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Regional and Temporal Price Variation and Profitability of Wheat Cultivation in Banglasesh

M. K. Hasan
Planning and Evaluation Division, Bangladesh Agricultural Research Institute, Gazipur-1701, Bangladesh

Abstract/ Executive Summary:

The study was carried out to determine the profitability of wheat production in some selected wheat growing areas of Bangladesh. Regional and temporal price variation of input and output was observed. Profitability was found to way across locations and among farm categories with the variation in input and output price, level of input used and output obtained. The cost for animal power, seed, TSP and irrigation water were found to vary significantly among the locations. The highest net return (Tk.8586/ha) was received by the farmers at Kinajpur followed by that of Rajshahi (Tk.8531/ha) and Jamalpur (Tk.6567/ha). Benefit cost ratio (BCR) was found higher at Dinajpur and Rajshahi (1.42 each) and lower at Jamalpur (1.36). Among the farm categories, the highest BCR was recorded with the large farms (1.47) followed by medium (1.39) and small (1.38) farm.

Keywords: Wheat production, Profitability of wheat, Wheat Cultivation, Wheat

Location: Dinajpur, Rajshahi and Jamalpur districts.

Start Date: 00-11-2003

End Date: 00-06-2004

Program Area: Socio-economic and Policy

Commodity: Wheat

Objectives:

(i) To examine the profitability in wheat production in the study areas.

(ii) To provide policy insights for improving wheat production in Bangladesh.

Methodology:

A multi stage sampling procedure was followed to select study areas. In the first stage three wheat growing districts namely Dinajpur, Rajshahi and Jamalpur were selected purposively which covered 31 percent of total wheat growing areas of the country. In the second stage, one upazila from each district and one union from each upazila were selected randomly. Finally three mouzas (one from each union) were selected randomly for primary data collection. In order to collect primary data, probability sampling technique was adopted. At first a sampling frame of wheat growing holdings were constructed with the help of village leaders, record book of union council and other relevant people. The list included the name of household heads and farm size in the selected mouzas. These farms were stratified into small, medium and large based on land holding as per criterion adopted for many of the farming systems and crop based research in Bangladesh. The classification of the farm groups were as small farms (0.2 ha to <1.0 ha), medium farms (1.0 ha to < 2.0 ha) and large farms (2.0 ha and above). For determining the sample size Fisher’s measure of skewness was applied and an optimum number of 293 samples were chosen. Required farm level data were generated through household surveys. A pre-designed and pre-tested interview schedule was used to collect data during November 2003 to June 2004.

Source of Information: Bangladesh Journal of Agriculture, ISSN: 0253-5408, Vol: 36(2), pp:1-10

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The small farmers cannot spend much for crop production due to dearth of cash and credit. T overcome this problem credit from institutional sources should be provided at the right time so that farmers can use it to procure necessary inputs to grow wheat. Additionally credit institutions should find out mechanism to provide credit to smaller farms with no preconditions.

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