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Economics of Modern Rice Cultivation in Different Rice Growing Environments in Bangladesh

M. S. A. Azad
Agricultural Economics Division, Bangladesh Rice Research Institute, Gazipur, Bangladesh

B. A. A. Mustafi
Agricultural Economics Division, Bangladesh Rice Research Institute, Gazipur, Bangladesh

Abstract/ Executive Summary:

The study based on farm level survey data depicted economic gain from modern rice varieties in different seasons and ecosystems in Bangladesh. Per hectare cost of MV Boro production was Tk 27739, which was about 54 and 70% higher than those of MV Aman and MV Aus, respectively. Besides, higher profit margin was obtained from MV Aman compared to the other two seasons. On the other hand, production cost was found higher for the favorable ecosystem and lower for the deep water ecosystem. Greater profit margin from rice cultivation was obtained from the favorable ecosystem because of higher productivity. Therefore, farmers may be given some inputs subsidy particularly, on irrigation and chemical fertilizer so that they can gain equitable profit margin from modern rice cultivation in every season and ecosystem.

Keywords: Modem rice variety, Ecosystems, Economic benefit, Profit margin

Location: Khulna, Satkhira, Rajshahi, Chapai Nawabgonj, Faridpur, Tangail, Comilla and Bogra districts

Start Date: 00-00-2002

End Date: 00-00-2003

Program Area: Socio-economic and Policy

Non-commodity: Rice

Objectives:

To ascertain the profitability of modem rice cultivation in different rice growing environments as well as in various seasons.

Methodology:

The study was based on the year 2002-2003. Primary data were drawn from a sample survey of the selected villages. The villages had been selected considering different rice growing ecosystems. Five villages of Khulna and Satkhira had been selected as coastal ecosystem, four villages of Rajshahi and Chapai Nawabgonj for drought-prone, four villages of Faridpur and Tangail for deep water and another four villages of Comilla and Bogra for favorable ecosystems. The sample size was 772, 300, 250 and 200 for coastal, drought-prone, deep water and favorable ecosystems, respectively. A detail survey on inputs and outputs information along with costs and returns data of modem rice cultivation for every season and ecosystem were undertaken for the study. In respect of family or home supplied inputs used, opportunity cost had been measured at the current market price. Interest on operating capital had been calculated based on only the production inputs purchased from the markets and hence present interest rate of the commercial bank (12%) had been considered for the crop production period. Descriptive statistics was mainly used for the presentation of findings.

Source of Information: The Agriculturists 2(1): 126-132 (2004), ISSN 1729-5211

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The findings of the study reveal that the spread of MV Aus was relatively slow compared to Aman and Boro seasons. Per hectare cost of production for MV Boro rice cultivation was substantially higher than that of Aman and Aus which was because of higher labor, fertilizer and irrigation cost in Boro season. Although yield of MV Boro was always higher than those of MV Aman and Aus, higher profit margin was obtained from MV Aman. The average cost of T. Aman rice cultivation in favorable ecosystem was comparatively higher than those in other ecosystems and the lowest production cost was found in the case of deep water ecosystem. Higher yield was obtained from favorable ecosystem and the lowest yield was found in deep water ecosystem. Higher gross return as well as profit margin was obtained from rice cultivation in the favorable ecosystem compared to the other ecosystems.

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