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The Impact of Privatisation on Entrepreneurial Development in Bangladesh Agriculture

Md. Abul Quasem

 

Abstract

This paper is based on the survey findings of the study “Impact of New System of Distribution of Fertilizer and Irrigation Machines in Bangladesh” conducted in 1982/83. Input entrepreneurs (fertilizer wholesalers and retailers and irrigation equipment owners) are mostly large land owners. Quite a few of them, specially fertilizer dealers, are simultaneously involved in several other commodity trades. With privatisation, the number of retailers increased, whereas wholesaling has become more concentrated. initial response of irrigation entrepreneurs in purchasing equipment is positive but their loan repayment performance is poor. Irrigation coverage by an equipment is low except STWs. Water charges by individual/group owners are found to be higher primarily because of quicker recovery of capital cost. The paper also examines the examines the investment pattern and comes to the conclusion that the existing pattern is not congenial for agricultural development.

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