Bangladesh Water Development Embassy of the Kingdom of the Department of Agricultural

Board Netherlands Extension

(BWDB) (EKN) Dhaka, Bangladesh (DAE)

Technical Report 19

Mustard Value Chain Analysis Report

February 2017
Technical Report 19

Mustard Value Chain Analysis Report

February 2017

Blue Gold Program

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Blue Gold Program

Issue and revision record

Revision Date Originator Checker Approver Description

1 15/01/2017 Md Shaifullah ASM Shahidul Haque First draft

2 22/02/2017 Md Shaifullah Karel T’Jonck Guy Jones First issue

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Blue Gold Program

Content

Chapter Title Page

List of Abbreviations iii
1. Introduction 1
2. Report preparation methodology 4
3. Regional crop production context and mustard production status 5
4. Mustard value chain and market system 7
4.1 Overview of mustard value chain _______________________________________________ 7
4.2 Value Chain Map ____________________________________________________________ 0
4.3 End Market and Market Level analysis ___________________________________________ 1
4.4 Production and Producers _____________________________________________________ 2
4.5 Cultivation Practices of Mustard ________________________________________________ 3
4.6 Margins and Profit ___________________________________________________________ 5
4.7 Backward linkages – Input market actors’ function _________________________________ 7
4.8 Forward linkages – Output market actor’s functions ________________________________ 8
4.9 Support functions and actors__________________________________________________ 12
4.10 Business Enabling Environment (BEE) and its Actors________________________________ 14
5. Findings, problems and interventions 16
5.1 Summary of Key Findings, Constraints faced and Preliminary Intervention Options _______ 18

Annexes
Annex 1. Annexures 1
1.1 List of consultancy service providers (Research and Extension) ________________________ 1
1.2 List of Seed Dealers (polder level) _______________________________________________ 1
1.3 List of Fertilizer and pesticide Dealers (polder level)_________________________________ 1
1.4 List of mustard buyers (Farias/Beparies) __________________________________________ 1
1.5 List of mustard Arotders ______________________________________________________ 2
1.1 List of mustard crushing Mills __________________________________________________ 2

Tables
Table 1 ............................................................................................................................................................ 5
Table 2 ............................................................................................................................................................ 6
Table 3 ............................................................................................................................................................ 6
Table 4 ............................................................................................................................................................ 8
Table 5 ............................................................................................................................................................ 9

Mustard VCA Report (i) February 2017

Blue Gold Program

Table 6 .......................................................................................................................................................... 10
Table 7 .......................................................................................................................................................... 11
Table 8 .......................................................................................................................................................... 12
Table 9 .......................................................................................................................................................... 16

Figures
Figure 1: Mustard Production trend in Bangladesh as of BBS-2015 .............................................................. 1
Figure 2: Information collection from the Farmers ..................................................................................... 2
Figure 3: DAE UAO and TL of BGP, talk with mustard .................................................................................... 3
Figure 4: UAO of Patuakhali Sadar visited the Mustard field ......................................................................... 4
Figure 5: UAO Amtali visited the mustard field in his area ............................................................................ 4
Figure 6: Mustard production scenario in Barisal division ............................................................................. 5
Figure 7: Information collection from output actors ..................................................................................... 7
Figure 8: Nationally processed mustard oil in the market ............................................................................. 1
Figure 9: Fig: Mustard field at Polder 43/2F ................................................................................................... 3
Figure 10: Local level mustard crushing Mill at Patuakhali ............................................................................ 4
Figure 11 Mustard seeds sold by Seed dealers .............................................................................................. 7
Figure 12: Supply Chain for Mustard in Patuakhali ........................................................................................ 8
Figure 13: Countrywide monthly prices of mustard seeds and oil cake for 2014 & 2015 ........................... 10
Figure 14 Maturing Mustard Field end of January 2017 .............................................................................. 17
Figure 15: Mustard crop condition 1 February 2017 ................................................................................... 19

Mustard VCA Report (ii) February 2017

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List of Abbreviations

AIS Agricultural Information Systems

BADC Bangladesh Agricultural Development Corporation
BARI Bangladesh Agricultural Research Institute
BBS Bangladesh Bureau of Statistics
BCIC Bangladesh Chemical Industries Corporation
BGP Blue Gold Program
BINA Bangladesh Institute of Nuclear Agriculture
BRRI Bangladesh Rice Research Institute
DAE Department of Agricultural Extension
DAM Department of Agricultural Marketing
FAO Food and Agriculture Organization
FGD Focus Group Discussion
HH Household
HYV High Yielding Variety
ICT Information Communication Technology
Kg Kilogram
LLP Low Lift Pump
MOA Ministry of Agriculture
MOP Murat of Potash
MT Metric Ton
NGO Non-Government Organization
NSB National Seed Board
OFRD On-Farm Research Division
ORC Oil Research Centre
PSO Principal Scientific Officer
PTOS Power Tiller Operated Seeder
SCA Seed Certification Agency
TA Technical Assistance
T-Aman Transplanted Aman Rice
TSP Triple Supper Phosphate
UAO Upazila Agriculture Officer
UP Union Parishad (Local Government)
WMG Water Management Group

Mustard VCA Report (iii) February 2017

Blue Gold Program

1. Introduction

Blue Gold Program (BGP) conducted Cropping System Market Oriented Farmer Field Schools (MFS) with
polder dwellers to promote the concept of “Agriculture as a Business” and with a view to increase
earning opportunities at household level. One of the major objectives of the Cropping System MFS is
increasing cropping productivity and profitability in the polder area in the extension of water resource
management efforts. To allow the farmers to experience potential improvements, BGP through its MFS
activities in close cooperation with DAE, promoted BRRI developed short duration rice varieties of T-
Aman rice on relatively high land where drainage of water is assured. Such land serves as a proxy to
good water resource management. We acknowledge this generally leads to a productivity improvement
but not really a profitability improvement of rice production. The objective though of the adoption of
short duration T-Aman rice, is to create the opportunity to cultivate more intensively and profitably
thereafter during the Robi season. In the Patuakhali area there is an opportunity to include short
duration Mustard before Mung bean on the same piece of land. While it is a widespread cropping
system idea, it is not practiced in the area. The question is why? For this purpose, we undertook the
Value Chain Analysis on Mustard.

Land area in acre Production in MT

900
800
Units in Thousand

700
600
500
400
300
200
100
0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Figure 1: Mustard Production trend in Bangladesh as of BBS-2015

Mustard (Brassica campestris) belongs to the family Brassicaceae. Bangladeshi farmers cultivate several
types of oilseed crops and the seeds are a popular and major source of edible oil in Bangladesh as well
as the Patuakhali region. During the last decade its production is expanding in terms of area and
production but the yield varies enormously between species and across locations. Mustard is generally
produced as short duration rabi crop before Boro rice cultivation. As a Government priority cropping

Mustard VCA Report 1 February 2017

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system (Cereal  Oilseeds  Pulses) DAE is trying to expand mustard in the Southern part of
Bangladesh.

Presently 77.51% of land under oilseeds in Bangladesh is covered by mustard (Yearbook of Agricultural
Statistics-2015, BBS). Oilseeds crop cultivation is although not widespread in Bangladesh, only 2.75% of
total agricultural land is under oilseeds cultivation (Yearbook of Agricultural Statistics-2015, BBS). The
total area cultivated under mustard in Bangladesh is 8,02,882 acre, with a production of 35,952 MT and
an average yield of 447Kg/acre (Statistical Yearbook, BBS-2015).

The same survey discloses that in Patuakhali, the mustard cultivated area is only 117 acre, with a
production of 27 MT and a yield of 230Kg/acre. So, as per Agricultural Statistics-2015 in Patuakhali the
average mustard yield is lower than the national average yield. In fact, the Patuakhali region including
Amtali of Barguna, and particularly the polder areas, are not included by DAE in their mustard crop
zoning on the basis of their actual cropping systems. In the BGP working area mustard only covers
0.001% of land (District Statistics, BBS-2011). Among BGP’s working upazillas (Polders in Bauphal,
Dashmina, Galachipa, Patuakhali Sadar and Amtali upazilla), Galachipa upazilla is the highest mustard
growing upazila in terms of land coverage and production. This area has more loamy soils, has
somewhat better water resource management and cultivates sesame after mustard, or drop the robi
crop completely.

The mustard market is not very seasonal as it is

produced across different production zones in
Bangladesh and the variability of prices is limited due
to imports and ease of storage. Oilseeds production
does not match requirements by far, so it has a large
local and national potential end-market demand if
production and quality can be improved.

