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Marketing of orange: a value chain perspective in the selected areas of Sylhet

District in Bangladesh

Article in Progressive Agriculture · December 2016

DOI: 10.3329/pa.v27i3.30827

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Progressive Agriculture 27 (3): 327-338, 2016 ISSN: 1017 - 8139

Marketing of orange: a value chain perspective in the selected areas of Sylhet

District in Bangladesh
M Begum1, MR Ahmed1, T Noor2, MI Hossain2
1
Department of Agricultural Marketing and Business Management, Sylhet Agricultural University, Sylhet 3100,
Bangladesh, 2Department of Agribusiness and Marketing, Bangladesh Agricultural University,
Mymensingh 2202, Bangladesh

Abstract
Orange is one of the most import fruit crops that generate additional cash income for market actors. The study was
investigated the marketing system of orange , value addition, roles and functions of value chain actors with the help
of primary data collected from both farmers (forty) through simple random sampling and value chain actors (thirty)
through purposive sampling by using structured questionnaire and face to face interview technique. The gross return
and net return of farmers were estimated Tk. 2, 70,000 and Tk. 22084.77 per hectare respectively. Per quintal value
addition of orange of bepari, aratdar, wholesaler and retailer were estimated at Tk. 800, Tk. 340, Tk. 700 and Tk.
1000 respectively. The net marketing margin per quintal of orange of bepari, aratdar, wholesaler and retailer were
estimated at Tk. 293.59, Tk. 107.32, Tk. 356.46 and Tk. 700.8 respectively. Among the different actors, retailer
incurred highest (in percentage) value addition and net marketing margin. On the other hand, aratdar incurred
lowest marketing cost and marketing margin and bepari incurred highest (in percentage) marketing cost but adding
second highest value in compare to another.

Key words: Marketing system, value addition, orange, Sylhet district.

Progressive Agriculturists. All rights reserve *Corresponding Author: ismailho12@yahoo.co.in

Introduction
Agriculture is the backbone of the rural economy in where only Sylhet regions bear’s area under cultivation
Bangladesh. Rural economy is sharpen and regulated is 84.21 acres and production is 1005 tons (BBS,
by the rural masses and its development often relies on 2012). As of 2014-15, sweet oranges produced in
various economic activities they perform. Horticultural Bangladesh accounted for 40 thousand tons of total
farming is yet one of the major source of generating fruits production (BBS, 2014). So due to its high
adequate income. There are various kinds of production in the district, it is necessary to tap the
horticultural crops like fruits, vegetables, spices, nuts, potential of orange so that farmers can earn a high
tuber crops and medicinal & aromatic plants etc. return and cash from their high produce. It is important
to have an efficient marketing system, so that producer
The land and climate condition of Bangladesh with
gets appropriate returns for their produce and
abundant water and humid temperature is ideally
consumers get them at reasonable price.
congenial to the cultivation of Citrus fruits like orange.
The total area under orange cultivation in Bangladesh The production of orange being seasonal and localized
is about 2427.13 acres and production 1, 36,756 tons to favoured agro-climatic conditions coupled with the

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 Begum et al. (2016), Progressive Agriculture 27 (3): 327-338

