.010

Equal variances not assumed 4.41 103.66 0.000

Eggplant land

Equal variances assumed 10.36 0.001*** 2.36 114 0.019

Equal variances not assumed 4.27 113.82 0.000

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Conclusion

It is slightly difficult to conclude with a concrete decision that faria implies a positive or negative role in the rural marketing system of vegetables and also on the welfare of the farmers. But I found the antagonistic results against the conventional claim that the extra linkage of vegetable marketing channel, faria can be eliminated.

From our results it was evident that for selling the maximum proportion of the product, farmers depend on the faria which reflects the essentiality of the faria for the marketing system of vegetable in the study area. But I cannot implies this conclude remarks to whole Bangladesh because other types of marketing channels can be found in other places of Bangladesh.

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Chapter 3

Logistic regression is a useful tool for identifying the farmer faria relationship of Bangladesh