Improved drainage and irrigation systems can induce

a substantial expansion of mustard cultivation and
productivity enhancement in polders 43/2B, 43/2D,
43/2E, 43/2F and 43/1A. Traditionally farmers keep
their land fallow for about 90-100 days after
harvesting T-Aman as the land is not ready for Figure 2: Information collection from the
ploughing due to water logging and by awaiting the Farmers
proper time to sow mung bean. Mustard is a short
duration crop which could fit between T-Aman rice
(improved variety) and mung bean cultivation.

Mustard VCA Report 2 February 2017

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Nearly 5-7% of cultivable land in Patuakhali, where

early drainage of water is possible and land elevation
is a bit higher, could come under mustard cultivation
if farmers would cultivate short duration rice e.g.
BRRI Dhan 53, BRRI Dhan 52 etc.

Mustard expansion demands little labour for sowing

in November when T-Aman harvesting is still
ongoing. This labour is although offered by the
tillage services which are idle during this period.
Harvesting of mustard does demand labour in
February when there is no alternative labour
demand. Women could be involved in post-harvest Figure 3: DAE UAO and TL of BGP, talk with
processes. mustard

In areas where the Blue Gold program provided support to T-Aman rice farmers and short duration
varieties were produced, DAE and TA staff encouraged 23 farmers to undertake 700 decimal trials with
mustard. Simultaneously a quick assessment was started on the mustard value chain with the aim to
improve the understanding of its present status, prospects and constraints, the market linkages for
both input and outputs, along with available service actors, mechanization and labour and issues in the
business enabling environment (BEE). Along with the positive results of the short duration rice in the
Cropping System MFS, there appeared a sufficient basis to proceed with the demonstrations ahead of a
more detailed value chain analysis.

Mustard VCA Report 3 February 2017

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2. Report preparation methodology

As indicated, discussions with DAE UAOs led to the initiative to set up block demonstrations. Their
continued involvement has proven to be very valuable. To prepare this Value Chain Analysis report,
information was collected from both secondary and primary sources. Information from secondary
sources was used to identify key informants on the value chain including relevant researchers, key
research organizations, as well as private and public actors. Information collection from meetings and
field visits helped us to structure key informant interviews (KIIs) and focus group discussions (FGDs) and
to validate the information from secondary sources.

Preparation The consideration of mustard in the local cropping system is not new. It arose from field
contacts between DAE staff and TA. DAE included mustard in their programs. DAE Upazilla Agricultural
Officers in the area supported the process throughout.

Key Informant Interviews (KIIs) with relevant stakeholders like mustard processors (crushing millers),
arotders, beparies (big buyer), farias (small buyers), advance farmers, extension service providers (DAE
officials), researchers (BARI-OFRD) who are involve with mustard production, improvement, extension,
processing, and trading. Through these KIIs, information was collected about problems and constraints
in the mustard Value Chain and how to address these issues as part of Value Chain Analysis.

Focus Group Discussions (FGDs) Jointly with DAE staff, a series of FGDs were conducted with local
farmers of Polders 43/2B, 43/2F & 43/2D using a guideline. Through the FGDs, information was collected
about cultivation practices, problems and constraints, prospects and marketing issues in the mustard
Value Chain and how to address these issues.

Figure 4: UAO of Patuakhali Sadar visited the Figure 5: UAO Amtali visited the mustard field in
Mustard field his area

Mustard VCA Report 4 February 2017

Blue Gold Program

3. Regional crop production context and

mustard production status

While overall mustard is cultivated on a limited

scale in Bangladesh, in Barisal division, Barisal Mustard cultivated Land area in acre
district is the highest mustard growing district in
terms of area and production. (Yearbook of 2% 4% 2%
Agricultural Statistics-BBS, 2015). Barisal
Bhola 19% 40%
In Barisal division Patuakhali district’s
Jhalokati
contribution to area coverage is only 4% and an
even smaller 2% to production. In Barisal division Pitojpur
33%
mustard productivity is 375Kg/acre; whereas in Patuakhali
Patuakhali productivity is only 230Kg/acre
Barguna
(Yearbook of Agricultural Statistics-BBS, 2015).
Actually, in Patuakhali region especially
Patuakhali and Amtali upazilla, mustard is not a
regular crop.
Mustard Production in MT
In the monsoon most of the rice growing lands
submerge in Patuakhali sadar, Bauphal, Barisal
1% 2% 1%
Dashmina and Galachipa upazilas of Patuakhali
Bhola
and Amtali upazila of Barguna district. There is no
16% Jhalokati
high land area in these BGP polders for field crop 41%
production. but there are some medium high Pitojpur
lands. In Patuakhali region farmers mostly (>80% Patuakhali
of land) cultivate long duration (180-220 days) 39% Barguna
local rice varieties which is one of the major
constraints for mustard cultivation or any other
Robi crop. Focus Group Discussions confirmed
farmer awareness of DAE mustard
demonstrations. In addition, there were Figure 6: Mustard production scenario in Barisal
demonstrations by OFRD and NGOs. Still only a division
very few advance farmers cultivated mustard
after T-Aman rice. Doing so, they mostly sacrificed mung bean production thereafter or were sowing
late and therewith were running into climatic hazards (rain and storm) at harvesting time.

Mustard VCA Report 5 February 2017

Blue Gold Program

As mustard is not a very non-conventional crop in the Patuakhali region, there is no specifically
developed or functional market for inputs, outputs and other required services. But by prior demand
arrangements the seed sellers of Patuakhali were able to ensure the required quantity and variety of
mustard seeds.

Mustard VCA Report 6 February 2017

Blue Gold Program

4. Mustard value chain and market system

4.1 Overview of mustard value chain

The findings of this report are presented in line
with the three value chain analysis elements,
namely the core actors’ functions along the
value chain, the supporting actors’ services and
the enabling environment, again constituted of
a number of actors and organizations. The core
functions directly involve the market actors
which deal with buying and selling of products,
the supporting functions deal with the relevant
services that impact on producing, processing,
handling and distributing the product and the
enabling environment deals with rules and
regulations which impact on the functions of
the actors in the value chains. Figure 7: Information collection from output actors

Core Function and Actors: Input sellers, Producers, traders (Faria/Bepari), Processors, and
wholesalers/retailers are defined as core actors directly involved with mustard input and output market.
Supporting Function and Actors: Micro Finance Institutions (MFIs), Transport agencies, line agencies
and research institutes, such as Department of Agricultural Extension (DAE), BADC, Oilseeds Research
Centre of BARI (ORC-BARI), On-Farm Research Division of BARI (OFRD-BARI), Department of Agriculture
Marketing (DAM), public and private companies (seed, fertilizer, pesticide) etc. these actors are involved
indirectly to provide support for stimulating market change to leverage a response within a specific
market system.

Enabling Environment: Ministry of Agriculture (MoA), DAE, Seed Certification Agency (SCA), Food
Department, Union Parishad (UP), and Market Committee, etc. formulates, regulates and implement the
different government policies, rules and regulations, issue trade license, undertake registration, quality
control etc. all elements which create the enabling business environment.

Mustard VCA Report 7 February 2017

Blue Gold Program

4.2 Value Chain Map

Value Chain
Value Chain Actors Support Market Actors
Function
Consumption

End Consumers (Self use End Consumers (National

& Local market) end market) Financial Services (Banks,
MFIs, NGOs,
Moneylenders
95% self-use 100%
5% Mkt.

Imported mustard seeds

Oil Trading (Output

Retailers
Extension and Research
Market)

Services (DAE, BARC,

100% BARI, Agri. University)

Distributers/Dealers

Transport Agencies
100%
Processing

Local Level
Regional/National Level
Crushing mill Tillage and Irrigation
Processor
100% Service Providers

100%

Bepari/Arotders District level

(Output Market)

(Large Traders)
Grain/Seeds

Traders

90 100%
%
Faria/Chatia Union level
(Small Traders)
Traders
10% Enabling Function Actors
Production

 MoA, DAE, NSB, SCA,

Mustard Producers
UP and Market
committee
5% Pvt. Co 95% 70%
BADC Agrochemical Retailers
Seed Retailers
Input Supply (Input Market)

(Fertilizers & Pesticides

60%

30%

Agrochemical Dealers
Seed Dealers
(Fertilizers & Pesticides

Seed companies BADC BCIC/Fertilizer’s Companies

4.2 Mustard Value Chain Map

Mustard VCA Report 0 February 2017

Blue Gold Program

4.3 End Market and Market Level analysis

International Market
Bangladesh is a deficit country in oilseeds production. A substantial quantity of mustard seed is imported,
mainly from India through the Benapole land port. Mustard has unmet national, regional and local market
demand. Due to taste preferences and its multipurpose use, the demand for mustard oil is substantial and
only a fraction is met by locally produced mustard. No mustard oil is imported, only soya and palm oil.

