Study on the Local and International Market Demand for Fine Grained and Aromatic Rice Varieties in Bangladesh
Name of Client:
Duration of assignment (months):
Start date (month/year):
Completion date (month/year):
August 7, 2016
October 10, 2016
Location within country:
Total No. of staff-months of the assignment:
Narrative description of Project:
IRRI, a nonprofit independent research and training organization is implementing Feed the Future Bangladesh Rice Value Chain (RVC) Project, that supports the private sector to improve the efficiency of the rice value chain. This is a 15 month pilot project funded by USAID that aims to reduce poverty by increasing the income of rice. The project focuses on two primary beneficiaries: farmers and processors. The project is facilitating improved access of quality seeds, advisory services, financial services and agricultural machinery services for farmers to increase the production of rice and crops grown in rice based cropping systems. Millers and processors are being facilitated to access improved processing equipment and novel markets. The project is also working to establish a contract grower scheme so that farmers have a direct access to national markets. Under this project, IRRI commissioned Innovision Consulting to undertake a study to determine the size and market for Fine Grain and Aromatic Rice varieties both for the Local and International markets.
The study was set in the following context: (i) increasing demand for high value rice varieties with the growing economy in Bangladesh, (ii) the growth in demand has led to new market entrants, importers and distributors of imported aromatic rice varieties and also distributors of locally produced aromatic rice varieties and iii) the growth in demand has led to increasing number of farmers growing the varieties for local and international markets. The objective of the study was to determine the size of both national and international market for fine grain and aromatic rice varieties. The specific objectives included to estimate the number of farmers growing these rice types and amount marketed and to estimate the current and potential size of the local and international market for these rice types.
Description of actual services provided by your staff within the assignment:
Innovision conducted the study following four stages with the inception period, literature review, primary investigation and consumer survey. The investigation used both primary and secondary approaches. The primary investigation was conducted in two stages. The first stage involved interviews with different stakeholders of the aromatic rice market. The respondents included 50 farmers, 9 traders, 15 rice millers, 4 seed suppliers, 15 institutional buyers, and 29 key informants (Exporter, importers, wholesalers, retailers, government officials). The study was conducted in the Northern and Southern regions of Bangladesh covering Bhola, Barisal, Jessore, Khulna, Patuakhali, Naogaon, Dinajpur and Rangpur. The northern districts were selected as the production of different varieties of aromatic and fine grained rice is highest in these districts and the Southern districts were covered as the project is targeting these areas. The second stage involved conducting the consumer survey to identify the consumer preference of different aromatic rice varieties and to assess the consumption of these rice varieties. 180 respondents were interviewed in Dhaka and Chittagong and they were selected according to their socio economic class.
Innovision prepared a report after the assessment providing the key findings and analysis with some significant recommendations. The study reported the status of Aromatic and fine grained rice in Bangladesh including production performance, cultivation area for the selected varieties. The report also provided the estimation of number of farmers engaged in aromatic in aromatic rice production, the current market size and the future demand. A consumer profile describing the behavioral pattern of aromatic and fine grain rice consumers was presented. The key findings of the study were the dominance of large rice millers, inadequate technical knowledge at the miller level, untapped export market and the increasing entry of large agro processors. Innovision recommended several interventions following the findings that involved: improved linkage among agro processors and farmers, fostering the export market, strengthen the supply of quality seed, improved brand awareness of BRRI dhan 50 (Banglamati) and regulating rice imports.