Empirical assessment of onion supply chain constraints in Bangladesh: A pre-covid to covid situation

Farhana Arefeen Mila; Ashrafun Nahar; Md Ruhul Amin; Richard J Culas; Afruz Ahmed

doi:10.1016/j.jafr.2022.100418

Empirical assessment of onion supply chain constraints in Bangladesh: A pre-covid to covid situation

J Agric Food Res. 2022 Dec:10:100418. doi: 10.1016/j.jafr.2022.100418. Epub 2022 Oct 15.

Authors

Farhana Arefeen Mila¹, Ashrafun Nahar¹, Md Ruhul Amin¹, Richard J Culas², Afruz Ahmed³

Affiliations

¹ Department of Agribusiness, Faculty of Agricultural Economics and Rural Development, Bangabandhu Sheikh Mujibur Rahman Agricultural University, Gazipur, Bangladesh.
² School of Agricultural, Environmental and Veterinary Sciences, Charles Sturt University, Orange, NSW, 2800, Australia.
³ Department of Agricultural Economics, Faculty of Agricultural Economics and Rural Development, Bangabandhu Sheikh Mujibur Rahman Agricultural University, Gazipur, Bangladesh.

Abstract

In Bangladesh, Covid-19 has wrecked devastation on people's livelihoods and economies. It began with supply chain disruptions affecting a variety of agricultural products, particularly perishable ones. Onion, the most consumed species in Bangladesh and Asia is also fallen into that category. The goal of this study was to shed light on the current onion supply chain as well as the constraints faced by the actors in Bangladesh's major onion-producing area markets (i.e., Pabna, Rajshahi, and Chapainawabganj). The extent to which pre-existing constraints on market actors of onion were discovered and distinguished in pre-covid to covid conditions. The backward supply chain analysis revealed that the local market seller supplied the majority of necessary farm inputs (i.e., seed, seedlings, and fertilizer). Wholesalers, commission agents (aratdars), local wholesalers (beparies), and retailers were all involved in forward connecting. Producers received roughly 71% of the retail price (0.76/kg), followed by retailers (BDT 2.07/kg), wholesalers (BDT 1.22/kg), commission agents (aratdars) (BDT 0.85/kg), and independent wholesalers (beparies) (BDT 0.36/kg). Moreover, a constraint factor index and econometric analysis were utilized to determine the most critical constraints and their influencing factors. Obstacles to onion production and commercialization ranged from moderate (66%) to severe (33.5%), with a few being fairly severe (0.5%). The paucity of high-quality seed, the cost and difficulty of timely transportation, and the market's inaccessibility to government intervention were all significant drawbacks to increased onion output. The primary impediments to onion marketing were a lack of or inability to receive marketing expertise, frequent demand fluctuations, and an insufficient storage facility for other market intermediaries. The findings of the study can assist in establishing a dynamic policy framework that includes procedure for expanding market infrastructure, rehabilitating current onion market actors through adequate training, assuring information abundance, and rapidly addressing market mishaps for ensuring sustainability.

Keywords: Agricultural market constraints; Commercial supply chain; Comparative scenario; Covid-19; Spice marketing system.