Also mustard oilcake is a highly demanded by-product and equally its local, regional and national demand is
unmet. Again, India is a large supplier of mustard oilcake.

National Market
The large mustard traders in the
national market are mostly
found in Pabna, Sirajganj,
Tangail, Dhaka, Narsindi and
Chittagang etc. From these large
traders the oil moves into the
distribution channels (regional
traders, districts traders, small
traders, and grocery shops) to oil
end-consumers. Sometimes the
end-consumers are also reached
by the local oil processors.
Square, Ruchi, Teer, Suresh, Al
Modina Oil Mills, Paul, Tanveer
Mustard Oil Mill, Amrita, etc. are Figure 8: Nationally processed mustard oil in the market
the big mustard oil marketing
companies in Bangladesh. The demand for mustard from these processors is growing every year and new
companies are emerging. The branded bottled mustard oil price is Tk. 240-250/Litre and loose oil (not
bottled, unbranded) is Tk. 140-180/Litre. The product competes to some extent with maize, soya and palm
oil.

Regional Market
The regional market level for mustard oil from Patuakhali is defined by the district and divisional market of
South-western part of Bangladesh. At regional market, the key role players are the large beparies and
arotders which are mainly based in Patuakhali Sadar, Golachipa, and Amtali of Borguna. There are only a
few large arotders collecting mustard seed from paikars/beparies. Sometimes large collectors (beparies or
paikers) sell mustard directly to millers. The large paikars/beparies sell mustard to the arotders/millers at a
profit of Tk.1/kg, in this case the incurred costs like labour, transports, bagging etc. are born by the
arotders/millers. Arotders sell to the big millers in distant districts at a profit/commission of Tk. 1-1.20/Kg
after incurring all costs for loading, bagging etc. and the millers bear transport, unloading and other costs.

Local Market – Polders and Upazilas

Very little of the production in Bangladesh, including Patuakhali, goes to the national end-consumer market
through either mustard traders or oil processors. Up to 90% of the production of mustard is used by the
producers themselves or by local end-consumers. The population in the polders and upazilla constitute the

Mustard VCA Report 1 February 2017

Blue Gold Program

local consumers’ market for mustard. The main market places are Amtali badghat, Kalagachhia,
Badurabazar, Amkhola bazar, Hajirhat, Khasherhat, Boga, Chunakhali, Chiknikandi, Botolbunia, and
Khatashia. At household consumer level mustard oil is considered one of the more expensive oils on the
market, still there is an indication that demand is increasing locally. Mustard seeds are used as mash to eat
local cake (Pitha) but are mostly consumed as edible oil after processing/crushing and its by-product-
oilcake-is used as fertilizer, fish feed and as well as cattle feed. In the local market farmers sell oil at Tk.
120/Litre and oilcake at Tk.40-45/kg. Other uses for the oil are (i) as medicine for new born bay body
message, (ii) as hair oil for all, (iii) as body lotion mainly in winter season, (iv) used in potato or any other
mash preparation, (v) in salad preparation etc.

A preliminary focus on the local demand at introduction of a crop in an area, such as Patuakhali, is justified.
Most of the mustard producers of Patuakhali use their produce for family consumption, and only a limited
number of farmers sell any mustard and, if doing so only a small quantity of their production.

4.4 Production and Producers

Availability of Land
In this region there is no high land for field crop production, moreover tidal flows and long monsoons and
heavy rainfalls reduce the crop cultivation options of the farmers. Moreover, poor drainage systems in the
polders hinder the cropping system and crop diversification. Still in every polder nearly 5-7% of the land is
feasible for mustard cultivation under existing (poor) water management systems. If the water
management systems improve then 10-15% of the land potentially can come under mustard cultivation.

Mustard Producers in the Polders’ area:

Mustard is not new crop, but no farmers were found who continuously cultivated mustard or had several
years of experience with its production. Mustard cultivation was mainly undertaken by extension agencies
setting up demonstrations. There are no producer groups for mustard in BGP’s working area in the
Patuakhali region. Farmers who cultivated mustard before could not say what variety they had cultivated,
or clarify their crop management practices like fertilizers application, pest management, etc.
The KII and FGD information indicates that farmers have sown mustard late November and harvested late
February, thus they endured a loss by sowing their mung bean late in that field. The reported mustard yield
varied from farmer to farmer and was between 100-300Kgs per acre of land. All mustard growers reported
that they faced an infestation of ‘small black insects’ (aphids) and they sprayed insecticides as remedy. One
reported to have irrigated the mustard field.
All interviewed farmers produced mustard for edible oil in home consumption. With a production on 40-50
decimal of land the farmer can meet the yearly HH demand of edible oil. Farmers take their mustard to local
mills for crushing and take the oil home along with some oil cake. There appear sufficient mills in the
locality.

Production Trend
For the last decade, land acreage under mustard cultivation is increasing in Bangladesh. As per District
Statistics, 2011 this is also true in Patuakhali region (BGP working upazilas), namely from 285 acres and
79MT of 2019-10 to 300 acres and 85MT in 2010-11. But this production trend does not match the rising
demand; i.a. by population growth.

The Patuakhali region including Amtali of Barguna, and particularly the polder areas, is not featuring as a
mustard growing zone in DAE’s zoning. Due to water resource conditions related to the long monsoon

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Blue Gold Program

mustard simply does not fit in the present cropping systems. In the BGP working area, mustard only covers
0.001% of land (District Statistics, BBS-2011). Among BGP working upazillas (Polders in Bauphal, Dashmina,
Galachipa, Patuakhali Sadar and Amtali upazilla), Galachipa upazilla is the highest mustard growing upazila
in terms of land coverage and production.

The main reason for the increasing trend, is the extension work through demonstrations by the Department
of Agriculture Extension (DAE) and other line agencies including NGOs activities. BARI played an important
role in increasing mustard cultivation by developing short duration mustard varieties.

Productivity of Mustard
Also productivity is increasing across the country but remains lower than expected on the basis of the BARI
recommendations. In Patuakhali region the productivity lags behind the national productivity and it is
particularly poor. (Agricultural Statistics-2015). Reasons include, poor adherence to recommended

Bauphal Dashmina Galachipa Bauphal Dashmina

Patuakhali Sadar Amtali Galachipa Patuakhali Sadar
Amtali
4%
3%
6%
9% 27%
32%

47% 16%
42%
14%

Mustard Production (MT) in Patuakhali

Mustard Land (ac) in Patuakhali

Fig: Upazila wise land coverage and Production as per District Statistics, 2011
cultivation practices, poor crop management and particularly quality seed and timely ploughing.
In Patuakhali productivity is 230Kg/acre, whereas national productivity is 447kg/acre. Late seed sowing
(entering short winter), poor management, susceptibility to diseases, insect pests attacks and limited to no
fertilizer use, are the main causes for low productivity. The core problem among these is late sowing due to
late T-Aman harvesting.

4.5 Cultivation Practices of Mustard

Seed Use (Variety):
In the FGD farmers had no idea of what
variety they cultivated last year or the year
before. From DAE staff and seed suppliers
it appears that most farmers probably
were cultivating BARI Sarisha 11 (Sampad)
and BARI Sarisha 14 in this region. Bari
and DAE recommended varieties are BARI

Mustard VCA Report 3 February 2017

Figure 9: Fig: Mustard field at Polder 43/2F

Blue Gold Program

Sarisha Tory-7, BARI Sarisha 14 and BARI Sarisha-15.

Tillage:
While late, farmers ploughed according to tiller availability. Those owning a tiller ploughed 3-4 passes while
those renting a tiller ploughed 2-3 passes. The former is the recommended practice as mustard is a small
size grain.

Crop Management:
Farmers who cultivated mustard as demonstration, applied fertilizers as per DAE supplied rate. They, and
neither the farmers who cultivated on their own initiative, could recall which fertiliser dosage they used. All
the farmers did report that they used TSP (Kala sar) and urea (sada sar) and that they provided one
irrigation. Meanwhile, none of the farmers had taken any weed control measurement (neither manually
weeding or weedicide use).

Harvesting and Yield:

The farmers didn’t recall the actual crop life cycle, but they assumed that crop duration was 85-90 days
after seed sowing and harvesting at the end of February. They harvested plants with pods and heaped in
place then threshed by gentle beating with a stick. While farmers reported mustard yields of 100-
300Kg/acre, it must be possible to achieve 400Kg/acre. This yield depends on seed sowing time, fertilizer
use, irrigation and pest control measurement etc.

Post-Harvest Activities:
Post-harvest activity for mustard is rather simple. After threshing, 2-3 days of sun drying is required to have
seeds ready for processing or shelling. Since it is a very small grain, mustard should be dried on the
polythene sheet, blue net, mat or something similar.

