Production and Price Relationship of Ginger (<i>Zingiber officinale</i>) in Bangladesh: A Distributed Lag Model

Abstract

The study aimed at analyzing the fluctuation, and production-price relationship of ginger in Bangladesh. Nineteen years (1975 to 2013) time series data of area, production and prices of ginger, collected from Bangladesh Bureau of Statistics were used to analyze the simplest method for fluctuation, and the Koyck model of distributed lag. The extent of annual price fluctuation of ginger ranged between -50 to 63 percent, while the fluctuation of area, production and yield ranged between-5 to 13, -17 to 22 and -20 to 11 percent, respectively. The study revealed that ginger production in Bangladesh had been influenced by the average price lag value formed in the market. The most striking result of the study was that the time required to get an effect on ginger production for the changes of ginger prices in Bangladesh was 19.83 years. This result shows that the farmers are very enthusiastic for growing ginger, the widely grown major spice crop. The correlation/regression coefficients indicated that the changes in lag values of the prices had a positive influence on production. It may be recommended that to keep the ginger price fluctuation under control, sustainable ginger farming and establishment of an efficient marketing organization is necessary.

The Agriculturists 2017; 15(1) 01-09