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Contribution of Sugarcane Crop to the National Economy of Bangladesh

M. M. Alam
Bangladesh Sugarcane Research Institute, Ishurdi, Pabna, Bangladesh.

M. I. Haque
Bangladesh Sugarcane Research Institute, Ishurdi, Pabna, Bangladesh.

S. M. Bokhtiar
Bangladesh Sugarcane Research Institute, Ishurdi, Pabna, Bangladesh.

Abstract/ Executive Summary:

A study was conducted to determine GDP contribution of sugarcane in the national economy of Bangladesh during the financial year 2003-2004. For the purpose of GDP calculation of sugarcane, secondary data were collected from BSRI, BSFIC, DAE, BBS, BB and DAM. In the present study to calculate GDP, considering 1995-96 as base year and uses GDP valuation at constant market price of the period 2003-2004. Bangladesh has produced goods and services valuation at constant market price of Tk. 2519680 million in the financial year 2003-2004, where the contribution of agriculture and forestry was at 16.85%. Primarily producers sell their sugarcane to the different users at farmgate price and then the final output (sugar and its by-product, seed, juice, gur, cattle feed and fuel) further value added when it is marketed to the consumer via dealer. The value added price of the goods and services of sugarcane crop was found at constant market price of Tk. 16863.52 million comes as GDP valuation to the national economy. Finally, the contribution of sugarcane crop to the national GDP was worked out at 0.67% out of which highest GDP contribution was earned by gur sector (0.39%) followed by sugar (0.15%), chewing and juice (0.04%), seed (0.03%), cattle feed and fuel (0.03%) and by-product (0.03%) respectively. On the other hand, GDP contribution of sugarcane economy was found highest in the gur production (57.35%) followed by sugar (22.61 %), chewing and juice (6.25%), seed (4.95%), cattle feed and fuel (4.61%) and by-product (4.23%).

Keywords: Contribution, Sugarcane, Sugar, Gur, Value added, GDP, National economy

Location: BSRI, Ishurdi, Pabna

Start Date: 00-00-2003

End Date: 00-00-2004

Program Area: Socio-economic and Policy

Commodity: Sugarcane

Objectives:

To find out GDP contribution of sugarcane in the national economy.

Methodology:

The study was conducted considering the cropping year 2003-2004. For the purpose of GDP calculation of sugarcane, secondary data were collected from BSRI (2003), BSFIC (2004), BBS (2004), DAE (2004), DAM (2004) and BB (2005). In the present study to calculate sugarcane GDP, considering 1995-96 as base year and uses GDP of constant market price of the period 2003-2004. Bangladesh has produced goods and services valuation at constant market price of Tk. 2519880 million in the financial year 2003-04 where the contribution of agriculture and forestry was at 16.85%. On the product side, the flow of goods and services currently produced by workers is measured by expenditures of these goods and services by consumers business and government. These sugarcane added value to the final output in the form of sugar and its by product, seeds, juice and gur. The value added price of the goods and services again converted as constant market price of GDP calculation. Some base information are needed to calculate GDP contribution of sugarcane like as total GDP valuation in the year 2003-2004, contribution of agriculture in national GDP, total sugarcane cropped area total sugarcane production, sugarcane crushing in the mills, sugar production, sugarcane use for gur production, sugarcane use for plantation as seed and sugarcane use of chewing and juice.

Source of Information: BANGLADESH JOURNAL OF SUGARCANE, Vol. 24-27, pp. 33-40, July 2005, ISSN- 1991-8925.

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

Though the contribution of sugarcane GDP in terms of percentage is decreased but increased in valuation. Though GDP contribution of sugarcane crop (0.67%) is less than 1%, still a significant figure in comparison to our huge national economy. GDP contribution may vary with the variation of area, yield, weather and price of sugarcane crop. Sugarcane production can be increased by better crop management, application of modern technology, new extension policy towards sugarcane price incentives to the sugarcane farmers and to invest a significant amount for sugarcane research. The increased amount of sugarcane production will also produce more sugar and gur for addition of GDP valuation of national economy.

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