Regional Markets

Regional Markets for Local Development
Infrastructure and governance
As discussed in greater detail previously in the description of the FoSHoL project, the
actions were primarily focused on providing the physical and institutional infrastructure
to sustainably improve livelihoods in the districts. The government institution BRRI
provided breeder seeds and trainings to farmer groups for seed production. Through this
network, the existing government infrastructure facilities were engaged for the benefit
of communities. FoSHoL also constructed a seed processing centre and helped set up
the FoSHoL Bazaar, a shop stall at the local market. These are important infrastructural
improvements, which are owned by the communities themselves.
The aforementioned development of women’s and men’s farmers organisations is the
most important institutional development in the community. It improved the production
and marketing potential of the community as well as enhanced farmers’ self-confidence
in their unity, coordination and cooperation.
Producer and consumer prices
The shift from cultivating paddy to growing seeds resulted in a significant rise in
income for the farmers. The seed growers who cultivate the seeds sell their crop for seed
processing at 19 Taka/kg compared to the usual market price of 15 Taka/kg. When
producing the usual paddy, farmers used to earn only 5,600 Taka per acre. However
through seed production they earn 25,000 Taka per acre, which is a 190% increase in
income for the seed growers (see Table 3.5).
Table 3.5 Comparison of paddy and seed cultivation per acre
Items
Production
cost (Taka)
Yield
(kg)
Price
(Taka/kg)
Total income
(Taka)
Profit
(Taka)
Paddy 25,000 2,160 15 32,400 7,400
Seed 30,000 2,280 19 43,320 13,320
% increase
in profit
190
The processing group of farmers produces good quality seeds, while the traders group
sells the seeds to farmers at around 50 Taka/kg. This price is a bargain, compared to what
is offered by the other seed sellers in the market (around 85 Taka/kg). Poor farmers who
use FoSHoL seeds not only save 35 Taka on each kilogram of rice seed, but also benefit
from the high germination rates of these seeds (95%). FoSHoL seed is cheaper because
no excessive commercial profit is being made within this value chain. The following table
shows that the cost of producing and marketing each kilogram of seed is 35 Taka/kg.
Hence, at a market price of 50 Taka/kg, the grower and processor farmers groups make a
reasonable profit, which is distributed back to their members.
98