perishability of the produce pose several problems on of 40 selected growers, 20 were from Sythet Sadar and
marketing front. Seasonal gluts, distress sale and 20 were from Jaintiapur upazila in Sylhet district
volatile behaviour of price are, therefore, common through simple random sampling technique and thirty
trend in all assembling markets during normal value chain actors such as 7 Beparies, 7 Aratdars, 8
production season. Then marketing and transportation wholesalers and 8 retailers were selected through
of fruit crops are other hurdles in the way of fruit purposive sampling technique. Data were collected
growers of rural areas who are also exploited by during the month of October-November, 2015 through
middlemen resulting in the low share of farmer in the primary sources though these month were the
consumer’s taka. Further, the continued adoption of harvesting season of orange. Secondary data also
unorganized marketing practices also lead to high collected from different published and unpublished
marketing costs, margins and price spread which all sources.
combine together to snatch away the economic
Analytical techniques
attraction which the crop holds and the keenness in the
producer farmers to invest in the improved technology Descriptive statistics were used for reaching the
and better inputs. Besides these factors the objectives of the study. Value chain mapping, and
development in rural areas is circumscribed by the simple statistical measures like sum, percentage,
specificities namely inaccessibility, marginality and average and ratios were used to explain the findings of
fatality which contribute in physical isolation distance the research. For estimating gross return, net return,
and high transportation cost. gross marketing margin, net marketing margin and
return on operating capital the following formula were
The overall objective of the study is to analyze and
used:
appraise the value addition of orange in various
marketing steps. The specific objectives of the study
Value addition at producer’s level: Value addition
are to identify the actors and their functions in the
(profit) at producer’s level was derived at by deducting
value chain of orange, estimate the cost and return of
all costs (variable and fixed costs) from gross return.
each value addition stage and identify the value added
The following equation was used to assess the value
to the product and estimate the percentage share of
addition/net profit of orange at producers’ level:
added value in terms of profit and cost for each market
π=PF.QF-(TVC+TFC)
actors
Where, π = Producer’s profit (Tk. /ha)
Methodology PF = Price of produce (Tk. /quintal)
QF = Quantity of produce (quintal/ha)
Selection of the sample and sampling technique
TVC = Total variable cost (Tk./ ha)
Sylhet district is one of the high yielding and widely TFC = Total fixed cost (Tk. /ha)
orange producing district of the country. The
Value addition at traders’ level: Value addition at
availability of orange growers and traders in Sylhet
traders’ level was calculated by deducting all costs
district were the main criteria for selecting as the study
(variable and fixed costs) from gross return. The
area for the present study. In the present study, the
following formula was used for calculating value
sample includes growers and different market
addition at traders’ level:
participants such as bepari, aratdar, wholesaler, and
GMM = Selling price-Purchase price
retailer. A list of orange growers of the selected areas
Profit (π) = Net marketing margin (NMM) = GMM-
was prepared through a preliminary survey. The
MC
sample size for orange grower was fixed at forty. Out
Where, NMM= Traders’ profit (Tk. /quintal)

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 Marketing of orange in Bangladesh

GMM = Gross marketing margin (Tk. /quintal) point. The main value chains actors involved in the
MC = Marketing cost (Tk. /quintal) orange marketing, their roles and inter relationships are
Value Addition (%) = (Sales price- Purchase discussed as follows:
price)/Purchase price × 100
The value chain actors perform the basic functions of
Marketing Efficiency the value chain. Typical actors of the orange value
chain in the study include farmers and different actors
To evaluate the marketing efficiency of different
such as Bepari, Aratdar, wholesaler and retailer. They
channels of different components following methods
are in common become owners of the product at certain
were used (Acharya and Agarwal, 1999).
stage in value chain of orange marketing.
i. Conventional method: Efficiency of any activity
From Figure 1, it is found that the orange in Sylhet
or process may be defined as the ratio of output to
district is moved through the following chains:
input. It is worked out as:
Channel І: Farmer→ Consumer
E= O/I × 100
Channel ІІ: Farmer→ Bepari → Consumer
Where, O stands for output i.e. value added measures
Channel ІІІ: Farmer→ Bepari→Retailer→ Consumer
in terms of difference in the consumers’ price and price
Channel ІV: Farmer→ Bepari→ Aratdar →
received by the farmer (Taka per unit),
Wholesaler→ Consumer
I for input (total marketing costs incurred)
Channel V: Farmer →Retailer→ Consumer
E is the index of marketing efficiency
A higher value of E denotes higher level of efficiency Channel VІ:Farmer→ Bepari→ Aratdar → Wholesaler
and vice versa. → Retailer→ Consumer

