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Profitability of Betel Leaf (piper Betle L.) Cultivation in Some Selected Sites of Bangladesh

Q. M. S. Islam
Principal Scientific Officer
Agricultural Economics Division, BARI, Joydebpur, Gazipur, Bangladesh.

M. A. Matin
Principal Scientific Officer
Agricultural Economics Division, BARI, Joydebpur, Gazipur, Bangladesh.

M. A. Rashid
Principal Scientific Officer
Agricultural Economics Division, BARI, Joydebpur, Gazipur, Bangladesh.

M. S. Hoq
Scientific Officer
Agricultural Economics Division, BARI, Joydebpur, Gazipur, Bangladesh.

Moniruzzaman
Senior Scientific Officer
Agricultural Economics Division, BARI, Joydebpur, Gazipur, Bangladesh.

Abstract/ Executive Summary:

The study was conducted in four betel leaf growing areas, namely Barisal, Chittagong, Rajshahi and Kushtia district during 2013-14 to assess the cultivation practices, physical productivity, profitability, and to explore the constraints to betel leaf cultivation. The study has been designed to investigate the economics of betel leaf production considering intensive cultivated areas for recent information in Bangladesh. From each district, two upazilas were selected considering the concentration of betel leaf growers and easy access. Also from each upazila, two blocks and from each block 20 farmers were selected with the consultation of Upazila Agriculture Officer and Sub Assistant Agriculture Officer. The study revealed that betel leaf cultivation was profitable in the study areas, although BCR in the first and second years was below one which was due to high initial cost. The highest yield and gross return of betel leaf cultivation were in the fifth year. The benefit cost ratio was found highest in 6-10 year followed by 5th and 11-15 year. The benefit cost ratio at 12%, 15% and 20% rate of interest were 1.27, 1.25 and 1.21 respectively. Internal rate of return (IRR) was calculated 62% in current situation, IRR 37% was found by 10% decrease of return and 39% by 10% increase of cost. The problems like leaf rot disease, high price of boroj materials, low price of betel leaf, high price of oil cake, etc. were facing by the betel leaf farmers.

Keywords: Betel leaf, BCR, IRR, NPV, Constraints

Location: Barisal, Chittagong, Rajshahi and Kushtia

Start Date: 00-00-2013

End Date: 00-00-2014

Program Area: Socio-economic and Policy

Commodity: Betel leaf

Objectives:

1. To know the agronomic practices of betel leaf at growers level.

2. To determine the cost and return of betel leaf cultivation.

3. To estimate physical productivity and returns to investment in betel leaf cultivation, and

4. To find out the constraints of betel leaf cultivation at farm level.

Methodology:

Multi-stage sampling technique was followed in this study. Four betel leaf growing districts namely Barisal, Chittagong, Rajshahi and Kushtia were purposively selected. Again from each district, two upazilas were selected considering the concentration of betel leaf growers and easy access. Also from each upazila, two blocks were selected with the consultation of Upazila Agriculture Officer. A list of betel leaf growers from the selected blocks was prepared with the help of DAE personnel. Thus a total of 4×2×2×16 = 256 samples were randomly selected for the interview. Experienced field investigators with the direct supervision of the researchers collected data and information using a pre-tested interview schedule. Data were collected during the period of November to April, 2013-14. Tabular method of analysis using descriptive statistics like average, percentage, ratio etc. was followed in presenting the results of the study. Data were categorized according to the age of betel leaf boroj. The age of the boroj were classified like 1st year, 2nd year, 3rd year, 4th year, 5th year, (6-10) th year, (11-15) th year and (16 and above) th year. Because both cost of production and yield were vary year to year. Collected data were edited, summarized, tabulated and analyzed to fulfill the objectives of the study. (b) To measure the return to investment of betel leaf cultivating project appraisal technique. For measuring capital productivity, costs and returns were discounted at 12 %, 15% and 20% rate of interest. The Benefit cost ratio (BCR), Net present value (NPV) and Internal rate of return (IRR) in betel leaf cultivation were calculated.

Source of Information: Bangladesh J. Agril. Res. 40(3): 409-420, September 2015, ISSN 0258-7122

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The study has estimated the agronomic practices, profitability, returns to investment of betel leaf cultivation and constraints to its cultivation at farm level. The benefit cost ratio, net present worth and internal rate of return indicate that betel leaf cultivation is profitable. Sensitivity analysis also indicates that the owners of betel leaf boroj can earn profit under changing situation. Although betel leaf cultivation is profitable, but farmers faced various problems such as infection of leaf rot disease, high price of boroj materials, vine died, lack of capital, low price of betel leaf, high price of oil cake, non-availability of modern variety, labor scarcity, and lack of irrigation water. For controlling leaf rot disease of betel leaf, pathologist may conduct research on this aspect. It is also imperative to carry out more research on developing high yielding varieties of betel leaf and develop appropriate production technologies for maximizing the yield as well as income and minimizing the cost. Extension works with publicity need to be strengthened to popularize the modern varieties of betel leaf in order to expand its cultivation area.

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