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Thesis Issued 2026-09-07 EN

An Agribusiness Study on Small-Scale Medicinal and Aromatic Plant Enterprises in Selected Areas in Bangladesh

Author: Mohammad Yousuf Ali

Abstract

In Bangladesh, medicinal products are used as ailments of several diseases like cough-cold, allergy, fever, worm trouble, rheumatic pain, sexual diseases, headache, acidity, dysentery, minor injury, etc. while agar products are used by the people of Middle-East Countries mainly as perfume and scent. Commercial cultivation of Medicinal and Aromatic Plants (MAPs) is still in a rudimentary stage. Moreover, MAP sector started to face the most serious problem of destruction of its species. In these circumstances, the commercial cultivation of MAPs should be accelerated for sustaining this sector. The specific objectives of the study are: identifying different entrepreneurs/actors, activities and supply chain; measuring profitability;determining value addition to products; and analyzing contributions and problems of MAP enterprises. Both primary and secondary data were used in this study. Ten commercially medicinal plant (MP) cultivating 1 union under Natore district and 6 commercially aromatic plant (AP) cultivating unions of Moulvibazar district were selected as the study areas. Stratified random sampling technique and optimum allocation method were followed for selecting the sample units. Nine types of MP entrepreneur groups, such as plant producer, seed supplier, seedling grower, wholesale-cum-retailer, processor, hoarder, hawker/faria, hakim/kobiraz and Ghritokumari supplier were selected for MP enterprise. Ten MPs i.e. Amrul, Basok, Ghritokumari, Hostipolash, Kalomegh, Misridana, Oshwagandha, Shotomul, Shimulmul and Tulsi were studied, whereas for AP enterprise, four entrepreneur groups i.e. plant producer, sapling grower, processor and exporter and only agar plant were considered for the investigation. Overall all MAP traders are involved in purchase and sale of MАР products, but only the MP processors, hoarders and hakims/kobirazs perform processing, hoarding and treatment practice of MP products, respectively. On the other hand, AP processors are involved in processing of all agar products and exporters export mainly same products. In home and abroad, all the traders of MAP products operate their business mainly in either own residences or in hired sales points. Usually MP products are sold in green, dry and dust forms, while agar oil is sold as white, black, natural and mix forms. Color, scent, etc. are usually used for judging quality of agar oil and wood. Usually bamboo basket, plastic bag, polythene bag, plastic dram, plastic pot, glass pot, etc. are used asa packets for MP products, while glass bottle and jar, aluminum and plastic bottle are used for agar oil, and polythene bags and plastics bags are used for agar wood and agar chips, respectively. In domestic level, motor operating van, by-cycle, head-load and hand-load, pick-up, truck, etc. are usually mode of local and outside transports for MAP products. Moreover, agar oil and wood are always exported by aero-plane and cargo is used for exporting agar chips. Prices of all MPs and AP products are fixed mainly in open bargaining and payment is also made generally in cash. Export markets of agar products are mainly situated in Dubai, Saudi Arabia, Qatar, Kuwait, Oman, Yemen, Bahrain, India, China, Hong Kong, UK, Japan and Thailand. All the MAP enterprises were found profitable, employment generating and income earning source with foreign exchange. In production of MPs and MP seedling, Shimulmul and Hostipolash were the highest profitable enterprises, respectively. Among all MP enterprises, Hakim/kobiraz earned the highest profit as per investment of capital. The Benefitcost (BCR) ratios for agar plant production and sapling growing were 4.40 and 1.42, respectively, while they stood at 1.18 and 1.08 for processing and export business, respectively. Value addition to MP seed selling was 37 to 90 percent of purchase price, while it was 11 to 106, 36 to194, 28 to 105, 40 to238 and 75 to 946 percent for MP wholesaler-cum-retailer, processer, hoarder, hawker/faria and hakim/kobiraz, respectively. Ghritokumari suppliers added value of 54 percent. Again, for MP processors added values were 390 to 1054%, 510 to 1518% and 89 to 261%, respectively. On the other hand, value addition to agar plant by the AP processors was 150% and for AP exports enterprise value additions to agar oil and agar wood was 10 to 38, and 69%, respectively. Value additions to piece chips and dust chips were 1810 and 1110%, respectively. Interdependent, interlinked, non-intervention and smooth supply/value chains consisted of 9 and 4 entrepreneurs/actors were found for MP and AP enterprises, respectively. Several major problems of MAP sector identified by the respondent entrepreneurs are: absent of HYVs, improved technology and method, training, certificate of hawker/faria business and hakim/kobiraz practice, effective MAP entrepreneurs' association, and bar code (HSC); unknown and uncontrolled pests and diseases; lack of electricity supply, extension services, contact and linkage with markets and buyers, bank loan, skilled laborers and workers; unstable and uncertainty in demand and price of MAP products; advance sale of immature agar plants at lower prices; harassment in collecting NOC, TP and CITES, harvesting and transporting agar plants; charging gas and electricity bills at commercial rates; adulteration of MAP products, etc. The respondents also suggested several measures to overcome the problems faced by them. The recommendations put forward are as follows: an integrated development program should be implemented by the concerned ministries for overall upgrading and sustaining MAP sector; improved varieties, methods and techniques should be developed and disseminated; appropriate training needs to be imparted to the concern stakeholders; necessary supports are to be provided for making and sustaining market and creating linkage with buyers in home and abroad; infrastructures, such as market information and sales centers, herbal treatment education and training institutes, new research division on MAP etc. should be set up; some necessary legal support and documents should be put in place. GOs and NGOs should provide necessary supports for organizing and running effective MP and AP entrepreneurs' associations for all the entrepreneur groups in Bangladesh.