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Farmer’s Profitability of Potato Cultivation at Rangpur District: the Socio-economic Context of Bangladesh

Abu Zafar Ahmed Mukul
Department of Management & Finance, (SAU), Dhaka, Bangladesh.

Shah Johir Rayhan
Department of Management & Finance, (SAU), Dhaka, Bangladesh.

Mohammad Masudul Hassan
Faculty of Agribusiness Management, (SAU), Dhaka, Bangladesh.

Abstract/ Executive Summary:

Potato is one of the food-stuffs of the most people of the world as well as Bangladesh. This study was conducted to ascertain the cost of production and profitability of potato producers at Rangpur district. Data collected from 30 farmers using simple random sampling technique. The potato farmers showed individual differences in their socio-economic characteristics and absolute majority of them belonged to young age category (20-35 years ) having medium family size, illiterate, medium farm size (0.34- 1.0 acre), ( 1- 10 years) farming experience. Most of the respondents used cardinal variety of potato seed and sell their output at home. Farmers who sell potato in the market were more profitable than others. The study also designates that the large farmers were most profitable compared to others. Major problem faced by the potato farmers were lower price of potato during harvesting period, price fluctuation , shortage of capital, high charge of cold storage, lack of good quality seed, perishability of potato, poor storage facility, higher price of inputs and lack of marketing facility etc. Proper steps should be postulated by Government to puzzle out this problem. The determinations of the study will generate basic economic data on the production practices of potato. At long last it will be helpful to the planners and policy makers in contriving micro or macro level policy for the enlargement of potato production in the country.

Keywords: Seed Variety, Cost of production, Farming Experience, Place of sale, Net profit

Location: Rangpur district.

Start Date: 00-00-2012

End Date: 00-00-2013

Program Area: Socio-economic and Policy

Commodity: Potato

Objectives:

• To determine the socio-economic characteristics and profitability of potato production across farm size.

• To determine the problemsand suggest policy measures for improvement of potato production in Bangladesh.

Methodology:

Rangpur district was selected purposively as the study area because, this district is one of the leading potato producing area of Bangladesh. Rangpur sadar Sub-district was selected randomly from the 7 Sub-district of Rangpur districts as the study area. A preliminary survey was conducted in some villages of Rangpur sadar Sub-district to gather primary knowledge about the potato production, productivity and efficiency of the potato growers. After preliminary visit three village’s namely Utttor Tumpat, Dhakin Tumpat and Hajirhat were selected randomly as the study area. Most of the farmers in these villages used to produce high yielding varieties of potato and sell their product to different middlemen. The main criteria behind the selection of the Sub-district were as follows: • The selected Sub-district was a good vegetable producing area. • The researcher is familiar with the language, living, beliefs, and other socio-economic characteristics of the villages of this Sub-district. • Previously such type of study was not conducted in this area. Data for the study were collected from winter and summer season of 2012-2013. A random sampling technique was applied for selecting sample. Through random sampling 30 farmers were selected for the study. Among the 30 farmers, 6 were small,17 were medium and 7 were large. Farm size was arbitrarily classified on the basis of their land where they produce potato and other crops. Farmers having 0.01 -0.33 acre considered as small, 0.34-1.00 acre as medium farmers while those having above 1.00 acre as large farmers.The study is involved in collection of data both from the primary and secondary sources. Different types of data and their sources are discussed under the following heads: Primary Data: Primary data were collected by the researcher themselves through personal interview wi th the respondents. To attain accuracy and reliability of data, care and caution were taken in data collection. The researcher’s took all possible effort to establish a congenial relationship with the respondents do not feel hesitation or hostile to furnish correct data. Before interviewing, the aims and objectives of the study were explained to each and every owner of the potato growers. As a result, they were convinced that the study was purely an academic one and was not likely to have an adverse effect on their business. During data collection an attention was also paid to the mood of the owners of the potato growers. Secondary Data: The secondary sources include govt, publications; annual reports on groundnut cultivation, seminar papers, journals, published and unpublished thesis, and topic reelected various books, BBS, web site et c. Processing and analysis of data: Collected data were scrutinized and summarized for the purpose of tabulation. Two techniques of analysis were used in this study, tabular and statistical. Analysis by tabular technique included socio- economic characteristics of potato farmers, classification of size of potato land, production practices, inputs used and returns of potato farmers. Statistical analysis was used to show the effect of inputs used and other related factors of potato cultivation. Enter prise costing and gross margin analysis technique was used for calculating costs and returns for potato cultivation.

Source of Information: International Journal of Economics, Finance and Management Sciences, Vol. 1, No. 3, 2013, pp. 136-144.

Article Link (Online Journal): doi: 10.11648/j.i jefm.20130103.12

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The findings of the study revealed that, net profit of potato per acre was TK. 12731. Medium farmers cultivate more land but net profit was highest for large farmers. Farmers get higher price at market than selling potato at home. Dissemination of market information should be increased so that farmers could get fair price of the potato.

Knowledge Management: Journal