ii. Acharya’s method: Acharya has modified the The analysis reveals that marketing of orange in Sylhet
formula of estimating marketing efficiency, which district is moved from the hands of producers to the
is worked out as: hands of the consumers through six separate channels.
Pp In channel І, oranges are sold at primary market or at
ME (%) = × 100
(TMC + TMM) farmgate. This happens particularly in case of small
Where, Pp = Producer’s price growers who have small lots and prefer to sell at the
TMC = Total marketing cost earliest at orchard site in order and orange farmers sold
TMM = Total net marketing margin larger portion of their orange i.e. 80.71 % to the Bepari
ME = Marketing efficiency followed by 15 and 4.29 % to the retailers and
consumers. In channel ІІ, here the producers sold their
Result and Discussion
orange directly to Bepari and Bepari sold their orange
Actors involved in value chain to the Aratdar (70%), retailer (8.57%) and consumer
(8%) in consuming market. In the study area 79.75 %
Value addition is mainly concerned with the changes of
of orange was distributed through this chain (Channel
utilities. When product passes through distribution
ІV). In channel V, this chain contains three actors
channels, it creates place, time, and possession utilities.
levels i.e. farmer, retailer and consumer. In the study
For this reason this deals with identifying the actors
area 20.25 %of orange were distributed through this
involved in value chain and their functions of orange
channel. Channel VІ is the largest chain of distributing
marketing.
orange. The role of Bepari in this marketing channel is
It is clear that along with the farmer/producer, a to arrange transport and ensure that orange reaches the
number of actors participated in the marketing of particular market and to Aratdar or commission agent
orange from the production point to the consumer etc, where the grower wants to send his produce. Here

329
 Begum et al. (2016), Progressive Agriculture 27 (3): 327-338

wholesalers buys orange from Aratdar and sells to VІ). They all took a portion of margins at each stage of
retailer who in turn sells to ultimate consumers (Chain value addition activities.

FARMER (100%)

(I) 80.71%

4.29%
BEPARI

70%
(V) 15%
(II)
ARATDAR
8%

70% (III)

WHOLESALER

55% 8.57%

RETAILER

IV)
79.75%
20.25%
CONSUMER
(100%)
(VI)

Figure 1. Distribution channels of orange ofvalue chain actors in Sylhet district

Producer
as Bepari, Aratdar, wholesaler and retailer either at the
The producers were the farmers who after harvesting
markets.
the produce performed the role of a seller in marketing
orange. Orange producers were the main actor and Bepari
played an important role in the orange value chain. The Bepari were also non-licensed traders. The Bepari
They produced orange independently and sold them to were relatively medium traders and they handled
the local traders or urban traders. In the study area the relatively larger volume of orange than that done by
producers used to sell orange to the market actors such other traders. They were independently organized.
They had no fixed business premises. Most of the

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 Begum et al. (2016), Progressive Agriculture 27 (3): 327-338

Bepari had no permanent shop staff. Crate sale or purchased orange from the wholesaler at the district
purchase was very common practice for Bepari. There level. They bought the orange in small volume on the
is strong competition among the Bepari at entry to this basis of open bargaining and sometimes on the basis of
type of business is not rather easy. As a result, Bepari pre-fixed market price and sold directly to the ultimate
could not make high profit in their business. The consumers at the retail shops. The retailers were the
Bepari were professional traders who purchased orange professional traders who used to sell their purchased
from the farmers, Aratder and wholesaler at the local orange to consumers directly. Most of the retailers
market sold it to district wholesaler and local were independently organized having permanent shops
wholesaler. They themselves financed their business usually in the open market place and labor for
and accepted loan in rare case. performing retailing activities. There were some
retailers who had no permanent shop usually use open
Aratdar
market place for their sale. Most of the retailers had
The Aratdar were licensed traders. The Aratdar were been doing business for more than five years. In spite
relatively big traders and then handled relatively larger of being self-financed they borrowed money from
volume of orange than that done by the other traders. friends, relatives and other non-institutional sources at
They had fixed business premises. Most of the Aratdar the time of need.
were independently organized and self-financed.
Value chain actors’ functions of orange
They employed both labors and other staff on daily
wage and salary basis for performing various functions. Marketing system may be thought of as the connecting
They had some permanent and temporary staffs. The link between specialized producers and consumers
Aratdar only sold the oranges to distance market (Kohls, 2005). An efficient marketing system is
(Dhaka, Chittagong etc.) through wholesaler in essential for earning fair profit for the fish farmers and
different markets those they received from Bepari for traders. Marketing functions may be defined as major
this why they used to get a commission. The Aratdar specialized activities performed in accomplishing the
sometimes used to borrow money from different bank, marketing process of concentration, equalization and
other financial institute and other non- institution dispersion (Kohls, 2005). The functions that performed
(friends and relatives and other traders) for a short by the value chain actors are described in this chapter
period in rare cases. for achieving the research objectives. The marketing
functions are buying and selling, grading, storage,
Wholesaler
transportation, financing, risk bearing and market
The wholesalers were also non-licensed traders. They information which are discussed in details with respect
were relatively medium traders like Bepari and they to the value chain actors roles and responsibilities and
handled relatively larger volume of orange than that their obligation to perform these functions.
done by other traders. They were independently
Buying and selling
organized. They had no fixed business premises. Most
of the wholesaler had no permanent shop staff. Mainly The primary objectives of buying and selling are the
the wholesaler sold oranges to the retailer at a relative negotiation in favorable terms and exchange. Both
volume. buyers and sellers constantly observe the fluctuation of
prices of goods and commodities. Buying generally
Retailer
includes the selection of goods, the determination of
The retailers were last link in the marketing of orange. quality and quantity and the selection of sources of
They were the specialized sellers who were directly supply. The activities involved in the transfer of goods
connected with the consumers. Sometimes, they are completed through buying and selling functions.

