Groundnut is an important cash crop in several districts of Bangladesh, including Bhola, Laxmipur, and Noakhali. While productivity has increased in some areas, it has declined in others and overall remains below benchmarks. Future strategies aim to increase small farmers' groundnut yields and incomes through improved access to quality seeds, training on production techniques, and linkages to processors and larger markets. Specific activities include demonstrations, market visits, and facilitating collective marketing groups to sell to distant buyers. The expected outcomes are increased productivity of 2kg per decimal of land, higher selling prices of 2 Taka/kg, and total additional income of over 15 million Taka for 950 farmers.

1. Sub sector: Groundnut
1. Situation:
Ground nut is one of the cash crop in the project areas particularly in Bhola, Laxmipur and Noakhlai
districts. It is cultivated in 45159 hac of land (2008-09). From the study we found that productivity
of ground nut has been increasing steadily in Barisal (1.74 ton/hac), Patuakhali and Noakhali
districts while it has tended to decline in Bhola and Lakhshmipur (1.40 ton/hac). But interestingly
even though productivity is good in Barisal, price per ton is the lowest in Barisal and highest in
Noakhali. Though groundnut production is decreasing due to increase in cultivation of watermelon
in Golachipa, Boro in Tajumuddin and Soybean in Ramgati, Noakhali Sadar and Subornochar but yet
farmer growing this crop to reduces risk of crop failure. We know that the bench mark of
productivity is 2.47 mt/hac but the av. productivity in the project areas is 1.54 mt/hac. So there is
scope to increase the productivity as well as income. At presents av profitability is Tk 29410/hac
It is also noticed that food processing companies prefer small seeded ground nut instead of larger
seeded. Henceforth, promotion and availability of small seeded varieties will increase price at the farm
gate for ground nuts. Moreover, farmers are not producing 3 seeded varieties which could highly
increase productivity for the farmers. Properly cleaned, graded and dried ground nuts are sold at TK 975
per mound while sandy, ungraded and wet ground nuts are sold for TK 900 per mound. So it has
potential for increasing the income of the char small farmers.
2. Objectives for working in the sub sector:
• Increase yield
• Improve inoculums and seed distribution channel
• Farmer’ income
3. What has been done and impact so far:
The RED team facilitated the following activities with the groundnut value chain actors, so that farmer
can get access to input market, increase land productivity and finally income:
Activities # of events # of framer attended
Preseason planning workshop 3 100
Informal meeting with producers 2 55
Till to date the progress is not significant.
4. Future strategy for reaching the target beneficiaries (High importance)
Farmer Upazila Land coverage Yield Selling price
950 Noakhali: Suborna char, Hatia
Bhola: Charfeson
170 hectors increase yield 2 kg
per decimal
Increase selling price
2 Tk/kg

2. It is expected that each farmer will cultivate groundnut in 40 decimal land, and through the
interventions the additional income will Tk. 1596000 (Av. income increase is Tk 42/ dec, total land
coverage 154 hectors/38000 dec, increase productivity 2 kg/dec, and increase selling price is Tk 1-2/kg).
Specific activities to support the strategies:
• Provide direct assistance to the soybean producers (training, linkages, demonstrations, market
visit)
• Linking with BARI, BINA and DAE and facilitate demonstration to improve knowledge on
appropriate use of inoculums for increased yield.
• Facilitate linkage with BADC, and local seed sellers for availability of quality seed
• Facilitate collection point or group marketing for aggregation of groundnut and sold to the
distant big buyers
5. Scale up strategy (secondary importance)
• Contract farming through big buyers or processors
6. Constraints matrix:
Areas Constraints Interventions
Input market Farmers lack of access to quality HYV
seeds
Access to quality HYV seeds
Farm
production
Farmers lack of knowledge about more
productive cultivation techniques
Improve technical knowledge of using new
technologies
Output market Lack of access to higher market • Link farmers’ groups with the processor
through local agents
• Access to markets by forming groundnut
producer group
Main intervention areas are availability of quality seed, facilitated primary processing and market linkages.
7. Activity plan:
Activity Sub activity Total Year wise activity distribution Respon
sibility
Year 1 Year 2
Ba Bh Pa No Ba Bh Pa No
Primary focus:
1.Availability of
and access to
quality seed
and
inoculums
Seed producer training and business plan 2 1 1
Linkage workshop with seed seller, seed
producer and farmer for quality seed
8 2 2 2 2
Promotional activities (poster, signboard,
miking, gathering)
4 1 1 1 1
3.Improve
technical
knowledge
Organize training for farmer on production
technology
20 6 6 4 4 Field
Linkage meeting between farmer, input sellers
(seed & Inoculums) & traders
12 3 3 3 3
Demonstration followed by FFD 10 3 3 2 2
Marketing visit 4 1 1 1 1
4.Marketing Organize training on processing technology 2 1 1 Field

3. and
processing
and business plan
Linkage meeting among farmer, processors
and financial organization
4 1 1 1 1
Linkage workshop between farmer and big
buyers
16 4 4 4 4
Secondary
focus:
5.Facilitate
contact
farming
Identify big buyer at national level Dhaka
Linkage meeting for facilitated contact farming 4 1 1 1 1
Organize training for farmer to understand the
contract farming terms
4 1 1 1 1
8. Activity Budget:
Activity Cost/b
atch
Part/
batch
Y1 (Jan- Dec 2011) Y2 (Jan-Dec 2012) Total
batch
Total cost
batch T. part T. cost batch T. part T. cost
Marketing training 23,000 20 16 320 368,000 12 240 276,000 28 644,000
Linkage workshop 4,575 25 12 300 54,900 12 300 54,900 24 109,800
Marketing visit 33,000 15 2 30 66,000 2 30 66,000 4 132,000
Demonstration & FFD 2,500 100 6 600 15,000 4 400 10,000 10 25,000
Preseason planning
meeting
500 30 10 300 5,000 10 300 5,000 20 10,000
Promotional activities 20,000 2 40,000 2 40,000 4 80,000
Impact study 25,000 1 25,000 1 25,000 2 50,000
573,900 476,900 1,050,800
9. Monitoring Indicators:
• # of farmers directly involved with project
• Land area under improved cultivation
• Increase yield
• Name of the improve/new technology and # of participants using those technologies
• Enter in to the new markets
• Reduced cost (production cost, postharvest losses, carrying cost etc)
• Increase product selling prices
• Increase income