Strengthening Farmers’ Livelihoods with Crop Diversity: A Success Story from Bangladesh

Southern Bangladesh is home to more than 30 million people, most of them small farmers.

As one of the world’s leading rice-producing countries, with a production forecast of 34.51 million tons for 2016-2017, nearly 80 percent of farmers here depend on rice for their livelihoods. This means that if the region receives too much or too little or rain – or if pests or diseases damage the rice crop – farmers face destitution. Even in years of abundant harvest, farmers often receive unreasonably low prices for their produce, trapping their families in poverty.

Partex Agro's inclusive business initiative offers farmers specialized training on modern cultivation techniques to maximize their yields.

While agriculture is the largest source of employment in Bangladesh, it is constrained by a decrease in arable land, the impacts of climate change, a lack of quality seeds and a lack of access to information about modern production methods. For example, after the rice harvest each November, most farmers keep their lands idle until the following January. During this time, farmers could be cultivating groundnuts and pulses to supply Bangladesh’s growing market with these products.

In 2016, agricultural input supplier Partex Agro Ltd. joined Business Call to Action (BCtA) with a commitment to improve the lives and livelihoods of 5,000 low-income communities by integrating them into its agricultural value chain as pulse and groundnut seed growers, suppliers and distributors. Its inclusive business initiative offers farmers specialized training on modern cultivation techniques to maximize their yields.

A subsidiary of major retailer Partex Star Group, Partex Agro focuses on developing new crop varieties that are high yielding, adapted to changing climates and resistant to pests and diseases. The initiative began with a detailed market study of groundnut, lentil and mung bean cultivation. Based on this study, the company designed a multi-step plan for promoting the cultivation of these lucrative crops and marketing high-quality seeds.

In order to maximize its impact, Partex Agro first developed its internal capacity by recruiting additional staff for production, marketing and sales, and providing them with training and development opportunities. The company then began intensive research and development, collecting seeds from domestic and foreign sources, and assessing their performance. The seeds that performed best in these trials were multiplied by contract growers and sold to small farmers at affordable prices.

Since most Bangladeshi farmers are not familiar with modern cultivation techniques for pulses and groundnuts – and are therefore reluctant to grow anything but rice – the company engages them through training sessions, demonstrations, mobile field units, and agricultural festivals. By combining its seeds with modern farming methods, the company calculates that farmers can increase their incomes by at least USD 0.50 per day – allowing them to raise their living standards and access important services such as education and health care.

Since seed dealers and retailers are also critical links in the company’s value chain, Partex Agro has invested in enriching their knowledge of its products as well. Post-sale, the company’s marketing and sales representatives visit farmers’ fields to monitor the growth of their crops, providing tailored advice on soil health, plant growth and protection from pests and diseases. There is even a dedicated number for them to obtain information and assistance in improving their harvests.

The most visible impact of Partex Agro’s inclusive initiative has been its engagement with farmers – especially women – who previously had no access to information about techniques for raising lucrative crops like pulses and groundnut. Thanks to its training, these farmers now utilize cultivation processes such the line-sowing system rather than hand scattering. With their new knowledge, farmers are not only increasing their incomes by cultivating a diverse range of crops, but enriching the soil for greater rice production.

The 300 percent increase in the company’s farmer reach as a result of this initiative has fueled a corresponding surge in pulse and groundnut cultivation in southern Bangladesh. And since these crops are economically more beneficial to farmers than rice, smallholders are reaping significant economic benefits.

To ensure that farmers receive fair prices for their produce, Partex Agro has begun linking them with industrial buyers of groundnuts and pulses. Danish Food Limited, a sister company, has agreed to bulk buy farmers’ produce at competitive prices. By focusing on all aspects of the value chain for these crops, the company has established a stable market – and reliable incomes – for farmers, seed growers, dealers, retailers and their families.