331
 Marketing of orange in Bangladesh

Aratdar do the functions of negotiation between buyers business premises on receipt of commission. They do
and sellers of orange and help them at their own not take the ownership of the orange.

Table 1. Percentage of orange transacted by value chain actors

Value chain Purchase from (%) Sold to (%)
actors Farmers Farmers Whole- Retailers Whol- Wholesalers Retailers Retailers Consumers
via salers salers via via
Aratdar Aratdar Aratdar
Bepari 80.71 19.29 - - 76.43 15 8.57 - -
Aratdar
Aratdar negotiate between buyers and sellers of orange and help them at their own business
premises on receipt of Aratdari commission.
Whole- 17 83 - - - - - 79.75 20.25
saler
Retailer 52.75 47.25 - - - - - - 100
Consumer - - - 100 - - - - -
Source: Field survey (2015)

The study shows that mainly Bepari sell 76.43% of marketing channel. Grading facilitates sale since
their orange to wholesaler, 15% wholesaler through different sizes of orange have different prices. In this
Aratdar, and remaining 8.57% to retailer directly. study, all the actors grading their oranges on the basis
Wholesaler sells 79.75% of their oranges to retailer via of size.
Aratdar and 20.25 % to consumers directly. Retailers
Storage
sell the entire orange to ultimate consumers. Bepari of
oranges purchases 80.71% from farmers and 19.29% The storage facilities help buyers and sellers to reduce
directly from farmers through Aratdar. Consumer the wide fluctuation of prices between peak and lean
purchases 100% of oranges from the retailers in the seasons. The storage function is primarily concerned
study area (Table 1). with making goods available at the desired time and
enables traders to receive better prices for their
Grading
products. Because of high perish ability; orange
Grading is the basic function of sales transactions and requires specialized storage facilities matching the
is defined as the classification of products according to seasonal demand. Orange is transported from one place
some standards or measures (Kohls and Uhl, 2005; p. to another using basket, crate and wooden box.
314). Grading is the sorting of produce into different
Transportation
market quality which facilitates exchange by
simplifying buying and selling as it makes the sale by Transportation is a basic function of making goods
showing sample and description possible. It also available at proper place and it creates place utility.
simplifies the concentration process and makes easier Perishable goods must be moved as early as possible
and less costly the movement of goods through the from the producing center to consumer.

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 Begum et al. (2016), Progressive Agriculture 27 (3): 327-338

Table 2. Modes of transportation used by value chain actors for movement of orange

Value chain actors Modes of transportation (%)

Rickshaw Van Truck Pickup Bus
Farmer 75 25 - - -
Wholesaler - - 55 45 -
Retailer 85 - - - 15
Source: Field Survey (2015)
one actor to another. In this study, farmers collect 80%
That is why transportation is essential for highly information from the market. While Bepari collects
perishable commodities like orange. Adequate and 70%, wholesaler 85% and retailer collects
efficient transportation is a cornerstone for the modern 75%information from the market. Aratdar collects
marketing system (Kohls and Uhl, 2005, p.319). In the maximum information through telephone/ mobile
study areas, the orange farmers and intermediaries use comparative to other actors those are involved in
various modes of transports such as head load, orange marketing (Table 3).
rickshaw, van, truck, bus, pickup, head load etc. to
Packaging
transfer product from the producing areas to the
consumption center. Table 2 shows different modes of Packaging is essential for proper transportation of
transport used by the different actors to transport orange. Packaging may be defined as the general group
orange from one place to another. of activities in product planning which involves
designing and producing the container or wrapper for a
Market Information
product. ‘Basket’ made of bamboo; plastic and wooden
Market information is a facilitative function required are used by farmers, Bepari, wholesaler and retailers of
for efficiently operating marketing system. In the study orange. Wooden baskets are usually used when orange
area, visiting the markets and use of telephone/mobile is transported in production places to distance places
phones are the most common sources of collecting like Dhaka, Chittagong, Mymensingh etc. Table shows
market information for all value chain actors. Table 3 the packing system in the study area. Each box
shows the sources of market information flows from contains 10-12 kg of orange (Table 4).