Processing and Uses of Mustard:

In Patuakhali there are several mustard crushing mills in and around the polders area, so mustard crushing
capacity is not a problem. The crushing service charge varies from mill to mill and from place to place, but is
generally from Tk.8 - 10/Kg mustard seed. At Galachipa an alternative system operates. Anybody bringing
40Kgs mustard to the mill, receives at no further cost 12-14Kgs of crude oil in return depending on seed
quality. In the former system the farmer receives also the oilcake, while in the latter the miller retains it.

According to farmers and local millers the oil content in mustard seed is 25-40% of seed weight varying on
seed quality. The variation is explained by mustard variety, seed quality and crushing technology. The
Manager of a local mill, the Sikder Flour & Oil Mill, reported that the oil content in mustard seed is 32-35%
(13-14 Kg oil per 40 Kg mustard seeds). At the same time mustard oil cake content is 55-65% (22-26Kg oil
cake produced from 40Kg of mustard seeds) of mustard seed weight.

Marketing:
Across the country the main usages of mustard seeds are edible oil, hair oil, body lotion and as medicine. In

Mustard VCA Report 4 February 2017

Figure 10: Local level mustard crushing Mill at Patuakhali

Blue Gold Program

the rural areas mustard oil is, besides as edible oil, largely used as insect repellent for new born babies and
for adults against cold related diseases. In addition, it is widely used in the preparation of fried rice and
different types of mash, in Patuakhali, particularly to eat with local cake (pitha). In this region more than
90% of mustard seeds are used for household oil consumption and 10% of seed is sold in the local markets.
Very rarely some oil is traded. Farmers use oil cake as fertilizer in their beetle leaf field, and as fish feed and
cattle feed.

4.6 Margins and Profit

Despite the low productivity mustard cultivation is still profitable as a ‘chance crop’ in between T-Aman and
mung bean. On the basis of our information a preliminary gross margin calculation was made in Table-2.
The production costs with minimum inputs (as per demo farmers) are around Tk.6,500/acre and
Tk.8,500/acre with recommended inputs. The revenue is respectively Tk.9,500/acre and Tk.15,200/acre,
resulting in a respective gross margin of Tk.2800/acre and Tk.6500/acre. Mustard cultivation as an extra
crop appears sufficiently profitable. It has a year-round demand and a relatively steady market price. The
latter is attempted by satisfying demand through balancing domestic supply with imports.

Table 1
Cost and Profitability Calculation in 1ha of Land (Grain basis)
Existing Practices with low Recommended
Head of Expenditure/Income Description
inputs (Tk.) Practices (Tk.)
1 Land preparation Rental Tiller (3 Passes) 2,500 2,500
2. Cost for Input use
a Seed BADC Seed, 2.8Kg 182 182
b Fertilizers
b.1 Urea 810 1,215
b.2 TSP 910 1,457
b.3 Gypsum 00 486
Fertilizers
b.4 MoP 180 300
b.5 Borax 00 120
b.6 Zinc Sulphate 00 100
Sub-Total for Fertilizers in Tk. 1,900 3,558
c Pest Management
c.1 Insect killer (depends on insect attack) 265 265
Insecticides
c.2 - -
c.3 Thiovit - -
Fungicides
c.4 Amister Top -
Sub-Total for Pest Management 265 265
d Irrigation Own/Rental Pump 500 500
2. Total Cost for Input Use in (a + b +c + d) Tk. 2,847 4,505
3. Cost for Labour
3.a Land preparation (@Tk. 300/day) 150 150
3.b Seeds sowing in line (@Tk. 300/day)
3.d Own/Family Labour Irrigation/drain-out 150 150
3.e Crop harvest (@Tk. 300/day) 600 900
3.f Shelling, drying & bagging (Tk.300/day) 300 300
Sub-Total for against Family Labour in Tk. 1,200 1,500
3.g Seeds sowing in line 00 00
3.h Hired Labour Irrigation/drain-out 00 00
3.i Crop harvest 00 00
Sub-Total against Hire Labour in Tk. 00 00
3.Total Cost for Labour use (3a-3l) in Tk. 900 1,200
Total Production Cost (1+2+3) in Tk. 6,547 8,505
4. Revenue Earned from production

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Blue Gold Program

Existing Practices with low Recommended

Head of Expenditure/Income Description
inputs (Tk.) Practices (Tk.)
Main crop/Product (Tk.45/Kg)
a 202 Kgs for existing practices and 9,090 14,580
Produced
324 Kgs for optimal practices.
b Byproduct/plant stems (Lump sum) 400 600
Total Revenue earned/Income (4a+4b) in Tk. 9,490 15,180
5 Marketing Cost
a Bagging/Packaging -
b Transportation 100 150
Selling Cost
c Labour
d Tax
Total Marketing Cost in Tk. 100 150
6 Total Cost of Enterprise (1+2+3+5) in Tk. 6,647 8,655
7 Gross margin (4-6) in Tk. 2,843 6,525
ROI (including labour) 54% (43%) 95% (75%)
Note that labour costs are difficult to define at this stage, especially own labour inputs. The calculations
include very rough estimates at present. Their importance is although recognised for future comparisons
between crops on the basis of returns to labour.

Ignoring hired and own or family labour, the ROI are respectively 54% and 95% which is a substantial return.
The returns of mung, ignoring labour (126%), are somewhat higher but particularly labour is a major cost
for mung. It indicates mustard to be of a somewhat higher investment risk with a slightly lower return on
the expenditure put at risk but most probably a higher return on labour. Actual risks are also lower than for
mung and sesame, which have higher climatic risks. For mustard risks are largely limited to pests and a lack
of irrigation water. One must also remember this is an extra crop. Farmer decision making so far was
determined by opting for the higher return on mung or sesame and by the time constraint to fit in mustard
between T-Aman rice and mung or sesame. There are few alternatives, but the mustard-mung combination
could be replaced by a high risk watermelon crop for example.

Table 2
Cost and Profitability Calculation for 40kg (1 mound) mustard seed (Oil basis)
Head of Expenditure Limited input Optimal input Remarks
Production cost of 40kgs mustard seeds 1,296 1,050 Optimal input  more produn. 
1
less prodn. cost
2 Crushing (Tk. 8/kg) 320 320
3 Transport 50 50 Person + Goods, Up-down
4 Others (like wage cost) 100 100 Lump sum
5 Total oil production cost (Tk.) 1,766 1,520
Revenue Earned
Main product (Oil) 12 L 14L Optimal input  better quality 
6
By-product (Oil cake) 26Kgs 23Kgs more oil prodn.
Value received from edible oil @ Tk. 1,440 1,680
7
120/L oil
Value received from oil cake (by- 1,170 990
8
product) @ Tk. 45/kg oil cake
9 Total revenue earned (Tk.) 2,610 2,670
10 Packaging cost (Tk.) 50 50 Used water bottle
11 Total Cost Tk. (5+10) 1,606 1,419
Gross margin (Tk.) 884 1,150

Table 3
Value comparison Mustard Seeds versus Own Comparison Oil

Mustard VCA Report 6 February 2017

Blue Gold Program

Head of Income Limited input Optimal input Remarks

1 Production maund per acre 5.05 8.1 ref. table 2
2 Oil received (liters) 60.6 113.4 ref. table 3
3 Oil cake received (kg) 131.3 186.3 ref. table 3
4 Value consumed Oil and Oil cake 4,010 9,275
5 Selling income mustard seeds 2,843 6,525 ref. table 2

Table 3 compares the income from selling the mustard production as seeds to the value of own
consumption of seeds in the form of oil and oilcake (expenditure replacement). Under the above
assumptions the income, or expenditure reduction, generated by own consumption compares well
(4,010/9,275) with the income from selling the produce as seeds (2,843/6,525). If one makes provision for
the financing cost of seed storage in the former the benefits might be almost similar though. The
processor’s income is 8 BDT on 45/kg. This seems substantial but has to cover his investment and
operational costs and still appears acceptable as the value of own consumption is definitely not lower than
the income from the sales of seeds.

4.7 Backward linkages – Input market actors’ function

Seed sellers (Dealers & Retailers):

In Bangladesh there are 17

varieties of BARI and 8 varieties of
BINA mustard seeds. Not all
varieties are high yielding and not
all varieties are feasible and
profitable in the Patuakhali region
but three varieties are generally
recommended (BARI Sarisha – Tory
7, Sarisha 14 and 15). The seed
supply chain is not really Figure 11 Mustard seeds sold by Seed dealers
considering the agro-ecological
feasibility and cropping systems of this region. The recommended varieties are not widely available, neither
in the polder, nor at district level.

