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Financial Analysis of Major Crops with and Without Ipm Technologies

Dr. Md. Nazrul Islam
Deputy Secretary
Deputy Secretary Ministry of Finance, Bangladesh Secretariat, Dhaka 1000

Dr. M. Kamruzzaman
Professor
Professor Department of Agricultural Economics Bangabandhu Sheikh Mujibur Rahman Agricultural University, Gazipur 1706

Dr. B A A Mustafi
Director (Retired) Bangladesh Rice Research Institute, Gazipur
Director (Retired) Bangladesh Rice Research Institute, Gazipur

Abstract/ Executive Summary:

Pesticides are being widely used by the farmers, especially by the Boro rice and vegetable growers in Bangladesh. As obvious,the pesticides have some undesirable effects on environment, human and animal health. So, like many other countries,Bangladesh has introduced integrated pest management (IPM) technology to overcome these problems.There is a growing need of information about the comparative studies, on the effects of pesticide application and non-application in crop production. Therefore, this study focused on the detailed financial analysis by comparing between IPM and non-IPM technologies in the cultivation of major agricultural crops in terms of above mentioned economic parameters in four regions namely,Jessore, Comilla, Narsingdi and Bogra of Bangladesh. The data were collected during 2011-2012 from 480 sample farmers using interview schedule.The present study revealed that, IPM farmers incurred less variable costs and total costs and obtained higher gross return, gross margin, net return and benefit cost ratios than the non-IPM farmers in rice and vegetable production. From the partial budgeting analysis of IPM adopting farmers versus IPM non-adopting farmers, it is found that, the IPM technology in rice, summer and winter vegetable production system is more profitable than the non-IPM system.

Keywords: IPM Technology, Financial analysis, Boro rice, Summer vegetable, Winter vegetable,

Location: Jessore, Comilla, Narsingdi and Bogra

Start Date: 00-00-2011

End Date: 00-00-2012

Program Area: Knowledge Management

Non-commodity: IPM

Objectives:

1.To determine the effects of pesticides on crop production, human health and the environment.

2. To investigate on the financial implications of major crops with and without IPM technology

Methodology:

The present study was conducted at Jessore, Comilla, Narsingdi and Bogra regions. The study area were selected in view of the intensity of the growth of the five major crops and adoption of non-IPM and IPM technologies, socio-economic conditions of the respondent farmers, market accessibility of the produces and communication facilities etc. Crops selected were,Boro rice from cereal crops, Brinjal and bitter gourd from summer vegetables and, country bean and tomato from winter vegetables.Considering the above mentioned aspects, one Upazila from each district were finally selected for the collection of data. After selection of the study area, a list of the farmers from each Upazila of selected districts was prepared with the help of Upazila Agriculture officers and other extension personnel. Thereafter, the farmers were categorized into two groups; namely (a) the non-IPM farmers who controlled pests only by spraying pesticides, and (b) the IPM farmers who followed IPM strategy to control pests in their crop fields. From each group 20 farmers, cultivating boro rice, 10 farmers cultivating brinjal, 10 farmers cultivating bitter gourd, 10 farmers cultivating country bean and 10 farmers cultivating tomato were selected by randomised sampling technique. Thus taking as many as 60 farmers from each group, the number of sample farmers totalled (60 non-IPM + 60 IPM) 120 in each district and thereby the total number of sample farmers in four districts became (120 X 4=) 480.

Source of Information: 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:

The present study reveals that IPM farmers incurred less variable costs and total costs and obtained higher gross return, gross margin, net return and benefit cost ratios than the non-IPM farmers in rice and vegetable production. From the partial budgeting analysis of IPM adopting farmers versus IPM non-adopting farmers, the IPM technology in rice, summer and winter vegetable production system was more profitable compared to non-IPM system.

Knowledge Management: Report/Proceedings