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Profitability of Betel Leaf Cultivation in Some Selected Areas of Bangladesh

Q. M. S. ISLAM
Principal Scientific Officer

M. A. MATIN
Chief Scientific Officer

Abstract/ Executive Summary:

The study was conducted in two betel leaf growing areas namely Jessore and Patuakhali district during 2014-15 to assess the physical productivity, profitability and to explore the constraints to betel leaf cultivation. The findings of the study revealed that betel leaf cultivation was profitable in the study areas, although BCR in the first and second years was below one due to high investment cost. Gross return of betel leaf cultivation was highest in the fifth year. Highest yield received by the farmers also in the fifth year. The benefit cost ratio was found highest in fifth year followed by 6-10 year and 11-20 year. The benefit cost ratio at 12%, 15% and 20% rate of interest were 1.23, 1.21 and 1.18 respectively. IRR was calculated 76% in current situation, IRR 20% was found by 10% decrease of return and IRR 22% by 10% increase of cost. The result indicates that betel leaf cultivation is profitable under changing situation of sensitivity analysis. Farmers faced some constraints like leaf rot disease, high price of boroj materials, vine died, lack of capital, low price of betel leaf, high price of oilcake, non-availability of modern variety etc

Keywords: Agronomic practices, Investigate, Profitability, Betel leaf cultivation

Location: Jessore and Patuakhali

Start Date: 00-00-2014

End Date: 00-00-2015

Program Area: Socio-economic and Policy

Commodity: Betel leaf

Objectives:

To examine the agronomic practices of betel leaf and to determine per hectare cost of production at growers level.
To investigate physical productivity of betel leaf as well as returns obtained by the growers.
To explore the constraints and farmers attitudes towards betel leaf cultivation.

Methodology:

Multi-stage sampling technique was followed for the study. Two betel leaf growing districts namely Jessore and Patuakhali were purposively selected. Again from each district three upazilas were selected considering the concentration of betel leaf growers and easy access. Also from each upazila one block was selected with consultation of Upazila Agriculture Officer. A list of betel leaf growers from the selected block were collected with the help of DAE personnel. Thus a total of 2 x 60 = 120 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 categorized according to the year of cultivation. The age of the boroj were classified like 1^st year, 2^nd year, 3^rd year, 4^th year, 5^th year, (6-10)^th year and (11-20)^th year. Collected data were edited, summarized, tabulated and analyzed to fulfill the objectives of the study. Tabular methods of analysis using descriptive statistics like average, percentage, ratio etc. were followed in presenting the results of the study. For measuring capital productivity, costs and returns were discounted at 12 %, 15% and 20% rate of interest. The BCR, NPV and IRR in betel leaf cultivation were calculated ..

Source of Information: Annual Research Report,AGRICULTURAL ECONOMICS DIVISION Bangladesh Agricultural Research Institute Joydebpur, Gazipur-1701 August, 2015

Article Link (Online Journal):

Funding Source:

1.

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The benefit cost ratio, net present worth and internal rate of return indicated that betel leaf cultivation was profitable for the farmers in the study areas. Sensitivity analysis also indicated that the betel leaf farmers can earn profit under changing situation. Cultivation cost of betel leaf was very high. Farmers faced the constraints of leaf rot disease, high price of boroj materials, vine died, lack of capital, low price of betel leaf, high price of oilcake, non-availability of modern variety and labour etc.Pathologist may conduct research on betel leaf for controlling leaf rot disease. It is also imperative to carry out more research on developing high yielding varieties of betel leaf and to develop appropriate production technologies for maximizing the yield as well as income and minimizing cost. Extension works with publicity need to be strengthened to popularize the BARI released two modern varieties of betel leaf and to expand the cultivation area.

Knowledge Management: Report/Proceedings