On the one hand there is little specific demand. Few farmers have heard of these varieties and their
advantages in terms of yield and short duration characteristics that make these feasible to cultivate
between T-Aman and mung bean. On the other hand and in reply, the seeds are only to a limited degree
distributed by BADC and private companies like Krishibid Group, ACI Seeds Ltd., Siddik Seeds etc. On the
supply side, there is very little or no evidence of any promotional activities for suitable and quality mustard
seeds. Besides, mustard seeds are not always timely available and of the desired variety in the small and
uncertain market in Patuakhali.

Mustard VCA Report 7 February 2017

Blue Gold Program

Of the total demand, 95% of mustard seed originates from BADC and the rest is sourced from private
companies. When selling BADC seeds, BADC dealers must adhere to a fix price and get only a commission
which results in a lower profit. In case of private company seeds, dealers earn more profit on a higher
selling price. The BADC price of mustard seed is Tk.65/kg whereas it is Tk.115-125/Kg for private company
seed. About 70% of mustard seed is purchased directly from the dealer and only 30% from retailers. This is
somewhat odd but DAE and NGOs are responsible for most of the seed purchases for use in their
demonstrations. New farmers entering the business buy small quantities and other farmers seldom use
their own preserved seeds. The small amount required (1 kg for 40 dec) and low cost involved (1kg = Tk.65)
is not worth the seed preservation trouble. An actors list is attached as Annex-1.1

Agrochemicals Sellers (Fertilizers and Pesticides):

Fertilizers and pesticides play an important role in crop production including mustard cultivation. Fertilizers
and pesticides are made available by the retailers but the farmers often complain about quality and price of
pesticides and fertilizers.

Urea, TSP and MoP fertilizer is supplied by the government agency (BCIC) supposedly at fixed prices but the
farmers can’t access it at this government declared rate. Farmers have to pay Tk.1-2/Kg more than the
declared price. Gypsum and boron are supplied by private companies. An actors list is attached as Annex-
1.2.

Mustard is susceptible to insects especially aphids which can reduce the yield of mustard as well as the
quality dramatically while IPM practices are ignored. Agro-Chemical input providers are not very
knowledgeable on mustard diseases and tend to give priority to personal gain above farmer result. They
have active marketing and sales forces in district headquarters and at Upazilla level, but their distribution
networks at polder and union level are insignificant.

Seeds/Fertilizers/Pesticides (BADC/ BCIC/ Traders/Sellers Mustard Producers

Private Companies) (Dealers/Retailers)

Figure 12: Supply Chain for Mustard in Patuakhali

4.8 Forward linkages – Output market actor’s functions

Faria/Chatia: Faria is a kind of small trader who collects mustard along with other grains (rice, mung bean,
sesame etc.) from farm gate and different hats (bazar). They are generally local people and purchase
mustard from the farmers and sell to bepari/arotders (big buyers) who receive in bulk and sell to the
processors. Generally, farias carry their own weighing scale during hat day and purchase cash. Mostly they
sell also cash or sometimes on credit and sometimes they receive an advance payment from the
bepari/arotders. In this region, there are many farias buying grains/seeds who also buy mustard. An actor’s
list is attached as annex 1.3.

Table 4
Invest and profit calculation for Farias of Mustard
SL. Head of expenditure Cost (Tk./mound) Remarks
1 Mustard seeds (grains) 1,800.00
2 Toll to hat committee 10.00 Sometimes no toll (as small amount)
3 Jute bag purchase 00.00 Provided by bepari

Mustard VCA Report 8 February 2017

Blue Gold Program

4 Weighing 00.00 Own labour

5 Transport cost 10.00 For bulking. Sometimes sold from hat, and cost paid by bepari.
Total cost 1,820.00
6 Sale value 1880.00
Profit 60.00 varies Tk.1 - 2/Kg

Bepari/Arotders: Beparies/arotders collect mustard from farias and sometimes directly from producers at
their business place (arot) and bulk substantial quantities at Patuakhali Puran Bazar, Galachipa and Amtali.
After bulking they contact processors/large millers in distant markets and sell as per agreement in Pabna,
Sirajganj, Tangail, Narshindi and Dhaka. In Barisal there is a big mustard processor, but he procures mustard
mainly from Barisal and Bhola district. Processors/large millers crush mustard and market mustard’s
finished products (oil and oil cake). Usually the arotders receive Tk.40-50/mound as profit/commission
excluding all kinds of incurred cost. There are no exclusive businesses/arotder for mustard. They conduct
their mustard business along with other agriculture products. The arotders provide handling labour, storage
facilities and invest money in the trade. They ‘oil’ the system with credit satisfying the cash needs of the
producing farmers. The investment and profit calculation of arotders for mustard is given in the table
below. An actors list is attached as Annex 1.4.

Table 5
Invest and profit calculation for Farias of Mustard
SL Head of expenditure Cost (Tk./mound) Remarks
1 Mustard seeds (grains) 1,880.00
2 Jute bag purchase 32.00
3 Labour 2.00
4 Local transport cost 10.00 Truck fair paid by Processors/buyers
5 Truck load (Labour) 6.00
6 Warehouse rent 00.00 Warehouse fair incurred on main products
Total cost 1,930.00
7 Sale value 1980.00
Gross margin 50.00 Varies Tk. 1 to 1.25/kg

Mustard VCA Report 9 February 2017

Blue Gold Program

Oil Seed 2015 Oil Seed 2014 Oil Cake 2015 Oil Cake 2014
60

50

40
Price rate TK/Kg

30

20

10

0
Averag
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
e
Oil Seed 2015 42 43 43 45 46 46 47 48 48 50 50 52 47
Oil Seed 2014 47 42 42 43 43 44 45 46 48 48 49 50 46
Oil Cake 2015 29 29 29 29 31 31 31 31 32 32 32 32 31
Oil Cake 2014 29 28 28 28 28 28 30 29 29 29 29 30 29
Monthly price rate of Mustard seed and Oil cake, BBS-2015
Figure 13: Countrywide monthly prices of mustard seeds and oil cake for 2014 & 2015

Local Processors/Crushers: There are sufficient local processing mills in this region that can be categorized
from small to medium mills. Most of these are old and pre-date the expansion of mung bean cultivation in
the area when a lot of sesame was cultivated instead and farmers where still very much self-dependent for
their needs. These mills presently crush mustard along with sesame and sunflower and only provide a
crushing service. None of these are involved with post-crushing processing and distribution or marketing
activities for either oil or oil cake. As a result, they do not impact directly on the mustard seed price.

Local millers do not seem to be interested in such vertical integration of value chain functions. Such
activities would bring along major stock financing costs. The local mill combines business in flour milling,
spice crushing, rice husking and oil seed crushing to maintain a balanced operation over the year. The
rather limited supply of oil seeds does not encourage them to renovate their technologies or invest in more
efficient technologies. As a result, crushing technology at local level is not efficient when compared to the
large scale millers such as Savar, Pabna or Narshindi. Large mills can obtain 40-45% oil content while local
mills only obtain 32-35% oil of unrefined condition.

Table 6 provides a profitability calculation for a local miller. Local mills do not procure mustard or sell oil but
charge a service fee per maund. Only in Galachipa there is an alternative system based on exchange. For
one mound (40Kgs) of mustard the millers return 13-14Kg mustard oil in exchange depending on mustard
quality. A list of local oil mills is attached as Annex 1.5.

Table 6
Cost and Profitability Calculation for 40kg mustard crushing
Head of Expenditure Unit Cost Cost for Remarks
(Tk.) 40Kgs (Tk.)
Salary/Wage (Manager, Driver) 21,000 87.50 Crushing Capacity 8 mound/day

Mustard VCA Report 10 February 2017

Blue Gold Program

Head of Expenditure Unit Cost Cost for Remarks

(Tk.) 40Kgs (Tk.)
Electricity bill per month @ Tk.10/unit 15,000 62.50 50 units for 8 mound
Room fare per month 4000 17
Depreciation for machine per year 5,500 2 Total value Tk. 110,000, Life 20 years
Monthly miscellaneous & maintenance 1,500 6 Lubricant,
Total Crushing Cost (Tk.) 175
Revenue earned @ Tk.8/kg 320 Generally, rate is Tk. 8-10/kg
Gross Margin 145

Wholesalers/Retailers
PRAN, ACI, BD-FOODS, SQUARE, Fresh, Suresh, etc. are the leading companies engaged in the sale of
packed mustard oil from small to large bottles as consumer item. They collect mustard seeds mainly from
regional markets and through seed import. They directly take oil from millers located at Pabna, Sirajganj,
Narshindi and Dhaka.

