High input-intensive Boro rice cultivation needs substantial agricultural credit for the resource-poor Bangladeshi farmers. An investigation was conducted at Fulbaria upazila of Mymensingh district to assess loan attainment cost from Bangladesh Krishi Bank (BKB) and its utilization pattern; evaluate the effects of credit on Boro cultivation, and identify the major drivers of the agricultural credit programme. For the study, 140 farmers were divided into two groups: those who took a loan from BKB and those who did not. Results revealed that the borrowers had to pay Tk 10.23 for getting a hundred taka loan from BKB most of which was an unofficial cost. More than half of the obtained loan was used for Boro cultivation whereas 21% was used for family consumption and the rest (25%) was used for other purposes such as reimbursement of the previous loan from formal and informal sources, wedding and other income-generating activities including petty business. BKB credit borrowers obtained more benefits through Boro cultivation than non-borrowers. The major strengths of the BKB’s agricultural credit programme were well-established infrastructure, experienced manpower, country-wide network, and lower interest rate. Whereas complex and lengthy institutional procedures, the inevitability of collateral and poor institutional capacity were being revealed as the weaknesses of the programme. Prevalence of brokers or corrupt officials and political influence were identified as the major constraints for the loan acquirement. More advanced research is recommended, with an emphasis on agricultural credit programmes, to ensure their effectiveness. Bangladesh Rice J. 24 (1): 85-95, 2020
Using cross-sectional data obtained through carrying out a sample survey conducted during 2018, we examined the perception of farmers and millers about the paddy and rice procurement system and its feasibility. A probit model was employed to ascertain the factors influencing the likelihood of participating in the procurement system by farmers from two districts of Bangladesh. The results showed that the government procurement system has significant impacts on both the participant farmers and millers. The farmers and millers' net profit was TK 4,205 and TK 3,930 by selling a ton of paddy and cleaned rice, respectively, to the procurement center rather than in the local market. The probit regression analysis revealed nine different factors that significantly influenced farmers' participation in the paddy procurement programme. Results further implied that educated farmers had procurement cards with sufficient system knowledge, residing near the hub with improved road access, and association with political parties get preference in participating in the programme. The findings also indicate that lucrative prices, programme scheduling and good conduct of procurement employees inspire farmers to participate in the programme. The government procurement programme has several drawbacks such as anomalies in selecting farmers, taking extra paddy by the employees, corruption, unsuitable payment system, and procurement capacity. Therefore, the government would be vigilant to ensure that the procurement system will provide farmers with price support. A well-functioning procurement system is crucial for guaranteeing the country's food security by ensuring a fair price for the producers. Finally, the study proposed some policy guidelines based on the findings to establish a sound paddy and/or rice procurement system in Bangladesh. Bangladesh Rice J. 24 (1): 31-46, 2020
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