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A Financial Analysis of Banana Production in Some Selected Areas of NARSingdi District

S. Bardhan
MS Student
Department of Agricultural Economics, BSMRAU, Gazipur.

M. Ahammed
MS Student
Department of Agricultural Economics, BSMRAU, Gazipur.

T. Yeasmin
MS Student
Department of Horticulture, BSMRAU, Gazipur.

M. K. Hasan
Principal Scientific Officer
BARI, Gazipur, Bangladesh.

Abstract/ Executive Summary:

The study was conducted to analyze the profitability, production practice and factors affecting the yield of banana in the pioneer district of Narsingdi.Sixty farmers were selected randomly for primary data collection. Among the three categories of farm size, large farmers used labor, fertilizer and other variable inputs more than the other two categories of farmers. The gross return was the highest for small farms as they intensively and personally supervised the cultivation process and gave more effort than the large farmers. On the other hand, the large farmers depend ed mostly on the hired labor. As a result, the gross return was highest for the small farmers. Per hectare total cost of banana production was highest for large farms and lowest for small farms. Per hectare gross margin was found highest for small farms followed by medium and large. The net return of banana also followed similar trend. The benefit cost ratio of small, medium and large farmers were recorded as 3.56, 3.20 and 2.57, respectively. Lack of adequate capital, high price of inputs, low output price, lack of quality sucker, adulteration of fertilizer and lack of technical knowledge were recorded to be the main problems faced by the banana farmers.

Keywords: Banana, Profitability, Gross margin, Net return

Location: Narsingdi district

Start Date: 00-03-2010

End Date: 00-05-2010

Program Area: Socio-economic and Policy

Commodity: Banana

Objectives:

1. To measure the relative profitability and the factors affecting the yield of banana cultivation.

2. To find out the socio-economic constraints in it's higher production.

Methodology:

Although banana is grown all over Bangladesh but Narsingdi district is the leading banana producing area of Bangladesh. There are six upazillas in Narsingdi district and on the basis of higher concentration of banana cultivation, two upazillas were selected purposively. The upazillas were Monohardi and Shibpur. From two upazillas three villages were selected randomly. The villages were Dhanua, Chalakchar and Sallabait. Then a list of banana growers in the study area was prepared through contact with the extension workers of that area. This was used as a sampling frame for this study. Using the list of banana growers a simple random sampling technique was used to determine the sample size. Considering the limitation of time and resources, a total of 60 farmers were selected for primary data collection. After collecting data, the farmers were classified into three categories i.e. small (0.02 ha to < 1.0 ha), medium (1.0 ha to < 2.0 ha) and large (2.0 ha and above). Among sixty farmers 41 were small, 13 were medium and 6 were under large farm category. The data were collected in the period of March 2010 to May 2010 both from primary and secondary sources. The researcher along with experienced enumerators collected primary data and information from banana farmers with the help of a pre-tested interview schedule. Before going to make an actual interview, the purpose of the study were clearly explained to each respondent and at the time of interview each question was asked systematically in a very simple manner and the information was recorded directly on the schedule. Data were collected in local units such as, bigha, katha etc. However, those were later converted into standard units. Some secondary data were collected from relevant books, journals and various documents of Bangladesh Bureau of Statistics. The filled up interview schedules were scrutinized and the collected data were edited and coded in order to remove ambiguities and inconsistencies. The collected data were then transferred to master sheets, compiled and summarized to facilitate tabulation. Qualitative data were converted into quantitative equivalents by means of suitable scoring. A list of table was prepared in accordance with the aims and objectives of the study. Analytical software SPSS 12 was mainly followed for analyzing the data. Simple statistical tools like count and percentages were used to obtain the results of the study. Land use cost was calculated on the basis of per year lease value of land. The profitability of banana cultivation was estimated using gross margin, net return, and benefit cost analysis. Cobb-Douglas production function was chosen to estimate the effects of key variables on production process of banana. The double log form of the Cobb-Douglas production function model proved to be a superior alternative on theoretical and econometric grounds.

Source of Information: Bangladesh J. Agriculturist. 5(1): 27-32, 2012, ISSN 1812-4631

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The result revealed banana cultivation to be highly profitable at farm level. Despite some limitations, the findings of the study confirmed that, the farmers could obtain positive net return from cultivation of banana.

Knowledge Management: Journal