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Technical Efficiency of Mustard Production in Jamalpur District

A. S. M. Anwarul Huq
Principal Scientific Officer
Bangladesh Agricultural Research Council, Farrngate, Dhaka

W. A. Zahan
Professor
Department of Agricultural Economics, Shere-e-Bangla Agricultural University, Dhaka

M. M. Zaman
Senior Scientific Officer
Regional Agricultural Research Station, BARl, Jamalpur.

M. M. Kadir
Senior Scientific Officer
Department of Plant Breeding, Regional Agricultural Research Station, BARl, Jamalpur.

Abstract/ Executive Summary:

Present study was undertaken to determine the level of technical efficiency and analyze the status of resource allocation for mustard production in Jamalpur districts. The Cobb- Douglas stochastic production frontier model was used to analyze the data. The study revealed that cultivation of mustard is profitable but not at satisfactory level. By cultivating Tory-Z variety of mustard, net return was only Tk. 1516/-, and gross margin was only Tk. 4516/- per hectare. The benefit cost ratio (BCR) was 1.11 for mustard. All of the farmers were found to have produced outputs with their mean technical efficiency was 80% (efficiency levels varying from 20% to 97%). On average, 20% technical inefficiency appears, which implies that the output per farm can be increased on average by 20% for mustard production under the prevailing technology (with Tory-Z variety) without incurring any additional production costs. Side by side advanced technology (high yielding variety) could be adapted to increase production of this oil crop.

Keywords: Efficiency, Resource allocation, Cobb-Douglas production function, Mustard production

Location: Kampapur, Langalzora, Horipur, Shahpara, Morakandi and Morabon, Islampur, Jamalpur

Start Date: 00-00-2005

End Date: 00-00-2006

Program Area: Socio-economic and Policy

Non-commodity: Efficiency

Objectives:

1. To determine the level of technical efficiency of the mustard producing farmers,

2. To determine the status of resource allocation,

3. To assess the problems of mustard production

Methodology:

Jamalpur district was selected, as it is one of the important mustard growing area. Six villages namely Kampapur, Langalzora and Horipur from Sadar Thana, and Shahpara, Morakandi and Morabon, from Islampur Thana of Jamalpur districts were selected, where this crop was cultivated extensively. A total of 105 mustard growers were selected. Simple random sampling technique was used to select the farmers. Data were collected by visiting each farm personally and by interviewing them with the help of a pre tested interview schedule. Data also collected from the scientist of Regional Agricultural Research Station who works with oil seeds. The reference period for the survey was 2005-06. The parameters for the stochastic production frontier model and those for the technical inefficiency model would be estimated simultaneously using the maximum likelihood estimation (MLE) method by Frontier 4.1 program, which estimates the variance parameters of the likelihood function.

Source of Information: JOURNAL OF SHER-E-BANGLA AGRICULTURAL UNIVERSITY, Vol. 01 (1), July 2007, pp. 39-47.

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

It is apparent from the study that cultivation of mustard was profitable in Jamalpur district but not at satisfactory level. Human labour, power tiller cost and fertilizer were identified as important factors for the increase of mustard production. All of the farmers were found to have produced outputs with their mean technical efficiency was 80% (efficiency levels varying from 20% to 97%). The results indicate that there is substantial inefficiency in mustard production in Jamalpur district. The predicted frontier production is still less than per hectare mustard production in research field for high yielding varieties. Thus, Jamalpur area has potential for shifting its production frontier upward by introducing high yielding varieties like BARI-9 to the farmers' field. The results show that technical efficiency in mustard production can be improved by increasing the input levels, especially human labour and fertilizer. Similarly some of the ways to increase mustard production through technological advancement including development of short duration high yielding varieties of mustard. However the realization of these potentials depends greatly on continuous efforts of the government in ensuring timely and adequate supply of quality seed, chemical fertilizer, market and infrastructure development, research, training and extension in order to exploit full potential for increased mustard production.

Knowledge Management: Journal