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Productivity and Profitability of Rice Production in Bangladesh

M. H. Rahman
Agricultural Economics Division, Bangladesh Institute of Nuclear Agriculture (BINA), Mymensingh, Bangladesh.

T. H. Miah
Department of Agriculture Economics, Banglaadesh Agricultural University, Mymensingh, Bangladesh.

Abstract/ Executive Summary:

The study was designed to identify and explain the possibilities for improving the productivity and profitability of rice. The investigation was undertaken in three major rice growing areas representing three agro-ecological zones of Bangladesh. The analysis 'Alas mainly based on a set of field level primary data collected from 300 sample farmers from the three areas. The Stochastic Frontier production function analysis was used to determine the productivity and profitability of rice production. Productivity of boro, aman and aus rice varied across areas and among farm categories. Bora rice showed the highest productivity (6198.78 kg) in all farm groups in all the studied areas followed by aman rice (4073.73 kg) and aus rice (1583.66 kg). Net returns per hectare estimated for different rice crops were statistically different from each other. Net return per hectare was significantly higher for boro rice (Tk. 29995.58) followed by aman rice (Tk. 21749.26) and aus rice (Tk. 4536.57). All rice crops were profitable in respect of benefit-cost ratios (full cost basis) which were 1.77, 1.88 and 1.38 for boro, aman and aus, respectively in all the areas. The maximum likelihood estimates of stochastic frontier production function model showed that plot size, seed, urea, TSP, manure, pesticide cost, seedling age, land type and area (dummy) had a significant positive impact on boro rice production. For aman rice, plot size, urea, TSP, manure, pesticide and crop duration had positive and significant coefficients whereas plot size, TSP, pesticides and land rent had positively significant coefficients for aus rice. For all rice crops, the estimated coefficients of education and extension contact of the farmers had negatively significant effect upon the inefficiency effects.

Keywords: Productivity, Profitability, Rice

Location: Old Meghna estuarine floodplain area in Comilla (AEZ-19), the Old Brahmaputra floodplain area in Mymensingh (AEZ-9) and the Tista Meander floodplain area in Rangpur (AEZ-3).

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Rice

Objectives:

i) To estimate the productivity and profitability of rice production by locations and seasons,

ii) To examine the prospect of attaining self-sufficiency in rice production in Bangladesh and

iii) To suggest some policy guidelines/recommendations

Methodology:

The study was undertaken in 2008 in three major rice growing areas representing three agro-ecological zones of Bangladesh namely; the Old Meghna estuarine floodplain area in Comilla (AEZ-19), the Old Brahmaputra floodplain area in Mymensingh (AEZ-9) and the Tista Meander floodplain area in Rangpur (AEZ-3). To collect primary data, the sample farmers were selected with stratified random sampling technique with arbitrary allocation. In total three hundred owner operator farmers were interviewed in this study. A total of 100 farmers were selected from the collected lists of each location by adopting simple random sampling methods, taking 50 farmers from each village. Relevant secondary data were obtained from various published and unpublished reports of government and non-government agencies whichever were deemed appropriate. To obtain the secondary data, a checklist of different items was prepared to avoid missing of information. To determine comparative advantage of rice production, necessary data were obtained from different secondary sources. Both tabular and statistical analysis including mean, standard deviation, gross margin (GM) analysis, net return (i.e. profit) analysis were done. The study was made on the basis of two analysis, namely partial analysis and marginal analysis of variables. Descriptive tabular method was used for a substantial part of data analysis. Finally, to meet particular research objectives, several analytical methods were employed in this study.

Source of Information: Bangladesh Journal of Nuclear Agriculture, Vol:23 & 24, pp:95-106, 2012, ISSN-0258-7130,

Article Link (Online Journal):

Funding Source:

1. Government

Budget:

Total Budget (Tk.) :

Achievement/Findings:

From the study results, it could be concluded that all rice crops were profitable in respect of benefit-cost ratios (full cost basis) which were 1.77, 1.88 and 1.38 for boro, aman and aus, respectively in all the areas. The maximum likelihood estimates of stochastic frontier production function model showed that plot size, seed, urea, TSP, manure, pesticide cost, seedling age, land type and area (dummy) had a significant positive impact on boro rice production. For aman rice, plot size, urea, TSP, manure, pesticide and crop duration had positive and significant coefficients whereas plot size, TSP, pesticides and land rent had positively significant coefficients for aus rice. For all rice crops, the estimated coefficients of education and extension contact of the farmers had negatively significant effect upon the inefficiency effects.

Knowledge Management: Journal