Translation

Embassy of the Federal Republic of Germany in Dhaka

11 Madani Avenue, Baridhara
Dhaka-1212
Bangladesh

Application for financial support in implementing a micro-project

1) Applicant:
Name: Manab Unnayan Kendra MUK
Address: Hat Road, Amjhupi, Meherpur, Bangladesh.
Telephone: 0173323299
Fax: 0791-63098
Email: muk1995@gmail.com

2) Information about the applicant

(Legal form, year of establishment, number of members, financial standing – written proof
such as registration documentation, annual financial statement, etc. to be submitted):

Date of Registration Registration number Registered institution

27.8.1997 Kus/223
Directorate of Social Service
25.11.2004, FDR/1985 NGO Affairs Bureau
Renew: 25.11.2014
28.01.1999 JUBO/Meher/12 Directorate of Youth
Development
27.01.2009 S-8744(765) Societies Registration Act xxx
1 of 1860
11/02/2013 04615-00668-00686 Microcredit Regulatory
Authority
2012 continue BD-2012-AUR-606942937 PADOR (European Union)
2017 continue 731571258 D-U-N-S (USA)

Financial Statement:
As at June 30, 2019

Property & Assets Note 30-Jun-19 30-Jun-18

Non-current Assets
Fixed Assets at cost 6 6,057,873 5,729,527
Loan to Members 7 18,661,529 17,278,270
Total Non-Current Assets 24,719,402 23,007,797
Current Assets
Reserved Fund 8 1,264,414 1,264,414
Loan to Staff 9 776,362 776,362
Advance to School Rent 10 109,000 109,000
Suspend Account 11 973,508 -

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 Security Deposit to DWA 12 100,000 -
Lease of Land 13 30,000 30,000
Cash & Bank Balance 14 1,877,512 1,309,863
Total Current Assets 5,130,796 3,489,639
Total Properties 29,850,198 26,497,436

Capital Fund & Liabilities Note 30-Jun-19 30-Jun-18

Capital Fund
Cumulative Surplus 15 12,442,288 11,560,408
Total Capital Fund 12,442,288 11,560,408
Current Liabilities
Loan from Others 16 4,497,893 4,210,893
Advance (Mediation Money) 17 705,350 676,950
Member Savings Deposited 18 6,146,582 4,810,815
Welfare Fund 19 1,435,217 1,218,857
Staff Security Fund 20 1,203,000 1,037,000
Provision (Savings) 21 209,163 170,883
Loan Loss Provision (LLP) 22 843,849 618,898
Accumulated Depreciation 23 2,366,856 2,192,732
Total Current Liabilities 17,407,910 14,937,028
Total Capital Fund & Liabilities 29,850,198 26,497,436

The accompanying notes from an integral part of these financial statements.

3) The applicant is exempt from the following taxes:

Charitable organizations (A charitable organization or charity is a non-profit
organization whose primary objectives are philanthropy and social well-being) from property
taxes(A property tax or millage rate is an ad valorem tax on the value of a property).

4) Responsible contact persons (name, address, contact details):

1. Asaduzzaman Selim, Executive Director, Manab Unnayan Kendra, MUK, Cell-01733-223299,

e-mail- muk1995@gmail.com
2. MD Robiul Islam, Coordinator, Manab Unnayan Kendra, MUK, Cell-01733-223209,
E-mail- sunislam71@gmail.com

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5) Project title: Creating Horizontal public opinion in determining the standard price of
agricultural products in Meherpur District, Bangladesh.

(a) Short description of the project (please provide full documentation if possible):
SDG Goal -2. End hunger, achieve food security and improved nutrition and promote
sustainable agriculture
Increase investment, including through enhanced international cooperation, in rural
infrastructure, agricultural research and extension services, technology development and plant
and livestock gene banks in order to enhance agricultural productive capacity in developing
countries, in particular least developed countries
SDG Goal - 11. Make cities and human settlements inclusive, safe, resilient and sustainable
Support positive economic, social and environmental links between urban, peri-urban and rural
areas by strengthening national and regional development planning.
[

