Agrarian Transition and Livelihoods of the Rural Poor: Agricultural Credit Market

Agricultural credit is crucial for realizing the potential gain from agriculture as a profitable
activity. Ensuring access to credit to small farmers who are operating at the subsistence level
is a substantive issue. Small farmers in Bangladesh do not have sufficient assets to carry on
with their production expenditure. They depend on agricultural credit from institutional and
non-institutional sources to meet the various expenses of agricultural productivity.

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Agricultural Input Market

Agrarian Transition and Livelihoods of the Rural Poor
It is impossible to ensure sustainable development of the national economy without resilient
growth of the rural economy at the micro level. Crucial to the progress of the rural economy
is the development of the agricultural sector. The agricultural sector development faces a
massive obstacle due to the resource constraint of the poor rural farmers. The problems were
compounded by the liberalization of the agricultural input market as prescribed by the IFIs.
Allocation of resources to the agricultural sector has declined in the past few years. This
double blow led to declining profit in the crop sector.

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Agricultural Product Market

Agrarian Transition and Livelihoods of the Rural Poor
Agricultural marketing is an essential tool for the uninterrupted supply of products to the consumers. Farmers in the rural areas can acheive potential benefit from their produce if they have access to the markets in which they sell their produce. Market oriented activities in the agricultural sector of Bangladesh have expanded due to the increased diversity of rice crop and expansion of microcredit networks. But there are still various inefficiencies that exist in the marketing of products for the farmers in the rural areas.

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Agriculture Land Market

AGRARIAN TRANSITION AND LIVELIHOODS OF THE RURAL POOR
For most of rural households involved in agriculture in Bangladesh, land is a very important asset which is a source of regular income, a security against famine, and the foundation of livelihood. Therefore, in rural area the traditional value system puts a high premium on the ownership of land. A therefore question arises on how the capacity of the prevailing situation in land market would help to eradicate poverty and inequality in rural Bangladesh and also generate infrastructural development.

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