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Bangladesh Agriculture at the Crossroads: Achievements,challenges and Potential

Sanzidur Rahman
School of Geography, Earth and Environmental Sciences, University of Plymouth, Plymouth, UK E-mail: srahman@plymouth.ac.uk

Mohammad Mizanul Haque Kazal
Department of Development and Poverty Studies Sher-e-Bangla Agricultural University, Dhaka, Bangladesh. Email: mhkazal@gmail.com

Abstract/ Executive Summary:

The paper examines the potential of agricultural sector of Bangladesh based on a synthesis of existing literature covering trends in area, production, and yield of major crops (1948-2006), TFP growth in agriculture, its sources and drivers (1948-2008), competitiveness, financial profitability and responsiveness to prices and production efficiency of major crops at the farm level. Results revealed that the land use intensity has increased significantly over time due to a widespread adoption of Green Revolution technology. Contrary to expectation, crop diversity has also increased @ 0.60% p.a. Agricultural TFP grew @ 0.57% p.a. during 1948-2008 led by Chittagong, Rajshahi, Rangpur, Dinajpur and Noakhali regions and was powered mainly by technological progress @ 0.74% p.a. Most of the major crops are competitive at the producer level and major crops (rice, wheat, maize, lentil, mustard, and jute) are financially profitable with BCR ranging from 1.10–1.43. Farmers’ responses to input and crop prices are largely inelastic with a few exceptions. Efficiency levels of producing major crops are relatively high (TE > 0.70 across crops) wherein education, farm size, extension services, soil fertility and infrastructure are the main drivers. Key policy implications include price policies to improve crop prices and investments in R&D, extension services, crop diversification, rural infrastructure, farmers’ education, land and tenurial reforms to boost growth in Bangladesh agriuclture.

Keywords: Trend analysis, TFP growth, competitiveness, Financial profitability, Price and non-price elasticities, Production efficiency, Agriculture, Bangladesh

Location:

Start Date: 00-00-1948

End Date: 00-00-2006

Program Area: Socio-economic and Policy

Non-commodity: Analysis and interpretations

Objectives:

To elaborate salient features and key conclusions from the existing literature

Methodology:

The paper mainly draws upon published research on various aspects of Bangladesh agriculture conducted by the first author with other co-authors over the past two decades. Also, other literature on Bangladesh agriculture relevant for this study was consulted. The main purpose was to elaborate salient features and key conclusions from the existing literature so that the aforementioned five objectives of this paper are satisfactorily met. For details on specific aspects covered in this study, the readers are advised to consult the cited references. The principal literature used are Rahman and Salim (2013), Kazal et al. (2013), Rahman (2003, 2007, 2009, 2010, and 2011), Rahman and Hasan (2008), Rahman and Rahman (2008), Rahman et al. (2015) and Coelli et al. (2002, 2003).

Source of Information: Paper prepared for the presentation at the 15th National Conference and Seminar “Transformation of Agricultural Sector in Bangladesh in 21st Century” of the Bangladesh Agricultural Economists Association held on 22-23 January, 2016 at the Bangladesh Agricultural Research Council (BARC), Farmgate, Dhaka. Bangladesh.

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Results revealed that the land use intensity has increased significantly over time due to a widespread adoption of Green Revolution technology. Contrary to expectation, crop diversity has also increased @ 0.60% p.a. Agricultural TFP grew @ 0.57% p.a. during 1948-2008 led by Chittagong, Rajshahi, Rangpur, Dinajpur and Noakhali regions and was powered mainly by technological progress @ 0.74% p.a. Most of the major crops are competitive at the producer level and major crops (rice, wheat, maize, lentil, mustard, and jute) are financially profitable with BCR ranging from 1.10–1.43. Farmers’ responses to input and crop prices are largely inelastic with a few exceptions. Efficiency levels of producing major crops are relatively high (TE > 0.70 across crops) wherein education, farm size, extension services, soil fertility and infrastructure are the main drivers. Key policy implications include price policies to improve crop prices and investments in R&D, extension services, crop diversification, rural infrastructure, farmers’ education, land and tenurial reforms to boost growth in Bangladesh agriuclture.

Knowledge Management: Report/Proceedings