Presence of a Large Number of Middlemen

The oilseed crop value chains are characterised by the presence of a large number of middlemen. At each
level of middlemen some value is added of which some part is margin/profit. The extent of value added by
other actors determines the share of end-product value governed by the farmer, while the extent of power
an actor can exert on others in the value chain commands the margin. Overall the margins of the
middlemen are not that high though. While there are no exclusive mustard middlemen, there are many
trading in rice and mung serving the mustard farmers as well. A major factor exerting a downward pressure
on local mustard prices are the high transportation costs due to poor infrastructure and connectivity.

Produce Chatia Bepar Arotde Processo Distributo Whole Retaile

r / Faria i r r r seller r

Table 7
Added value and margin analysis along the value chain
Value Chain Actor added value and margin share Analysis - Mustard
Value Chain Actor Cost Revenue Margin Value
total cost Added cost % added cost* price margin** % total margin* value % retail price % processor price
Farmer 1050 1050 94% 1800 750 87% 1800 48% 91%
Faria 1800 20 2% 1880 60 7% 80 2% 4%
Arotdar 1880 50 4% 1980 50 6% 100 3% 5%
Processor 1980 0% 0% 0%
Retailer 0 0% 3780 0% 1800 48%
Total 1120 860 3780
* up to processor level **excludes by-product

Table 7 presents an analysis of the added value generated and margin realised of the main actors in the
mustard value chain. The figures are at best indicative and at the higher end of the value chain some are
difficult to determine. Overall, they give a reasonable idea of the actual situation. The farmer receives
nearly half of the retail price, though this could drop to 40% if the bottled end-product is considered.
Farmers can at best hope to supply to distant market processors so indicators up to that level are
sufficiently of interest. The farmer takes responsibility for most of the costs, and commands only a slightly

Mustard VCA Report 11 February 2017

Blue Gold Program

lower margin and share of the processor price. Contrary to general belief, the margins by the trading
middlemen are not excessive. It is an indication of the extent of competition in the trading of grains/seeds.
Simultaneously, it gives an idea of what stands to be gained when farmers integrate the functions
performed by these middlemen. On an individual basis farmers will face much higher transaction costs and
at present low volume production levels it will be hard for them to coordinate the bulking and the
transportation to gain from this. Moreover, this is not an issue at present as farmers largely produce for
home consumption. Table-8 presents a similar analysis for the home consumption option of edible oil.

The margin of the processor is substantially higher (11%). They are somewhat of a local monopolist but the
financial advantage to the farmer of oil for home consumption over selling the seeds (see table-3) is an
indication that the processor is reasonably held in check by this alternative market channel and that his
margin is not excessive. Besides, his share of the total cost, of the value and his margin are nearly identical
and are indicative of a well-balanced relation.
Table 8
Cost, Value and Margin Analysis for home consumption end-product

4.9 Support functions and actors

Business Development Services
There are no dedicated business service providers for mustard farmers. Farmers expect that information
about cultivation should come from public extension service providers free of cost. Thus there is limited
scope to promote transacted extension services to the farmers.

However, few farmers seeking to sell seeds do look for information on current market prices which can help
them decide in which market they should sell. Most of the farmers have access to mobile phones but are
still constrained in accessing sources of information. Community Information Centres (CIC) by Grameen
Phone and Call centres by Bangla Link could be widely accessed by farmers for information on market
prices. Prices are available from several large markets for the main crops and from Dhaka market for
vegetables. The AIS Krishi call centre provides information on production technologies, while DAE and BARI
have extensive internet platforms with information on cultivation practices.

Embedded Business Services

Mustard crops are vulnerable to weather, diseases and insects. Most of the pesticide manufacturing and
marketing companies like Bayer Crop Science, Syngenta Auto Crops and ACI have their operations in the
broader project area but not inside the polders. The private seed companies including Krishibid Seeds, ACI
Seeds and Siddik seeds are represented by their dealers and retailer network.

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Blue Gold Program

Farmers have no, or do not, access reliable sources of information regarding improved seed varieties and
cultivation practices from competent sources. Due to a lack of institutional support farmers have to rely on
input traders for seeds, fertilizers and pesticide supply and use. The input traders are generally aware of
pesticides’ impact against cost but business objectives prevail. Seed dealers can advise about seed rate and
can share the performance of seeds from his previous farmer-clients. Promotion of recommended varieties
will have to precede this.

Research
Bangladesh Agriculture Research Institute (BARI) has an Oil Seed Research Centre at Ishwardi, Pabna. They
regularly introduce new high yielding mustard seed varieties and recommend improved production
technologies. BARI so far promoted 17 varieties for mustard of which 2-3 varieties are recommended for
southern coastal region. Another institute promoting new mustard seeds is the Bangladesh Institute of
Nuclear Agriculture (BINA). They have introduced 8 varieties for mustard. DAE demonstrates the suitable
varieties.

State Owned Enterprise Involvement – BADC and BCIC

Bangladesh Agricultural Development Corporation (BADC) is engaged in the supply of seeds at farmer level
through its vast network of dealers. But its access to the polder region is very limited. BADC markets
different mustard varieties. In order to get seeds, timely local level dealers have to place the demand well
ahead of seed sowing. As there is little demand for mustard seeds local level input traders are not inclined
to maintain inventory of good quality mustard seeds. As a result, the appropriate HYV seeds are often not
available in the local input selling shops.

A similar organisation is Bangladesh Chemical Industries Corporation (BCIC) that is responsible for the
manufacturing and distribution of fertiliser to its selected dealers. Generally, the coastal farmers are
reluctant to use fertilizers, while the actual mustard cultivation season is considered the off-season for
agro-inputs business in the Patuakhali region. That why the dealers refrain from stocking fertilizers. BCIC
provide fertilizers to their limited number of registered/licenced dealers in bulk, but most of them (BCIC
dealers) are not much involved with retailing.

Tillage, Irrigation and labour services:

Tillage services are important to ensure the timely land preparation in mustard cultivation. Some WMGs
have received power tillers (PTs) from FAO. They are using these PTs to provide tillage services to farmers,
generally through leasing private operators. Other PT service providers are also present in the market. The
supply of tillage services is not problem in mustard production as its demand is at a lean period of crop
cultivation. Generally speaking there are enough power tillers available in the locality. In this area tillage
service costs are Tk.2,500/acre including seed sowing (local unit Tk1500/Kurha). That’s identical to the rate
for mung bean ploughing but involves 3-4 passes instead of 2-3 for mung bean.

Labour is not a problem for mustard cultivation as at the time of seed sowing no hiring of labour is required
and harvesting time is not a problem as it is a lean demand period for agri-labour. Having said so, mustard
cultivation creates an opportunity for agri-labour during lean labour demand periods.

Irrigation pump services demand attention. In the polders, there are no specific irrigation service providers
for mustard or any other crops. Mustard farmers usually do not apply irrigation (flood), but some farmers
express their interest to practice irrigation. Some farmers possess LLPs generally used for fish ponds. Also

Mustard VCA Report 13 February 2017

Blue Gold Program

some WMGs have received LLPs in the agricultural mechanisation package from FAO. Farmers usually
prefer to use scarce irrigation water for another crop like Watermelon. This crop is an alternative to the
mustard-mung bean combination, requires frequent irrigations using a different technology (canal), is more
profitable but also riskier.

Training and Information on Technical Issues

Training and Information on technical issues regarding improved varieties of mustard seed, improved
production practices, and post-harvest processing can be obtained from DAE, OFRD of BARI and BINA. In
addition, sometimes university scientists are available to provide support.

DAE is supportive in the promotion of high yielding mustard cultivation particularly in the Patuakhali region.
Their upazilla level officials have shown interest and provide technical support to mustard farmers with
respect to good production practices. It will take additional efforts to bring them to the producer groups as
they have a busy schedule and are often engaged in different (non-agricultural) activities.

Transportation
BGP working Polders are connected with upazila and district city Patuakhali by road transportation and
waterways while its connection with the Barguna district head quarter is rather difficult. The roads inside
the polder leading to the main road to Patuakhali are although often narrow, marked by potholes and
mostly unpaved. As a result, transportation is not always easy and efficient, and in other words expensive. It
can be concluded that, farmers have to sell their limited quantities of produce in nearby markets to avoid
transportation hassles and to save time and money. On the other hand, farias and paikers bulk to lower
transaction costs and maintain business relations with large beparies and arots in Patuakhali, Golachipa and
Amtali. Different types of vehicles can be arranged to transport agricultural commodities at varying rental
rates. The transportation cost from Patuakhali arot to Pabna where mills are situated, is Tk.18,000-20,000
for a 10-12 ton truck based on the road condition, traffic, ferry crossings and political situations. From Boga
and Komlagonj river ports, mustard can also be transported by boat to Munshigonj and Dhaka.

