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Productivity and Profitability of Rice Production in Bangladesh

M. H. Rahman
Agricultural Economics Division, Bangladesh Institute of Nuclear Agriculture, Mymcnsingh, Bangladesh

T. H. Miah
Department of Agriculture Economics, Bangladesh 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 was 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. Productvity of boro, aman and aus rice varied across areas and among farm categories. Boro rice showed the highest productivity (6 198.78 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 a man rice (Tk. 21749.26) and aus rice (Tk. 4536.57). A II rice crops were profitable in respect of benefit-cost ratios (full cost basis) which we re 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: Mymensingh (AEZ-9) and Rangpur(AEZ-3)

Start Date: 00-00-2008

End Date:

Program Area: Socio-economic and Policy

Commodity: Rice

Objectives:

To estimate the productivity and profitability of rice production by locations and seasons.
To examine the prospect of attaining self-sufficiency in rice production in Bangladesh.
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 I00 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 analyses 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 analyses, 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 J . Nuclear Agric. 23 & 24:95-106,2012 ; ISSN 0258-7130

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

Boro rice showed the highest productivity (6 198.78 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 a man rice (Tk. 21749.26) and aus rice (Tk. 4536.57). AII 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