Table 3. Sources of market information of orange farmers and different actors

Sources of Market participants (%)

information Farmer Bepari Aratdar Wholesaler Retailer
From the market 80 70 65 85 75
Telephone/mobile 20 30 35 15 25

Source: Field survey (2015)

in varying degree. Price depends on quality, size,
Pricing
weight, market structure, supply and demand, and taste.
In the study areas, all intermediaries are involved in Table 5 shows that around 70 % of the farmers sell
buying and selling of orange. Farmer, wholesalers and their orange through market price. Ninety percent of
retailers practice open bargaining, auction and going the Aratdar and 65 % of the retailer sold their orange
market prices method for fixing price of their products

333
 Marketing of orange in Bangladesh

through market price and Bepari 100 % of their orange different stages of value chain. The production and
sold through auction (Table 5). marketing costs per quintal are shown in the following
Table 6, Table 7, and Table 8. In order to estimate
Value Addition of orange by producer/farmer
gross cost per quintal all the resource uses in orange
Value Addition is mainly interpreted as the difference cultivation have been recaptured together. In the study
between the total expenses involved in making or area, the total costs of orange were estimated at Tk.
buying of a commodity and the total revenue earned 234686.13per hectare. In the study area per hectare
from its sales. Value Addition activities are mainly summation of the costs of variable inputs made total
concerned with the changes of utilities. To determine variable costs, which was Tk. 135891.55 of orange and
the addition on orange produced by the producer, the fixed cost of orange cultivation, includes land use cost
cost and return was estimated in terms of per hectare and interest on operating capital. Summation of the
and per quintal. In orange cultivation, cost of inputs costs of fixed inputs made total fixed costs, which was
like human labor, land preparation cost, seed or tree Tk. 98794.58 of orange. Total marketing cost of
planting cost, fertilizer or manure cost, insecticide and farmers, was worked out to be Tk.293.98 per quintal.
pesticide cost, and also fixed cost like land use cost Average sales price of orange received by farmers were
were required. Marketing cost also estimated at Tk.6000 per quintal.
Table 4. Packaging system of orange marketing

Packaging Using materials Capacity Used by

practices

Basket Bamboo, Plastic and 10-12kg Farmer, Bepari, Aratdar, Wholesaler and
Wooden Retailer
Source: Field survey (2015)

Table 5. Pricing practices orange by value chain actors

Pricing methods Value chain actors (%)

Farmer Bepari Aratdar Wholesaler Retailer
Open bargaining 20 - - 70 25
Auction - 100 - - 10
Market prices 70 - 90 30 65
Prefixed prices 10 - 10 - -

Source: Field survey (2015)

The average yield of orange per hectare was estimated Gross margin was obtained by deducting total variable
at 45 quintal and the average gross return from orange cost from gross return. In the present study, gross
production was calculated by multiplying the total margin was estimated Tk. 134108.45 per hectare
amounts of produce by its prevailing market price (Table 9). Net return is very useful tool to analyze or
which was Tk. 6000 per quintal. The total gross return compute performance of enterprises. Per hectare net
was estimated Tk. 2, 70,000 per hectare (Table 9). return is calculated by subtracting gross cost from
Gross margin is the gross return over variable cost.

334
 Begum et al. (2016), Progressive Agriculture 27 (3): 327-338

gross return. In this study, net return was calculated at There are different types of expenses such as loading
Tk. 22084.77 per hectare (Table 9). and unloading, transportation, basket, personal
expenses, wastage, telephone charge, aratdar’s
Value Addition and marketing costs of orange by
commission, market toll, rent. in this section,
other value chain actors
marketing cost incurred during buying and selling by
Marketing cost of orange include various expenses bepari, aratdar, wholesaler and retailer are discussed.
incurred by different functionaries for physical
movement of orange through the marketing channel.

