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Economic Profitability of Groundnut Production in Some Selected Char Areas of Bangladesh

M. Alamgir Hossain
Agricultural Economics Division, Bangladesh Agricultural Research Institute, Joydebpur, Gazipur.

Abstract/ Executive Summary:

Agro-economic survey data on groundnut cultivation was collected during kharif season, 1988, from 100 farmers of char areas in Gaibanda and Lalmonirhat districts of Bangladesh. The average yield of groundnut was 1610 Kg/ha. It was higher in Gaibanda (1700 Kg/ha) and lower in Lalmonirhat 1520 Kg/ha). The average cost of production of groundnut was observed to be TK 7959/ha when all variable costs were included and TK 1826/ha when only cash costs were included. The average gross margin was observed to be TK 4731/ha when all variable costs were deducted. The average benefit cost ratio was 1.59 and 7.18 on total variable cost and cash variable cost respectively. In comparison with some other important competitive crops, groundnut showed to be one of the most profitable crops.

Keywords: Production, Economic, Profitability, Char areas

Location: Gaibandha Sadar upazila and Lalmonirhat thanas

Start Date: 00-04-1988

End Date: 00-09-1988

Program Area: Socio-economic and Policy

Commodity: Ground nut

Objectives:

1) To estimate the farm level costs and return from groundnut cultivation in char areas and

(ii) To compare the economic profitability of groundnut cultivation with some other competitive crops.

Methodology:

The sadar upazilas of Gaibandha and Lalmonirhat thanas were selected purposively for the study where a large number of farmers cultivated groundnut. A complete list of groundnut farmers in each locations was prepared during kharif season, 1988, and a sample of 50 farmers from each location was selected randomly. Each sampled farmer was interviewed directly with the help of a predesigned questionnaire. One groundnut; plot of each sampled farmer was selected for collection of all informations on yield and input use. The collected data were summarized and analyzed to fulfill the objectives set for the study. Tabular method of analysis using average, percentages, ratio etc. was followed in the study. Information on costs and returns of different competitive crops like sweet potato, kaon and cheena were taken from previous studies conducted by the Agricultural Economics Division, BARI³. The economic profitability in groundnut cultivation has been measured in terms of gross margin, benefit cost ratio, return to labour cost etc. in different study areas. The cost of production included all variable cost items like labour, draft power, seed, manure and fertilizer and interest on operating capital. Both cash expenses and imputed values of the family owned inputs used in the survey plots were included in calculating cost of production.

Source of Information: Bangladesh J. Sci. Ind. Res., XXIX, No.4, 1994

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The result indicated that in char areas, under existing farmers technology, groundnut cultivation is profitable in comparison with many of its competitive crops. The area for groundnut cultivation is being increased in the last decade but the farmers are using traditional practices and lower dose of inputs which would reduce its profitability. So, there is a scope for improvement of groundnut cultivation by providing improved management practices with high yielding variety, local varieties with appropriate methods of production to increase yield and profitability.

Knowledge Management: Journal