Commercialization of Smallholder Farmers and Its Welfare Outcomes: Evidence from Durgapur Upazila of Rajshahi District, Bangladesh
Journal of World Economic Research
Volume 3, Issue 6, December 2014, Pages: 119-126
Received: Dec. 21, 2014; Accepted: Dec. 27, 2014; Published: Jan. 6, 2015
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Authors
Md. Ataul Gani Osmani, Department of Economics, University of Rajshahi, Rajshahi-6205, Bangladesh
Md. Khairul Islam, Department of Economics, University of Rajshahi, Rajshahi-6205, Bangladesh
Bikash Chandra Ghosh, Department of Economics, Pabna University of Science & Technology, Pabna-6600, Bangladesh
Md. Elias Hossain, Department of Economics, University of Rajshahi, Rajshahi-6205, Bangladesh
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Abstract
Agriculture is the mainstay of Bangladesh economy. It plays important role to the growth and development of the economy of the country. Most of the farmers of Bangladesh are marginal and small farmers. They consume most part of their produced commodities. The market participation rate of them with surplus production is very low. Therefore, the main objective of the present study is to estimate the level of commercialization of smallholder farmers. The study also examines the welfare outcomes of commercialization of these farmers. This study is mainly based on primary data that are collected from Durgapur Upazila of Rajshahi District of Bangladesh. The required data have been collected from 100 smallholder farmers in the study area. A multi-stage random sampling technique is applied to select the sample farmers. The present study uses household commercialization index to estimate the level of commercialization of smallholder farmers. It also applies one-way ANOVA analysis to examine the welfare outcomes among smallholder farmers working at different levels of commercialization. Firstly, calculation of Household Commercialization Index implies that the average percentage level of commercialization of smallholder farmers in the study area is 57%, which indicates the moderate level of commercialization. And findings from one-way ANOVA analysis indicate that farm households with high degree of commercialization enjoy better welfare outcomes such as consumption of more food and goods, and services. The commercialization of smallholder farmers contributes more to the gross domestic product and economic development of Bangladesh. Therefore, the government and non-government organizations should provide financial support such as input subsidy, credit facilities, training etc. to the smallholder farmers so that they can increase the agricultural productivity and can participate in the market with their surplus production.
Keywords
Agriculture, Smallholder Farmers, Market Participation, ANOVA Analysis, Economic Development
To cite this article
Md. Ataul Gani Osmani, Md. Khairul Islam, Bikash Chandra Ghosh, Md. Elias Hossain, Commercialization of Smallholder Farmers and Its Welfare Outcomes: Evidence from Durgapur Upazila of Rajshahi District, Bangladesh, Journal of World Economic Research. Vol. 3, No. 6, 2014, pp. 119-126. doi: 10.11648/j.jwer.20140306.16
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