Agricultural marketing is an important factor in determining the rural economy of a country. But the conditions of marketing agricultural produce in Bangladesh are far from satisfactory. The traditional marketing system, we have, has many defects particularly in respect of handling, grading, packing, storing, etc, of agricultural commodities.
The agricultural producers suffer from a number of disabilities which reduce their bargaining power ; long chain of intermediaries operating between the primary producer and the ultimate consumer appropriate a major share of the consumer’s price ; undeveloped means of communication, defective storage system and unregulated sales practices deprive the producer of his due share in the consumer’s price.
The marketing system of Bangladesh is largely traditional and less productive. Historically little attempt has been made to organise and improve the marketing system of the country. The Royal Commission on Agriculture appointed in 1928, drew pointed attention to the disabilities under which the cultivator was labouring for marketing of his produce and the exploitation to which he was exposed and recommended for setting up of a Government machinery to ensure satisfactory arrangement for marketing of farm produce. In pursuance of recommendations of the Commission the agricultural Marketing Organisation came into being in 1935, both in the centre as well as in the provinces. It was agreed that the marketing of agricultural produce was largely a matter of Provincial concern but it was considered necessary to study in detail the country wide aspects of the marketing problems.
The Reasons why Central Marketing Department was created:
The Central Marketing Department was, therefore, created for:
(a) marketing survey of agricultural commodities,
(b) development work, and
(c) formulation of grade standards and specifications of quality for agricultural commodities and introduction of grading schemes.
The marketing surveys conducted by the Agricultural Marketing Departments reveal that grower’s share in the consumer’s taka varies from 45 per cent to 65 per cent in case of major farm produce. The high cost of marketing is due essentially to defective marketing arrangements and the long chain of intermediaries who are thriving at the cost of the producers.