Impact of Vegetable Business on Income Consumption and Savings

The Impact of Vegetable Business on Income, Consumption and Savings of Local Investor

Recently the impact of veritable growth are increasing in Bangladesh. Most of the business man are lower level people and their income savings consumption comparatively very lowest in the market. According to the market research the main player in this market are arothdar, bapari they control the market and they are the gainer. at present, in Bangladesh’s agricultural marketing system is often accused in the popular press of being inefficient. In the case of vegetables, aratdars and beparis have been found to be critical players in the market. Their margin was between 17-18% of the retail value and their return on working capital was found to be exceptionally high, although it is possible that the high margins are due to high marketing costs, which are in turn due, for example, to poor infrastructure. Known the increased importance of vegetables in nutritionally balanced diets, it will be important to have efficient marketing systems that reduce risk and allow higher prices for farmers and lower prices for consumers. Indeed, the National Food Policy Plan of Action (as well as the Bangladesh Country Investment Plan place stress on strengthening the food marketing system and improving value chains as a measure for improving food security and increasing incomes among the poor. Households face substantial risks in most of the developing countries. Living strategies signify variation to uncertainty with respect to income generation and subsistence consumption. Highly unpredictable rain, commodity price fluctuations, poorly functioning or missing markets for inputs and outputs, unexpected changes in price policies, unstable governments and armed conflicts are important sources of risks. Zimbabwe is a good example of adaptation to such risks. The higher borderline propensity to save out of temporary income by households in this period suggests that they used savings to smooth consumption. The fact that proclivities to consume out of perpetual income are statistically less than one, and savings out it are generally greater than zero indicates that a polar version of the permanent income hypothesis cannot be accepted. Post drought and structural adjustment households, however, consumed the majority of both permanent and transitory incomes, and depended heavily on remittances. Their saving behavior had been adversely affected by recurring drought and unfavorable economic changes. Higher income variability is associated with reduced consumption indicating precautionary behavior on the part of pre-drought and per-structural change households. Household consumption and savings post-drought and structural change did not respond well to income variability.

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