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Profitability of Onion Cultivation and Some Competitive Spices Crops in Bangladesh

M. A. Awal
Scientific Officer (Agril. Econ.)
RARS, Rahrnatpur, Barisal, Bangladesh

M. S. Islam
Senior Scientific Officer
T & C Division, Panning and Evaluation Division, BARI, Joydebpur, Gazipur, Bangladesh

M. A. Hossain
Senior Scientific Officer, T & C Division
BARI,Joydebpur, Gazipur, Bangladesh

S. M. M. Rahman
Senior Officer ( Hort)
ARS, Raikhali, Chondragona, Rangamati, Bangladesh

Abstract/ Executive Summary:

The study examines the relative profitability of onion cultivation with other competitive spices crops. The survey study was conducted in rabi season in 2000-2001. Data were collected from 120 farmers in Sherpur District. The average yield of onion was 6183 kg/ha, which was higher in large farmers (6700 kg/ha) compared to medium farmers (5500 kg/ha). The average cost of production of onion was Tk. 27057/ha when all variable costs were considered and Tk. 16947/ha only cash costs were included. Onion was the most profitability crop followed by Ginger, Chilli, Garlic ,Turmeric and Coriender. Coriander obtained the lowest net return (Tk. 14806.90/ha). Onion needs more capital than all selected spices except Chilli. Ginger's gross return was high due to higher price in the market. Gross margin over cash cost onion was Tk. 42904/ha due to higher yield and proper management practices. Ginger obtained a gross margin Tk. 37770/ha when cash cost was considered. Benefit cost ratio of onion was attained at 2.21 on full cost basis and 3.53 on cash cost basis. Ginger ranked the second position, the benefit cost ratio was 1.98 on full cost basis and 3.32 on the cash cost basis, due to low expenditure. The average gross margin was obtained at Tk. 32794 per hectare when all variable costs were deducted.

Keywords: Profitability, Onion, Spices crops

Location: Kamararchar, Munshirchar, Charsherpur, Bagarchar, Charmucharia and Kushomhati in district of Sherpur

Start Date: 00-00-2000

End Date: 00-00-2001

Program Area: Socio-economic and Policy

Commodity: Onion

Objectives:

(i) To calculate the farm level cost and return from onion cultivation.

(ii) To compare the profitability of onion cultivation with other competitive crops.

Methodology:

Data were collected from both primary and secondary sources.Six villages, namely Kamararchar, Munshirchar, Charsherpur, Bagarchar, Charmucharia and Kushomhati in district of Sherpur, were selected for the study. Six unions were selected purposively where a large number of farmers cultivated the onion. A complete list of onion growers of the selected areas was prepared for the year of 2000-2001 rabi season, and a sample of 120 farmers were randomly selected. Selected respondents were interviewed directly with the help of a pre- designed questionnaire. The collected data were summarized and analyzed to fulfill the objective of the study. Tabular method of analysis using average, percentage, ratio, etc was followed in the study. Information on costs and returns of different competitive spices crops like ginger, garlic, turmeric, chili and coriander were taken from previous studies conducted by the Horticulture Baseline Production and Marketing Survey (FAO Report; 1997 and Sabur and Molla, 1993). The information was up dated using prices of respective crops in the year under study.

Source of Information: Progress. Agric. 12 (1 & 2): 251-254, 2001; ISSN 1017-8139

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

It may be concluded that with the existing farmers' technology, onion cultivation is profitable compared to other competing spices crops in Bangladesh. Farmers' income will be raised much if they cultivate onion instead of others spices. However, availability of loan to the onion cultivars and ensuring reasonable price during harvest time is the prerequisite of the cultivation of onion. Because Onion and Chilli needs more capital, it is found that about 85% of the growers sold their onion during harvest time. Majority of the selected farmers growing onion complained about the scarcity of capital/loan and low price of at the harvest time.

Knowledge Management: Journal