Agriculture remains the most important sector of Bangladeshi economy, contributing 19.6 % to
the national GDP and providing employment for 63 % of the population. According to the World
Bank, the total arable land in Bangladesh is 61.2 % of the total land area (down from 68.3 % in
1980).
Inadequate credit support to farmers is about 90% farmers of Bangladesh are small and
marginal (below 2.5 acres). They are very often constrained by finance and thus cannot afford
high cost for management. They have very limited access to institutional credit because of
collateral requirement. At present, only 27% of farmers receive institutional credit (BBS, 2007).
The credit amount again is quite inadequate and not advanced in time. They are also not eligible
for microcredit of NGOs that deal mainly with landless farmers.
Unfair price of agricultural produces Productive farmers of Bangladesh mainly belong to small
and marginal categories. These farmers do not have either Farmer’s Association or Farmer’s
Co-operative to bargain for fair prices of their produces. They are thus forced to sell their
produces at low prices to intermediaries. Since the farmers are often unable to meet
procurement requirements (14% moisture content, absence of foreign materials in seeds, etc.) of
the government, they cannot sell their produces at the price fixed by the government.
Vegetable supply chain in Bangladesh17 6464 16% 55% 9% 5% 6% 24% 1% 64% 55% 9% 5%
85% 4% Source: (1990) Perishable food supply chain constraints in Bangladesh.
Price of vegetables the price of vegetables in retail markets is negotiated through bargaining, the
main indicators being species, quality, freshness, size and weight, and gaps in demand and
supply. The presence of intermediaries observed at different stages in the marketing channel is
due to lack of government control over trade (2018). These intermediaries have the opportunity
to exploit both farmers and consumers without adding much value to the products. This makes
the farmers vulnerable when bargaining with market actors who have better capital endowments,
a situation further aggravated by the lack of transparency in the price formation process and
inadequate postharvest infrastructure facilities
Common constraints in the vegetable sector a number of studies report constraints in the
vegetable sector, including technical, social, economic and environmental constraints
Common constraints in the vegetable sector Constraint Element Technical  Low input farming
systems  Inadequate technical knowledge on scientific farming  Poor soil quality  Poor quality
of inputs Social Small and scattered land  Theft of vegetables  Friction between rich and poor
farmers Economic  High production costs  Lack of financial support  Low market price of

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vegetables  Lack of transparency in the price formation process  Inadequate marketing
facilities  Inequalities in market information and  Inadequate post-harvest infrastructure
facilities Environmental  Unplanned conversion of rice fields to vegetables farms  Impact of
climate change (flood, drought)  Impact of excessive use of chemicals and fertiliser Some of
these constraints are elaborated below.
Postharvest handling:- Postharvest handling is very important for the marketing of any
perishable good, as the quality of the product at the point of sale depends on this. However, no
standard for handling and grading horticultural products has been developed in Bangladesh, and
this is urgently needed for both domestic and export markets (2018). For example, because of
the lack of a standard grade and the resultant poor quality of produce, potential agricultural
products (such as potato, mango and banana) from Bangladesh cannot be exported to
mainstream global markets. Instead, export is limited to ethnic markets such as those catering
for the Bangladeshi diaspora. Standard packaging is also needed to facilitate the handling and
marketing of vegetables. For example, potato growers generally use gunny sacks of 80-84 kg
capacity to package table potatoes, where as cold store owners and traders are interested in
using 40-50 kg capacity net bags which are easier to handle and which would at the same time
easily comply with workers’ health and safety regulations (2018). In Bangladesh, vegetable
storage facilities are inadequate, with an absence of low temperature storage facilities for most
fruits and vegetables, except potatoes.
More attention is needed for postharvest technologies required to prolong the shelf life of fruit
and vegetables (such as modified atmosphere storage, heat treatments, 15In recent years,
reasonable progress has been made in storage suitable for potatoes all over the country. There
are now around 393 public and private cold storage units, which have approximately 4 million
MT capacities, against a demand of 82.05 million MT (2018). 37 recommended chemical dips,
and ethylene scavengers). Route to market16 Efficient marketing is a significant factor in the
reduction of a) postharvest loss (which can occur during washing, sorting, grading, packaging,
transportation and storage), and b)risk and uncertainty in terms of the timely delivery of quality,
safe produce to the consumer at reasonable prices. An inefficient marketing system reduces
demand from consumers and participation by farmers, the latter facing significant challenges to
participation in the growing markets for high value nutritious crops, including vegetables and
fruit. High marketing costs often stem from poor transportation networks and lack of market
information, and sometimes from the lack of competitiveness in the market. Marketing channels
and market actors vary widely with the types of produce and production locations.
Above constrains have been effecting on the local agricultural product market price and
entrepreneur level has been suffering in the long run.

