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Profitability of Power Tiller Ownership in an Area of Bangladesh

M. H. Kabir
Agricultural Economics Division, Bangladesh Sugarcane Research Institute, P.O. Ishurdi-6620, Bangladesh.

M. M. Alam
Agricultural Economics Division, Bangladesh Sugarcane Research Institute P.O. Ishurdi-6620, Bangladesh.

S. M. K. Rahman
AERS. Bangladesh Agricultural Research Council, Farrngatc, Dhaka-1215, Bangladesh.

Abstract/ Executive Summary:

The present study was conducted to estimate the costs and returns of power tiller and animal power users and to assess profitability of multipurpose use of power tiller owners. Data were collected from ninety sample farms randomly at the rate of 30 from each category of power tiller owners, hired power tiller users and animal power operated sugarcane farms from Chuadanga and Dharnurhuda Upazillas under Chuadanga district. The results revealed that net returns of power tiller owners were significantly higher on full cost and cash cost basis than that of animal power operated sugarcane farms. Gross cost of sugarcane cultivation was significantly higher for animal power than that of owner of power tiller user. The study indicated that the farmers obtained power tillers services by hiring from the power tiller owners and cultivated sugarcane profitably. Gross margin from multiple use of power tillers owned by the farmers was highly profitable.

Keywords: Profitability, Power tiller, Production, Economics

Location: Dhamurhuda, Chuadanga

Start Date: 01-01-1997

End Date: 30-03-1998

Program Area: Socio-economic and Policy

Commodity: Power Tiller

Objectives:

i) To determine the costs and returns of farms using power tillers and animal power in sugarcane production;

ii) To assess the profitabiIity of power tiIler for multipurpose use from the viewpoint or power tiller owners;

ii) To suggest some policy guide lines.

Methodology:

To fulfill the objectives of the study, two Upazillas namely Chuadanga. and Dhamurhuda under Chuadanga district were selected. Lists of sugarcane farmers consisting of 100 power tiller owners, 100 hired power tiller users and 100 animal power cultivators were prepared from 15 villages. Thirty owner power tillers. thirty hired power tiller cultivators and thirty animal power operated farms were randomly selected from the list. Two sets of pre-tested questionnaires were used to collect data from the power tiller / animal power users of sugarcane growers and multiple use of the tillers. The study period covered from January 1997 to March 1998. Data were collected and recorded by the investigators. In analyzing the data. tabular as well as statistical technique (t-test) were used to fulfill the objectives the study. The profitability analyses of sugarcane was done by using simple cost and return analysis by considering different activities of power tiller and animal power use. The whole analysis was accomplished by considering full cost and cash cost approach. Gross returns were calculated by valuing both main product and byproducts. Total variable cost (TVC) is calculated considering the costs that are affected by a choice (Amir and Knipscheer. 1989). In this case total variable costs included costs incurred for hired human labour, animal labour (own)/power tiller (own or hired), repair and maintenance including operation 01' tillers. seeds and seedlings, fertilizer, insecticides. irrigation, cutting and loading (hired). transport and interest on operating capital. Cash costs included costs incurred human labour. animal labour (own)/ power tiller (own or hired), repair and maintenance including operation of tillers, purchased seeds and seedlings, fertilizers, insecticides, irrigation, transport cutting and loading (hired) and interest on operating capital. Full costs refer to total variable costs and fixed costs. Fixed costs covered family supplied human and animal labour/power tiller (own), depreciation costs of animal/equipment, interest on equipment and land investment. The cost of power tiller included capital cost of power tiller including the cost of trolley. The operation, repair and maintenance costs of tillers involve the cost of fuel, spare parts, mechanic fees and salaries of drivers. In calculating gross margin, all operating costs irrespective of power tiller for own purpose or for others (hiring out) have been considered as total variable cost while income derived from hiring out services of power tiller as well as cost saved from own use have been considered as total return. Fixed cost has not been taken into consideration to obtain gross margin of power tiller owners.

Source of Information: Bangladesh Journal of Agriculture, Vol. 27 & 28, pp. 07-12, 2002 & 2003, ISSN- 0253-5408, Bangladesh Agricultural Research Council.

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Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The results revealed that net returns of power tiller owners were significantly higher on full cost and cash cost basis than that of animal power operated sugarcane farms. Gross cost of sugarcane cultivation was significantly higher for animal power than that of owner of power tiller user. The study indicated that the farmers obtained power tillers services by hiring from the power tiller owners and cultivated sugarcane profitably. Gross margin from multiple use of power tillers owned by the farmers was highly profitable.

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