CHAPTER - ONE
1.1 INTRODUCTION
The crop sector is of strategic importance to Bangladesh, as in most other low-income countries. It is the source of staple food for 130 million people and the major means of livelihood of 13 million farm households in the country. The impact of paddy market on overall standard of living is significant. So, the price of paddy should be stabilized. But ironically, since independence, the price of paddy is increasing at a high rate. Seasonal fluctuation is one of the reasons for the elasticity of the price of paddy. Farmers often bear their production cost of paddy in credit. So, in the harvesting season farmers sell the paddy with comparatively lower price for the payment of credit. More over natural calamity, instability of international fuel market, fertilizer and electricity crisis are also very important causes in the raise of the price of paddy.