Rural Market System in Bangladesh

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LFE-SPRING 2011-FIVDB CHAPTER 7: RURAL MARKET ANALYSIS

TANZINA AHMED CHOUDHURY (0821156)
GROUP-07

2|Chapter 7- Rural Market Analysis

1.0 INTRODUCTION
This paper has been written as a part of the Group Report on Spring Live-in-Field Experience, 2011 in FIVDB Sylhet. For practical understanding of the rural marketing system, we were assigned to study the rural market at Chiknagul as a sample. We visited Chiknagul in the evening on Thursday, the 23rd December, 2010, which was a weekly ―Haat-day‖ as well. As this paper describes the Rural Marketing System prevailing in Bangladesh, the views and findings presented here are derived from general information, as well as from consultations with persons conversant on rural market activities and certainly, from the visit of our own.

1.1 OBJECTIVE OF THE STUDY
Our main objectives of this part of the study are-

1. To learn what types of commodities are popularly traded in rural markets. 2. To learn about the supply chains prevailing in rural markets. 3. To learn how value is added in commodities sold in rural markets. 4. To learn about the lives of rural market participants.

1.2 METHODOLOGY
To get an on-location idea on rural markets, we visited the Chiknagul Bazar on a ―Haat- day‖. We talked to the traders as well as the shoppers at random and for this we used unstructured questions following the thought that direct questions would create discomfort for the respondents and we might not get the actual answers. As our study on rural markets mostly demanded qualitative data, so we did not go for any numeric statistical survey. Also, we followed the observation method of research to see how much time shoppers are spending in a particular shop, how much time traders are taking to finish a whole transaction, the volume of people buying fake products instead of buying the original ones due to cheap costs as well as the volume of sellers selling those fake products, etc.

3|Chapter 7- Rural Market Analysis

1.3 LIMITATIONS OF THE STUDY
 Time given to visit the market was too short.  As it was a ―Haat Day‖, traders were so busy that we had difficult times to make them spare time to have talks with us.

 Some people were literally rude though we had not approached them even.  There was a woman round the bend who kept loitering unnecessarily around us making our visit even more hurdled.

2.0 REVIEWING THE RELATED ISSUES
2.1 RURAL POPULATION
The rural population in Bangladesh was reported at 116,576,093 in 2008 (compared to 61,063,694 in 1968). This population figure of 2008 constitutes 72.86% of the total population (compared to 92.96% in 1968) who live in the under-developed rural areas.1

2.2 RURAL ECONOMY
Bangladesh is considered as a developing economy which has recorded GDP growth above 5% during the past few years. Microcredit has been a major driver of economic development in rural Bangladesh and 35,562,000 or three-fifths of the economically active population are employed in the agriculture sector in 2008 (compared to 27,589,000 in 1980).2 The steady incline in the rural-population-chart with simultaneous decline in rural-percentage gives a clear picture of urbanization. Over-population should no more be considered as the biggest obstacle to sustainable development in Bangladesh. The migrant workers, a big majority of which are from the rural, have remitted US$8,994,997,000.- in 2008 (compared to US$ 338,666,700.- in 1980). For the foreign remittance, rural-women employment in readymade garments industry and growing agricultural employment the rural economy is in transition.

2.3 THE GLOBALIZATION EFFECT
By the effect of globalization, the rural scenario in Bangladesh has dramatically changed over the years. Powerful external economic forces, expansion of physical infrastructure – especially 1

www.tradingeconomics.com/bangladesh- accessed on 22 February, 2011 Bangladesh Bureau of Statistics, 2008 Report on Paper

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