Dynamics of Betel Leaf Production in Bangladesh: Trends, Challenges, and Market Integration

Abstract

Betel leaf (Piper betel) is an important commercial crop in Bangladesh for local consume as well as for the export market. This research examines the pattern, associations and profitability of betel leaf production on an updated basis with a quantitative research design and secondary data sourced from the Bangladesh Bureau of Statistics. To account for the cyclical variation of production and prices, the Cobweb Theory of economic sequence was used as a frame work. The data were analyzed using descriptive statistics, trend analysis, correlation, and regression. The findings indicate that the production and cultivation area of betel leaf are cyclical patterned, following the Cobweb theory, with an increase of production in a certain time, then decreased price and then the subsequent reduction of production. Relations between production and wholesale price presented a strong negative significant correlation, thus, as production increased, wholesale price decreased, though farmers profitability depended more on increased production. The regression analysis showed that there was no strong relation between profitability, production, and crop area. Regional analysis indicated differences in cultivation and production trends between divisions. The results indicate that betel leaf growers face challenges created by price increases, excessive supply, under-demand, and market and production uncertainties brought by natural disasters, pests and instability/carnage in market. The provision of access to market, stabilize price and regional support to farmers could reduce the uncertainties affecting the betel leaf industry in Bangladesh and provide pathways for growth.