IDEAS home Printed from https://ideas.repec.org/a/ags/iepeoa/200519.html
   My bibliography  Save this article

Market Participation Decision Of Smallholder Farmers And Its Determinants In Bangladesh

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/200519/files/11%20EP%201%202015.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.200519?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. Cadot, Olivier & Dutoit, Laure & Olarreaga, Marcelo, 2006. "How costly is it for poor farmers to lift themselves out of poverty?," Policy Research Working Paper Series 3881, The World Bank.
    2. Elina Eskola, 2005. "Commercialisation and Poverty in Tanzania: Household-level Analysis," Discussion Papers 05-27, University of Copenhagen. Department of Economics.
    3. Alene, Arega D. & Manyong, V.M. & Omanya, G. & Mignouna, H.D. & Bokanga, M. & Odhiambo, G., 2008. "Smallholder market participation under transactions costs: Maize supply and fertilizer demand in Kenya," Food Policy, Elsevier, vol. 33(4), pages 318-328, August.
    4. Arega, D.A. & Manyong, Victor M. & Omanya, G. & Mignouna, H.D. & Bokanga, M. & Odhiambo, George D., 2008. "Smallholder marketed surplus and input use under transactions costs: maize supply and fertilizer demand in Kenya," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52074, African Association of Agricultural Economists (AAAE).
    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. Chukwujekwu A. Obianefo & John N. Ng’ombe & Agness Mzyece & Blessing Masasi & Ngozi J. Obiekwe & Oluchi O. Anumudu, 2021. "Technical Efficiency and Technological Gaps of Rice Production in Anambra State, Nigeria," Agriculture, MDPI, vol. 11(12), pages 1-13, December.
    2. Dlamini, Lucinda Nosizo, 2019. "Determinants of commercial orientation and the level of market participation by women maize farmers in Eswatini," Research Theses 334763, Collaborative Masters Program in Agricultural and Applied Economics.
    3. Pei-An LIAO & Hung-Hao CHANG & Junlin HE & Kannika SAELIW, 2017. "Diversification of marketing strategies among small farms: empirical evidence from family farms in Taiwan," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(11), pages 493-501.
    4. Nyein Nyein Kyaw & Soojung Ahn & Sang Hyeon Lee, 2018. "Analysis of the Factors Influencing Market Participation among Smallholder Rice Farmers in Magway Region, Central Dry Zone of Myanmar," Sustainability, MDPI, vol. 10(12), pages 1-15, November.
    5. Rajabu Joseph Kangile & Charles Peter Mgeni & Zena Theopist Mpenda & Stefan Sieber, 2020. "The Determinants of Farmers’ Choice of Markets for Staple Food Commodities in Dodoma and Morogoro, Tanzania," Agriculture, MDPI, vol. 10(5), pages 1-12, April.
    6. Masud Rana & Keshav Lall Maharjan, 2022. "Participation of Brinjal Farmers in Large and Small Wholesale Markets: Factors Influencing Farmers’ Decisions and Impact on Producers’ Prices," Sustainability, MDPI, vol. 14(4), pages 1-20, February.
    7. 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.
    8. Simphiwe Innocentia Hlatshwayo & Mjabuliseni Ngidi & Temitope Ojo & Albert Thembinkosi Modi & Tafadzwanashe Mabhaudhi & Rob Slotow, 2021. "A Typology of the Level of Market Participation among Smallholder Farmers in South Africa: Limpopo and Mpumalanga Provinces," Sustainability, MDPI, vol. 13(14), pages 1-19, July.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    15. 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.
    16. 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.
    17. 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.