Access to Finance
There are bank branches and NGOs offices inside the polders, along with many B-Kash centres. Through all
of these, cash transactions are possible. In addition, government commercial banks like Krishi bank have an
agriculture loan product with low interest. In reality and due to different practical problems, farmers
generally do not feel encouraged to go for a government loan. Sometimes arots provide credit to
beparies/paikers purchasing mustard. When millers/arotder provide credit to paikers to procure mustard in
the local markets in order to assure a certain supply, such funding in the system has an impact on the prices
in local markets with limited supply, to the benefit of the farmers.

4.10 Business Enabling Environment (BEE) and its Actors

Government Policies/MoA
The government has a policy to provide support to the expansion of mustard cultivation as oilseeds. At
present government has to spend huge foreign currency amounts to import edible oil (soya and palm oil) to
meet the increasing demand for edible oil. There are the subsidies for inputs (seeds, fertiliser), and the
support to extension and research.

As part of government, DAE is providing support by demonstrations to expand the mustard cultivation.
Concerned government agencies (DAE-for extension/practice, BADC-seed/minor irrigation, DAM-market
information/price) might become more effective in encouraging production of mustard if imports are better

Mustard VCA Report 14 February 2017

Blue Gold Program

tuned to supply-demand conditions. The price fluctuations in the market demotivate the farmers while
these seem due to random imports of edible oil as well as mustard. So, import policies and actions may
need to be re-examined.

Government can play a vital role in encouraging the development of additional new varieties which are
feasible to coastal agro-ecological conditions. Government could support the establishment of a commodity
standard (fair and transparent) for different types of agricultural produce. Finally, Government can take
initiatives to ensure that farmers get timely fertiliser deliveries and fair access to appropriate agricultural
loan products, at the set low interest rates.

Seed Certification Agency (SCA)

The Seed Certification Agency is the only legal authority on behalf of government to certify seed quality.
The objective of SCA is to control the quality of seed production and to certify it for marketing. With its aim
to control seed quality, SCA can play a vital role in mustard production. SCA can contribute to its promotion
by guarding on quality seed production and maintaining a desired standards of mustard seeds.

National Seed Board (NSB)

The National Seed Board (NSB) has the responsibility to permit the release of new crop varieties. So, NSB
can contribute to mustard production through providing quick registration of new varieties, which are
suitable for cultivation in the coastal agro-ecological context.

Union Perished/Local Government

In some places where the Union Parishad is the owner of the hat/local bazar the UP also controls the hat
tax/toll. In such cases the UP can make a policy favouring mustard marketing by allowing a lowered tax/toll.
Moreover, as local government the UP can play a vital role in the selling and buying of mustard in all
markets under its jurisdiction by intervening when illegal taxes are demanded. Finally, the UP can play
important role on quality seed marketing in its area by its authority to withdraw trade licenses in cases
where retailers sell adulterated seeds or fertilisers.

Market/Hat Committee
Market committees can support the trading of mustard in their market in various ways. Market committees
can provide security to the distant/big buyers who come from outside with money. Market committees can
also lower or abolish taxes on mustard selling & buying in the market during the initial stages of production
encouragement. Finally, market committees can ensure fair weighing, and can provide protection to the
farmers/buyers from any type of cheating activities.

Mustard VCA Report 15 February 2017

Blue Gold Program

5. Findings, problems and interventions

Summary of findings

In Table-9 a summary is provided for the cultivation of mustard of the findings related to the behavioural
characteristics of farmer actors and market linkages.

Table 9
Findings related to cultivation, farmers and market linkages
Cultivation Farmer actor behaviours Market linkage behaviour characteristics
Land  Late due to T-Aman practices  Tillage services and sowing labour generally
preparation and  Number of tillage passes unclear available in this period.
sowing  Line sowing is labour intensive  PTOS is not equipped for such small seeds
Seed  Little known of recommended varieties and  No or limitedly available and/or timely available
their short duration and yield characteristics seed amongst seed traders
 Farmers seek information sources on a  Few retailers at polder level and private company
rather ad hoc basis retailers more expensive than BADC
 Retailers have ICT access but are unaware of
sources of information
Fertiliser  Not applied or dosage TSP, Urea and MOP  Dealers and retailers refrain from stocking in off-
unclear season production periods
 Have to pay more than fixed prices  Retailers have ICT access but are unaware of
sources of information
Irrigation  Required but depends on fresh water  Water resource management to consider fresh
availability water storage in water bodies
 Low lift pumps are available
Pollination  No apiculture in the area, insufficient other  Sufficient natural bees appear to be present
crops to be commercially feasible
Weeding  Not undertaken, very difficult in a  No other demands in the polder on labour during
broadcasted crop this season
Pest  Over dosage of insecticides  Limited # of retailers with knowledge of mustard
Management  Inadequate knowledge of diseases, diseases and remedial products.
remedial products and IPM  Retailers after own advantage only
Harvesting  Stacking or heaping and sun drying pose  Oil content influenced by harvesting technology
techniques little problems
 Better understanding of quality/price relation
required
Post harvesting  Use of sheet is required to avoid impurities  Available and demonstrated in mung bean
production
Processing  Return product lower due to poor crushing  Sufficient capacity available but no new
efficiency technology at local millers investments and technology improvements
 Horizontal integration, and no interest by
processors in vertical integration (high stock
financing costs)
Marketing  Sufficient local demand for oil and oil cake.  Several faria and paiker available with fair
 Farmers seek market information but have margins
weak buyer network  High transportation costs due to poor
infrastructure

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Blue Gold Program

Cultivation Farmer actor behaviours Market linkage behaviour characteristics

 Volumes too small to bulk and interest distant
market buyers
 Information sources exist but access is
constrained.
Financing  Small acreage for home consumption limits  Middlemen buy cash from farmers
crop funding requirements  Arotder fund the system by providing credit to
 Farmers finance the storage of seeds over their procuring middlemen
the year before crushing
Gender  Mustard so far did not feature in household  Women empowerment comparable to other crops,
involvement decision making home consumption offers opportunity to lower HH
 Mustard cultivation requires additional expenditure
labour input at (post)-harvesting  Labour migration leads to increasing feminisation
of agricultural production

Figure 14 Maturing Mustard Field end of January 2017

Mustard VCA Report 17 February 2017

 Blue Gold Program

5.1 Summary of Key Findings, Constraints faced and Preliminary Intervention Options
Findings Constraints(Problems) Probable Interventions
1  Land preparation and  Poor WRM arrangements at catchment  Workable institutional arrangement at catchment to be established
seed sowing can’t take  Limited area of medium-high land available in polder  Habituate small internal water management practices
place at optimal time  Cultivate long duration T-Aman rice, and do so late as well  Explore and introduce coastal feasible short duration HYV rice varieties
and lead to limited  Two steps harvesting system in rice (straw left standing in the  Increase awareness on modern rice cultivation practices
production acreage field)  Promote cropping system intensity benefits and introduce production planning
2  Farmers (Primary  Mustard is not a conventional crop to Patuakhali farmers  Explore and introduce feasible short duration HYV mustard varieties
producers) have limited  Opportunity of short duration varieties is not recognized by  Horizontal learning on mustard cultivation demonstration
knowledge of mustard farmers  Draft Mustard FFS curriculum and support DAE FFS
cultivation practices  Attention by extension services is limited to demonstrations  Provision for incentive to first mover mustard farmers linked to short duration
rice
 Networking for information is enhanced and ICT promoted to overcome
access constraints
3  Productivity lags on  Lack of knowledge of recommended practices  Improve farmer understanding on crop budget/gross margin of mustard
potential (no intensive  Inadequate quantities or inappropriate inputs used cultivation
production practices)  Insufficient insight in benefits of intensification  Gross margin calculations on demonstrations
 Sub-optimal use of capital (apparently minimizes financial  Introduction on record keeping, risk considerations and farm/ household
risks in crop production cost) decision making
4  Farmers do not use  Lack of farmers’ awareness on modern seeds variety  Stimulate further demonstrations based on cropping system intensity
appropriate seed variety  Insufficient attention of extension services  Promote knowledge of short duration varieties and on germination quality
 Unavailability in seed supply systems through extension services
 Aggregate demand for seed in locality, negotiate and arrange on basis of
increased bargaining power
5  Input suppliers unaware  Poor supply chain of required inputs  Enhance understanding of input suppliers of mustard cultivation (workshops)
and lacking interest due  Farmer demand for inputs off-season and small quantities  Aggregate demand for inputs on the basis of local production and sales plan
to low demand and facilitate collective action
 Networking between farmers and input suppliers and use of mobile phones is
facilitated
6  Irrigation water scarcity  WRM arrangements at catchment level fail  Identify areas feasible to store fresh water with improved water resource
during production  Present water infrastructure only allows limited amount of management (re-excavation of khals and canals)
season, required to fresh water to be stored  Enhance small scale water management activities
boost productivity  Insufficient attention to operation of the infra according to  Workable institutional arrangement at catchment to be established (proper
production planning and to regular maintenance handling of sluices, inlets)
 Organise collective actions on water infrastructure maintenance (removal of
water hyacinth)
7  Opportunities to capture  Still very small volumes being produced  Build farmers network with market actors
more of total market  Inadequate accessing of market information  Strengthen farmer’s hand by mobile phone use for market information
value created  Satisfied with home consumption of oil and oilcake  Integrate faria function when volume is sufficient to justify bulking
 Weak farmers network with buyers  Seek options to lower transportation costs for bulk
 Focus on oil content of quality production
8  Local crushing  Equipment of local crushers dates from more than 10 years  Development of miller entrepreneurship

