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Resource Use Efficiency of Onion Seed Production: a Study at Two Locations of Bangladesh

M. K. Hasan
SpSpices Research Centre, Bangladesh Agriculture Research Institute, Shibganj, Bogra, Bangladesh.

M. A. J. Miah
Spices Research Centre, Bangladesh Agriculture Research Institute, Shibganj, Bogra, Bangladesh.

R. Ara
Spices Research Centre, Bangladesh Agriculture Research Institute, Shibganj, Bogra, Bangladesh.

Abstract/ Executive Summary:

The study was undertaken to identify the profitability and resource use efficiency of onion seed at two upazilas namely Durgapur and Sadarpur under the district of Rajshahi and Faridpur of Bangladesh. The study revealed that the farmers obtained higher gross return, gross margin and favorable benefit cost ratio from the cultivation of onion seed in two areas. In all areas the magnitudes of the co-efficient of onion seed implied that power tiller, manure, fertilizer, insecticides and irrigation had significant effect on gross return. The BCR was 2.98, which indicated that farmers could earn Tk. 2.98 by investing Tk. 1.00. Onion seed cultivation seemed to be a profitable venture as Growers could increase yield per hectare by using more ploughing, manure, fertilizer, insecticides and irrigation. The overall performance of the Cobb-Douglas production model for onion seed was not poor as indicated by estimated R² value.The ratios of marginal value product (MVP) and marginal factor cost (MFC) for power tiller, seed, manure, fertilizer, insecticides and irrigation were greater than one and positive implied that farmers used their resources optimally.

Keywords: Onion seed, Profitability, Constraints, Resource use efficiency

Location: Durgapur, Rajshahi and Sadarpur under the district of Faridpur

Start Date: 00-00-1998

End Date: 00-00-1999

Program Area: Socio-economic and Policy

Commodity: Onion

Objectives:

1. To estimate the cost and return of onion seed production

2. To examine the resource use efficiency of onion seed cultivation and identify of its constraints.

Methodology:

Two upazilas namely Durgapur and Sadarpur under the district of Rajshahi and Faridpur were selected purposively for this study. One union from each upazila was selected where onion seeds are grown extensively. Before selecting sample farmers, a complete list of all the onion seed growers in each area were prepared with the help of block supervisor of respective area. Finally, a total of 80 farmers were selected randomly taking 40 farmers from each area. The necessary information was collected with the help of pre-tested interview schedule using direct interview in 1998-99 production period. Land use cost was calculated on the basis of per year rental value of land. The collected data was summarized and analyzed to achieve the objectives of the study. Tabular and statistical methods were followed in analyzing the results of the study. Human labor, power tiller, seed bulb, manure, fertilizer (Urea, TSP, MP and Zypsum), insecticides and fungicides, and irrigation were used as explanatory variables and were considered to be the most important inputs responsible for producing onion seed. In order to estimate the parameters, Cobb-Douglas production function model was fitted separately for Rajshahi and Faridpur. The measures of resource use efficiency, the ratio of Marginal Value Product (MVP) to Marginal Factor Cost (MFC) for each input was calculated by some algebric manipulation and tested for its equality to 1, i.e. MVPIMFC=1.

Source of Information: J Agric Rur Dev 1(1), 83-92, 2003

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Based on the findings of the present study, it might be said that, the onion seed cultivation is profitable enterprise for the farmers. It was also observed that most of the explanatory variables had positive effect on output (yield). Further, it was noted that in all aspect farmers of Rajshahi were very close to the optimum level of resource allocation.

Knowledge Management: Journal