    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. Momanyi, Denis & Lagat, Prof. Job K. & Ayuya, Dr. Oscar I., 2016. "Analysis of the Marketing Behaviour of African Indigenous Leafy Vegetables among Smallholder Farmers in Nyamira County, Kenya," MPRA Paper 69202, University Library of Munich, Germany, revised 27 Jan 2016.
    2. Melkani, Aakanksha & Mason, Nicole & Mather, David & Chisanga, Brian & Jayne, Thom, 2021. "Smallholder Market Participation and Choice of Marketing Channel in the Presence of Liquidity Constraints: Evidence from Zambian Maize Markets," 2021 Conference, August 17-31, 2021, Virtual 315273, International Association of Agricultural Economists.
    3. Larochelle, Catherine & Alwang, Jeffrey, 2015. "Explaining Marketing Strategies among Bolivian Potato Farmers," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 54(3), pages 1-24, September.
    4. Simphiwe Innocentia Hlatshwayo & Mjabuliseni Ngidi & Temitope Ojo & Albert Thembinkosi Modi & Tafadzwanashe Mabhaudhi & Rob Slotow, 2021. "A Typology of the Level of Market Participation among Smallholder Farmers in South Africa: Limpopo and Mpumalanga Provinces," Sustainability, MDPI, vol. 13(14), pages 1-19, July.
    5. Andrew McKay & Chiara Cazzufi & Emelie Perge, 2015. "Commercialization in agriculture in rural Vietnam, 2006-14," WIDER Working Paper Series 096, World Institute for Development Economic Research (UNU-WIDER).
    6. Nguyen Hung Anh & Wolfgang Bokelmann, 2019. "Determinants of Smallholders’ Market Preferences: The Case of Sustainable Certified Coffee Farmers in Vietnam," Sustainability, MDPI, vol. 11(10), pages 1-20, May.
    7. Tabe-Ojong, M.P.J. & Mausch, K. & Woldeyohanes, T. & Heckelei, T., 2018. "A Triple-Hurdle Model of the Impacts of Improved Chickpea Adoption on Smallholder Production and Commercialization in Ethiopia," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277287, International Association of Agricultural Economists.
    8. Muricho, G. & Kulundu, D. & Sule, F., 2018. "Impact Assessment of Agricultural Commercialization on Food Security Among Smallholder Farmers in Kenya: An Application of Correlated Random Effects," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277325, International Association of Agricultural Economists.
    9. Pacillo, Grazia, 2016. "Market participation, innovation adoption and poverty in rural Ghana," Economics PhD Theses 0916, Department of Economics, University of Sussex Business School.
    10. Djomo Choumbou Raoul Fani & Ukpe Udeme Henrietta & Emmanuel Njock Oben & Donald Denen Dzever & Onyeje Hephzibah Obekpa & Auguste Tamba Nde & Mohamadou Sani & Mbong Grace Annih & Dontsop Nguezet Paul M, 2021. "Assessing the Performance and Participation among Young Male and Female Entrepreneurs in Agribusiness: A Case Study of the Rice and Maize Subsectors in Cameroon," Sustainability, MDPI, vol. 13(5), pages 1-19, March.
    11. Husmann, Christine, 2015. "Transaction Costs on the Ethiopian Formal Seed Market and Innovations for Encouraging Private Sector Investments," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 54(1), pages 1-18, February.
    12. Gebremedhin, Berhanu & Jaleta, Moti, 2013. "Policy Imperatives of Commercial Transformation of Smallholders: Market Orientation Versus market Participation in Ethiopia," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160580, African Association of Agricultural Economists (AAAE).
    13. Simphiwe Innocentia Hlatshwayo & Temitope Oluwaseun Ojo & Albert Thembinkosi Modi & Tafadzwanashe Mabhaudhi & Rob Slotow & Mjabuliseni Simon Cloapas Ngidi, 2022. "The Determinants of Market Participation and Its Effect on Food Security of the Rural Smallholder Farmers in Limpopo and Mpumalanga Provinces, South Africa," Agriculture, MDPI, vol. 12(7), pages 1-16, July.
    14. Demeke, Leykun & Haji, Jemma, 2014. "Econometric analysis of factors affecting market participation of smallholder farming in Central Ethiopia," MPRA Paper 77024, University Library of Munich, Germany.
    15. Kabeto, Agete Jerena, 2014. "An Analysis Of Factors Influencing Participation Of Smallholder Farmers In Red Bean Market In Halaba Special District, Ethiopia," Research Theses 276425, Collaborative Masters Program in Agricultural and Applied Economics.
    16. Yao, B. & Shanoyan, A., 2018. "The Use of Mobile Money Application and Smallholder Farmer Market Participation: Evidence form Cote d Ivoire and Tanzania," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277259, International Association of Agricultural Economists.
    17. Eunice Adu Donkor & Elena Garnevska & Muhammad Imran Siddique & Emmanuel Donkor, 2021. "Determinants of Rice Farmer Participation in the Direct Marketing Channel in Ghana," Sustainability, MDPI, vol. 13(9), pages 1-14, April.
    18. Chamberlin, Jordan, 2013. "Infrastructure, services, and smallholder income growth: evidence from Kenyan panel data," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161269, African Association of Agricultural Economists (AAAE).
    19. Songsermsawas, Tisorn & Kafle, Kashi & Winters, Paul, 2021. "Decomposing the Impacts of an Agricultural Value Chain Investment by Gender and Ethnicity: The case of Nepal," 2021 Conference, August 17-31, 2021, Virtual 315047, International Association of Agricultural Economists.
    20. Mignouna, D.B. & Abdoulaye, T. & Alene, A. & Akinola, A.A. & Manyong, V.M., 2015. "Drivers of Market Participation Decisions among Small-scale Farmers in Yam Growing Areas of Nigeria and Ghana," 2015 Conference, August 9-14, 2015, Milan, Italy 230219, International Association of Agricultural Economists.

    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:iepeoa:200519. 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/iepbgyu.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.