Mustard VCA Report 18 February 2017

 Blue Gold Program

technology is inefficient ago  Improve technology efficiency of local crusher/miller

in terms of oil production  Technology leaves a lot of oil in the oilcake  Assess feasibility of integrated milling operation by group of farmers
 Millers not aware varieties with high oil content
 Millers do not seek to integrate marketing functions
9  Limitations in the service  Limited attention from extension – research nexus for coastal  Seek awareness among research/extension family for remaining limitations of
providers zone cropping systems available varieties to adopt cropping system
 Limited interest to supply the coastal zone with inputs during  Improve networking with respective dealers, heighten awareness of farmer
‘off-season’ demands and arrange coordinated input purchases
10  Several constraints in  Support policies are not always effective  Advocate improvement in attention to coastal zone cropping systems,
the Business Enabling  Market functions are distorted by varying or illegal fertiliser distribution and supply-demand balancing by oilseeds and edible oil
Environment taxes/levies imports.
 Licensed dealers adulterate inputs without consequences  Advocate appropriate tax regimes and ban illegal actions, and adulteration in
the market system
11  Additional labour input  Additional labour input unlikely to lead to women  Involve women in extension on cultivation practices and market orientation,
requirement from empowerment especially post-harvesting and quality/price relation
women  Cognisance to be taken of the feminisation of agriculture  Stimulate HH-decision making, and record-keeping
 Enhance access to information by ICT
 Encourage ownership over home-consumption transactions

Figure 15: Mustard crop condition 1 February 2017

Mustard VCA Report 19 February 2017

Blue Gold Program

Annex 1. Annexures
1.1 List of consultancy service providers (Research and Extension)
Sl. # Name Designation Institute Mobile no.
1 Dr. Md. Shahidul Islam (Badsha) PSO OFRD, Patuakhali 01716145752
2 Dr. Md. Mostafizur Rahman PSO BARI, (farm in-charge, Lebukhali O712752253
Patuakhali)
3 Md. Abdul Mannan UAO Galachipa, Amtali 01716066265
4 Md. Badrul Alom UAO Amtali, Barguna 01718365612
5 Mr. Sanjib Mredha UAO Patuakhali Sadar 01722096969
*** PSO (Principal Scientific Officer), OFRD = On-Farm Research Division of BARI

1.2 List of Seed Dealers (polder level)

Sl. # Name of Seed dealer Business place Mobile no.
1. Md. Delowar Hossen Molla Badura Bazar 01920061317
2. Md. Al amin Hawlader Badura Bazar 01728395520
3. Md. Zahangir Khan Mudir Hat
4. Md. Eunus Mian Amkhola Bazar 01740549282
5. Md. Mannan Amkhola Bazar 01770565875
6 Ahsan Munir M/s. Master Seed House, Fakirhat bazar
7 MA Jamal M/s. Howlader Store, Sonakhali
8 Majibur Rahman Patuakhali Sadar 01718400140
9 Amal Chandra Mali Patuakhali Sadar 01740927212
10 Uttam Hawlader Patuakhali Sadar 01718920133
11 Tuhin Hawlader Patuakhali Sadar 01718205135
12 Abdul Goni Hawlader Khekuani Bazer
13 Sona Mia Mridha Khekuani Bazer
14 Tajem Mridha Khekuani Bazer
15 Wahab Akan Amtali Bazar 01713959440
16 Habibur Rahman Amtali Bazar 01719971973

1.3 List of Fertilizer and pesticide Dealers (polder level)

Sl. # Name of Dealer Father’s Name/ Enterprise Name of Market Mobile no.

1. Md. Delowar Hossen Molla Md. Abul Kasem Molla Badura Bazar 01920061317
2. Md. Al amin Hawlader Md. Ruhul Amin Hawlader Badura Bazar 01728395520
3. Md. Zahangir Khan Md. Seraj Khan Mudir Hat
4. Md. Samsul Haque Md. Abul Hasem Mudir Hat
5. Md. Eunus Mian Md. Eusuf Sikder Amkhola Bazar 01740549282
6. Md. Taslim Mredha Abdul Sabhan Mredha Amkhola Bazar
7. Md. Monsef Sikder Md. Kadam Ali Sikder Baw Bazar
8. Md. Nasir Md. Siddikur Rahman Baw Bazar
9. Md. Shahjada Sikder Md. Moslem Uddin Amkhola Bazar 01733134734
10 Nizam Uddin Bishmilla Store Mahishkata Bazar 01745139297
11 Abu Sayed M/S Sayed Traders Mahishkata Bazar 01713964981
12 Kabir Hossain Kabir Store Amtali 01920592183
13 Mosharef Hossain Mredha Enterprise Bandhghat 01713954878
14 Manowar Hawlader Mim Store Patuakhali 01729646351
15 Abu Taleb Mredha Enterprise Khaserhat 01749300249

1.4 List of mustard buyers (Farias/Beparies)

Sl. # Name of Dealer Address Mobile no.
1. Md. Alom Badura Bazar 01721479904
2. Md. Nazir Hossain Mudirhat 01759647675
3. Md. Mazibur Bashbunia 01731252578

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Blue Gold Program

4. Abu Taleb Badura Bazar 01721424531

5. Ashab Ali Mredha Kalibari 01724124693
6. Nasir Uddin Amtali 01712138780
7. Md. Eunush Chunakhali 01725173175
8. Mannaf Fakir Charkhali 01727465295
9. Nasir Pada Amrhagachia 01734143558
10 Jasim Uddin Amkhola Bazar 01740583219
11 Jalil Hawlader Badura Bazar 01731252587
12 Shahid Dakshin Chailabunia 01722810751

1.5 List of mustard Arotders

Sl. # Name of Dealer Name of Enterprise Address Mobile no.
1. Nasir Uddin Hawlader M/S Zinia Enterprise Amtali 01712138780
2. Shajahan Amtali 01712703964
3. Tapan das Barguna 01734347374
4. Gautam Barguna 01747500876
5. Rashid Khandaker Khandaker Traders Patuakhali 01727465295
6. Altab Fakir Saiful Rice Agency Fatulla, Patuakhali 01728131545
7. Halim Mian Amtali 01721653779
8. Basir Hawlader Hawlader Enterprise Amtali 01712540490
9. Ruhul Amin Hawlader M/S Amin Traders Patuakhali 01712214356

1.1 List of mustard crushing Mills

SL Name Address Mobile # Remarks
1 Modern Oil Mill Powerhouse road, Patuakhali 01735630724 Local level processor
2 Popular Oil Mill Powerhouse road, Patuakhali 01812472497 Local level processor
3 Nur Oil Mill Powerhouse road, Patuakhali 01729000518 Local level processor
4 Khalifa Oil Mill Sakharia Bazar, Amtoli 01719936182 Local level processor
5 Bhandari Flour Mill Badghat, Patuakhali 01726561947 Local level processor
6 Sikder Flour and Oil Mill Siddik Barhi Stand, Amtali 01716463493 Local level processor
7 Wasim Sarder Hazikhali Bazar, Patuakhali 01729538238 Local level processor
8 Rubel Mridha Khaserhat, Patuakhali 01713952371 Local level processor
9 Ruhul Amin Sarder Khaserhat, Patuakhali 01767417917 Local level processor
10 Hafez Nur Azim Uttar Bazarghona, Patuakhali 01715194453 Local level processor
11 Sahid Talukder Auliapur,Patuakhali 01718607341 Local level processor
12 Basir Kazi Basak Bazar, Patuakhali 01719437441 Local level processor
13 Nasir Hawlader Basak Bazar, Patuakhali 01689554713 Local level processor
14 Zia Mistri Hazikhali Bazar, Patuakhali 01749338613 Local level processor

Mustard VCA Report 1-2 February 2017