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Socio-economic Factors Influencing Profitability of Rice Seed Production in Selected Areas of Bangladesh

M. Z. Hoque
Department of Agricultural Extension and Rural Development, Bangabandhu Sheikh Mujibur Rahman Agricultural University, Salna, Gazipur-1706, Bangladesh

M. E. Haque
Department of Agricultural Extension and Rural Development, Bangabandhu Sheikh Mujibur Rahman Agricultural University, Salna, Gazipur-1706, Bangladesh

Abstract/ Executive Summary:

Seed is the foundation of agriculture for enhancing crop production. The economic benefits from the improved quality seed production help scaling up the livelihood standard as well as nutritional status of the common people. The study was carried out in three districts namely Jamalpur, Gazipur and Manikganj to identify the socio-economic dimensions of the government seed production project beneficiaries persuading profitability of rice seed production. Data were collected through intensive survey of randomly selected 211 sample respondents using pre-tested interview schedule. To examine the profitability of rice seed production, the gross margin and cost benefit analysis were carried out. Co-efficient of correlation and multiple stepwise regressions were employed to find out the determinants of profitability in rice seed production. Rice seed production was not found to be so profitable as investment in rice seed cultivation can produce average BCR of only up to 1.44, where highest BCR was found in Jamalpur (1.58) compared to Manikganj (1.48) and Gazipur (1.26). The results revealed that socio-economic factors have a profound influence on profitability of rice seed production as these factors combined explained 54.9 percent variation. Farm size, contact with information sources, knowledge on quality rice production and age of the respondents were identified as significant contributors in profitability of rice seed production, whereas contact with information sources was the single most influential factor (24.6%). Therefore, steps may be taken so that the seed growers could directly be linked with more information sources dealing with seed production and marketing through the government initiatives to boost up the production as well as to ensure appropriate price of the farmers’ home grown seed.

Keywords: Rice, Seed production, Gross margin, Cost-benefit ratio, Determinants

Location: Jamalpur, Gazipur and Manikgonj

Start Date: 00-03-2012

End Date: 00-11-2012

Program Area: Socio-economic and Policy

Commodity: Rice

Objectives:

To describe the socio-economic characteristics of the selected rice seed growers;
To measure the profitability of rice seed production at farmers level in selected areas of Bangladesh; and
To explore the relationship between profitability of rice seed and rice seed growers’ selected characteristics;

Methodology:

The study was conducted in purposively selected three districts namely Jamalpur, Gazipur and Manikgonj considering highly concentrated rice growing areas. Multistage proportionate random sampling technique was used in this study. At first, three districts were selected purposively. Then three upazila of the three districts (one from each district) were selected randomly. After that, six blocks (two from each upazila) were selected on a random basis. Finally, twelve villages (two from each block) were also selected randomly. From the selected villages, a list of 467 beneficiaries of government seed production project was done, which constituted the active population for the study. Out of 467 farmers, 211 farmers were selected as sample of the study by adopting the following formula. Data were collected through pretested interview schedule during March to September 2012 through intensive survey by the researcher. After collection of data, all the information contained in the interview schedule was edited. All the collected data were then checked and cross checked, compiled, coded and entered into the computer for analysis and interpretation using Microsoft Excel and Statistical Package for the Social Sciences (SPSS). Qualitative data were converted into quantitative form. Statistics like means, percentages, standard deviation and frequencies were used to describe selected characteristics of the respondents. Multiple regression and stepwise regression were computed to find out the determinants of profitability of rice seed production. Economic analysis were applied to determine BCR, gross margin and marginal benefit cost ratio of rice seed production.

Source of Information: The Agriculturists 12(1): 33-40 (2014) ISSN 2304-7321 (Online), ISSN 1729-5211 (Print), A Scientific Journal of Krishi Foundation

Article Link (Online Journal): http://banglajol.info/index.php/AGRIC/article/view/19578/13539

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The results of the study show that old aged farmers having primary level of education dominated in government’s quality seed production project, which is not a good sign for adoption of any new practices. Moreover, age of the respondents was recognized as a significantly negative contributor in profitability of seed production. Hence, future project activities may encourage on involving younger to middle aged educated beneficiary in project activities. The average benefit cost ratio (total cost basis) was found 1.44 which is not satisfactory considering the present economic context. Contact with the sources of information emerged as the single most outstanding positive contributor to profitability of rice seed production followed by farm size (positive contributor), age (negative contributor) and knowledge on rice seed production (positive contributor). Contact with sources of information and farm size combinedly explained 36.2 percent of variability signifying that these two socio-economic factors are the most dominant factors contributing to profitability of rice seed production. The farmers were largely dependent on the information sources of The Department of Agricultural Extension (DAE), neighboring farmers and seed dealers regarding seed production. However, the information sources sometimes cannot provide appropriate technical support due to complexity of the system as a whole. Measures may be therefore, taken to establish better linkages among DAE, research organizations and farmers. Economic activity programmes for the farmers like introduction of Seed Village, Youth Group formation with small credit and irrigation device support for seed production, Community level seed production programme etc. may be undertaken by the GO-NGO partnerships to support the farmers for income generation from seed production and marketing activities.

Knowledge Management: Journal