Table 6. Average production cost of orange per hectare

Indicattors Cost Items Amount Price per Cost (Tk./ha/year.)

unit
Land Preparation 30(no.) 414.98 12449.4
(Tk.)
Seed/Tree planting 550 (pieces) 120 (Tk.) 66000
Fertilizers
I. TSP 348.48 kg 22Tk./kg 7666.56
II. MOP 336.36 kg 15Tk./kg 5045.4
III. CaO 348.48 kg 15Tk./kg 7666.56
Variable costs
Cow dung and manure 4242.42 kg 1.5Tk./kg 6363.63
Pesticide and 10200
Insecticide
Irrigation 10000
Human labor 30(no.) 350(Tk.) 10500
Total 135891.55
Land use cost 92000
Interest on operating 6794.58
Fixed costs
capital
Total 98794.58
Total production cost 234686.13
Source: Field Survey (2015)

Table 7. Average production cost of orange per hectare and per quintal

Items Tk. per hectare Tk. per quintal

Total production cost 234686.13 5215.25
Variable cost 135891.55 3019.81
Fixed costs 98794.58 2195.44
Sales price - 6000
Source: Field Survey (2015)
between the producers and the consumers. It appears
The total cost of marketing of orange included all costs
from Table 10 that the total cost of marketing was
incurred by different value chain actors operated
Tk.1381.83 per quintal of orange for all actors. The

335
 Marketing of orange in Bangladesh

highest amount of marketing cost was borne by Bepari On the other hand, aratdar incurred lowest marketing
followed by retailers and wholesalers. Among the cost and marketing margin and bepari incurred highest
different actors, retailer incurred highest (in (in percentage) marketing cost but adding second
percentage) value addition and net marketing margin. highest value in compare to another.

Table 8. Average marketing cost of orange per hectare and per quintal

Cost Items Cost (Tk./ha) Cost (Tk./quintal)

Loading and unloading 446.4 9.92
Marketing costs Transportation 3903.75 86.75
Grading 1230.3 27.34
Sorting 1316.25 29.25
Basket 873 19.4
Personal expenses 2534.4 56.32
Others 1732.5 38.5
Wastage 652.5 14.5
Market toll 540 12.00
Total 13229.1 293.98
Source: Field Survey (2015)

Table 9. Gross margin and net return of orange farmer

Particulars Tk. per hectare Tk. per quintal

A. Gross return 270000 6000
B. Variable cost 135891.55 3019.81
C. Total cost (Total production cost + Total 247915.23 5509.28
marketing cost)
D. Gross margin (A-B) 134108.45 2980.19
E. Net return (A-C) 22084.77 490.77
Source: Field Survey (2015)

Value Addition of Orange farmers/producers, Bepari, Aratdar, wholesalers and

retailers and finally estimation of value addition at
Generally this section is concerned with the assessment
different levels.
of value addition of oranges by value chain actors such
as farmers/producers, Aratdar, wholesalers and The percentages of total value addition cost and total
retailers. Value addition is mainly interpreted as the net profit by different actors for orange are shown in
difference between total expenses involved in making Table 12. The major cost is borne by wholesalers
to buy of a product and total revenue accruing from its (30.22 % of total cost) and major net profit is earned by
sales. Value addition activities are mainly concerned retailers (48.06 % of total net profit) (Table 12).
with the change of utilities. For these reasons this
section goes through the cost and return at different
level that are incurred and obtained by

336
 Begum et al. (2016), Progressive Agriculture 27 (3): 327-338

Table 10. Total marketing cost incurred of different actors

(Tk. /quintal)
Cost items Categories of different actors All actors
Bepari Aratdar Wholesaler Retailer
Loading and unloading 7.67 0.00 7 0.00 3.67
Transportation 68.75 0.00 80.5 56.43 51.42
Basket 18.43 0.00 17.14 14.71 12.57
Grading 0.00 0.00 11.4 15.33 6.68
Wage and salaries 0.00 65.14 0.00 0.00 20.54
Shop rent 0.00 115.14 154.93 143.75 114.46
Electricity bill 0.00 11.13 31.5 33.38 19.08
Personal expenses 14.57 11.98 25.5 19.5 17.89
Wastage 10.2 0.00 9 9.6 7.2
Telephone charge 8.79 7.29 6.57 6.5 7.29
Aratder’s commission 340 0.00 0.00 0.00 85
Market toll 38 22 0.00 0.00 15
Total 506.41 232.68 343.54 299.2 360.8
Source: Field Survey (2015)