b) Development-policy objective of the project:

 Civil society involvement of the journey & develop cooperative marketing system
Engage Policy maker in the journey in favour of their rights and ensure regular monitoring of
agricultural products market
 Raise awareness at the elementary level through farmer rallies, agricultural product fairs,
field days and lively plots and products production on demand

1. What is the current situation prior to possibly receiving funding?

a) Lack of peasant-friendly organizations & brokers rivalry
b) The capital market is under controlled by the said syndicate and product warehouse is not
available in the arena.

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 Mismanagement of government Agriculture department and local market is not farmer-friendly
environment exist.
At present there are five intermediaries in the major distribution channel at local markets
such as:
Faria is small trader who deals in products within three or four local markets and handles a small
volume of products. A Faria purchases products from farmers and sells them to either a Bepari
or direct to consumers. They are usually landless labourers or small farmers with no full-time
work
Bepari is a professional trader who purchases agricultural products from farmers or Farias in the
local market or village level. This group handles a larger volume of products then Farias. Beparis
sell their products to Arothdars.
Arothdar- an Arothdar serves as a fixed commission agent with a fixed establishment. They
operate between the Bepari and retailers, charging a fixed commission for providing storage
facilities.
Retailer- Retailers are the last link of marketing channel. They purchase products from Beparis
through the Arothdars and sell them direct to consumers.
Aforementioned channel always plays a role of leech character to local peasant. Because the
local agricultural product market is out of their reach as well as they have no collective
bargaining agent (CBA) in the arena.
2. What short comings does this measure seek to address?
# Marginal peasant will be organized and augmenting cooperative farming
# Alternative market formation (create indigenous product out let)
# Increase coordination at local product level

3. What specific objectives are to be achieved?

a) Establish standard agricultural product market in the secondary stage. The organization will
play an important role in getting the right price for the small scale product level.
b) Ensure the representation of marginalized communities in Market Management Committee
c) Service deliver organization (GO, NGO & CS) and service receiver proper coordination will be
increased.
4. With what measures and in what time frame are these objectives to be achieved?
Measurement of time frame aspect of objectives achievement

S Objectives of the project Achievements( Measurement Time Frame

aspect of Objectives) Q-1 Q-2 Q-3 Q-4
/
L
01 Civil society involvement of Increase of standard agricultural √ √ √ √
the journey & develop production in the primary stage. The
cooperative marketing organization will play an important role
system in getting the right price for the product.
02 Engage Policy maker in The participation of marginalized √ √ √ √
favour of their rights and people is increasing In Market
maintain regular monitoring Management Committee
of agricultural products
market

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03 Raise awareness at the Service deliver organization (GO, NGO √ √ √ √
elementary level through & CS) and service receiver proper
farmer rallies, agricultural coordination will be increased.
product fairs, field days and
lively plots and products
production on demand

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6) (a) Finance plan enclosed?  ☐√ yes ☐ no
(b) Is overall finance guaranteed? ☐√ yes ☐ no
7) (a) Total amount applied for (in local currency): 10, 50,000/-
(b) Own resources and any grants from third parties:
S/L Own resources Grants from third parties Total Grant
1. 1,50,000/- 9,00,000/- 10,50,000/-

(c) Total project expenditure: 10, 50,000/-

(d) Other contributions from applicant towards project implementation
(e.g. work, land or buildings provided): Personnel-03, Office-01 & vehicle -02 Motorcycle
e) Probable follow-up costs: 2,50,000/-
f) Follow-up costs can be financed by the applicant or a third party: 2,50,000/-
☐√ yes ☐ no
8) Work on the project ☐ has not yet begun.
☐√ began on .
Date when project is scheduled to start: 01 January- 2020
[
Date when project is scheduled to finish: 31 December-2020
9) Have you already applied for or received any other grants for this project?
☐ yes ☐ √ no
If yes, how much and from what institution?
10) Has the applicant already received financial support from a public body in the Federal
Republic of Germany for other projects?
☐ yes ☐ √ no
If yes, please provide details
(project title, location, date, name of public body providing grant):

(Place, date)

1st signature 2nd signature

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