Table 11. Value addition, marketing cost and net marketing margin of different value chain actors of orange in Tk.
per quintal (Tk. per quintal)

Actors Purchase Sales Price Gross marketing margin Marketing cost Net marketing
Price or Value addition margin

Bepari 6000 6800 800 506.41 293.59

Aratdar - - 340 232.68 107.32
Wholesaler 6800 7500 700 343.54 356.46
Retailer 7500 8500 1000 299.2 700.8

Table 12. Percentage distribution of value addition cost and profit by different value chain actors of orange

Actors Percentage of total value addition cost Percentage of total profit

Farmer 17.54 -
Bepari 30.22 20.13
Aratdar 13.87 7.36
Wholesaler 20.49 24.45
Retailer 17.85 48.06

Note: Percentages of total value addition cost/net profit = Marketingcost/ Net marketingmargin
100
Total marektingcost/ Total net marektingmargin

337
 Marketing of orange in Bangladesh

Conclusion The study recommends for appropriate policy

intervention for financing producers so that they can
The orange is one of the common and important citrus
manage to tackle the vicious chain of non-institutional
fruit because of its high nutritional values. Value chain
money lenders and can secure more profit. On the basis
analysis of orange plays a decisive role in determining
of the findings a number of recommendations have
the level of value addition and net marketing margin.
been put forward. The operation of present value chain
Large numbers of people are involved in production
analysis of orange in Bangladesh warrants a
and marketing of orange and different number of actors
restructuring. It should be carried on in accordance
like Bepari, Aratdar, wholesaler and retailer are
with the modern marketing concepts in order to be
involved in the value chain of orange marketing
commercially profitable to the growers, besides being
system. They played an important role in moving
useful to the consumers. This calls for immediate plan
orange to the consumers but at cost sharper the present
of action for putting the value chain analysis on sound
study investigate different value chain in which the
footing.
actors acted as intermediaries with their costs and value
addition. The production and marketing of orange in
References
Sylhet is highly remunerative. The investment in
orange cultivation is profitable and net return from Acharya SS, Agarwal NL (2004). Agricultural
orange cultivation can further be increased if creating Marketing in India.New Delhi, Oxford and IBN
efficient marketing environment. This is mainly Publishing Co. Pvt.Ltd.
attributed to close proxy, good communication Bangladesh Bureau of Statistics, (2011).Statistical Year
facilities especially development of cell phone Book of Bangladesh, Ministry of Planning,
technology and good infrastructure availabilities Government of the People’s Republic of
among the market centers in Bangladesh. In this study Bangladesh, Dhaka.
the profit of retailer was higher than that of other Bangladesh Bureau of Statistics, (2012).Statistical Year
intermediaries. To make the business more profitable, Book of Bangladesh, Ministry of Planning,
efficient marketing system should be developed by Government of the People’s Republic of
reducing marketing cost and increasing marketing Bangladesh, Dhaka.
services. Bangladesh Bureau of Statistics, (2014).Statistical Year
Book of Bangladesh, Ministry of Planning,
The analysis reveals that marketing of orange in Sylhet
Government of the People’s Republic of
district is moved from the hands of producers to the
Bangladesh, Dhaka.
hands of the consumers through six separate channels.
Khols RL, JN Uhl (2005). Marketing of Agricultural
In channel І, oranges are sold at primary market or at
Products, 9th ed. Macmillan, New York.
farmgate. This happens particularly in case of small
http:// www. orange (fruit) - wikipedia, the free
growers who have small lots and prefer to sell at the
encyclopedia./E:/orange/html.
earliest at orchard site in order and orange farmers sold
http://en.wikipedia.org/wiki/value_chain_management
larger portion of their orange i.e. 80.71 % to the Bepari
followed by 15 and 4.29 % to the retailers and
consumers.

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