Agricultural Research Management Information System

Home
Research Summary
Search
About Us
- ARMIS
- Brochure
Contact Us
Report
User Request
Data Input
Help
- Operation Manual
  - PDF
  - Video
- Program Area & Commodity
We have reached 37600 number of research entries at this moment.

- Logout

Research Detail

Home
Research
Detail

Impact of Rapeseed and Mustard Research and Extension in Bangladesh

M. K. Hasan
Senior Scientific Officer
On-Farm Research Division, BARI, Joydebpur, Gazipur-1701, Bangladesh.

M. A. Monayem Miah
Scientific Officer
Agricultural Economics Division, BARI, Joydebpur, Gazipur-1701, Bangladesh.

Abstract/ Executive Summary:

An ex-post rate of return analysis was conducted to estimate economic returns to investments in the varietal research and extension of rape seed and mustard in Bangladesh. Distribution of social benefits among the producers and consumers of rapeseed and mustard is also determined using an economic surplus model. Several discounting techniques are used to assess the efficiency of the program. An internal rate of return (IRR) of 26% and a net present value (NPV) of Tk. 2.94 billion were estimated for rape seed and mustard research and extension services. The benefit-cost ratio (BCR) was calculated at 2.96. The internal rate of return was found to be satisfactory as compared to other rate of returns estimated for cereal and fibre crops in Bangladesh. Due to perfectly elastic demand, the benefits gained from the program goes to the producers' baskets in terms of producers' surpluses. whereas the consumers' surpluses were found to be zero over the years of the program. Sensitivity analysis revealed that the IRR, BCR and NPV of the program ranged from 17% to 30%, 1.29 to 4.06 and Tk. 1.13 billion to Tk. 4.26 billion, respectively, under various assumptions on the supply shifter and the research and extension expenditures. The increase in production due to high yielding varieties also produced foreign exchange savings of Tk. 11.14 billion because of the cut in import of edible oils.

Keywords: Rapeseed, Mustard, Impact of research, Impact of extension

Location: Oilseed Research Centre, BARI.

Start Date: 00-00-1977

End Date: 00-00-1998

Program Area: Socio-economic and Policy

Commodity: Mustard

Objectives:

To assess the efficiency of the varietal development program of rape seed and mustard by estimating the rate of returns, net present value and benefit cost ratio.
To estimate the distribution of benefits of the research and extension program that accrue to the producers and consumers of rapeseed and mustard.
To estimate the foreign exchange savings' from the adoption of HYV rapeseed and mustard at farmers' level.

Methodology:

There exists different approaches, such as production function model and economic surplus model to measure the returns to investment in agricultural research. In this study,a relatively straightforward method foloowed as sufficient data available in Bangladesh to make the model operational. There are two distinct parts in obtaining the rate of return to research and extension expenditures. The first is, estimating the yearly stream of benefits in monetary forms that flows from modern varieties. This was done by economic surplus methodology. Once the yearly benefits had been calculated, they were then related to the yearly costs of research and extension by calculating a benefit-cost ratio or internal rate of return. The Bangladesh rape seed and mustard market produces rape and mustard domestically but also imports edible oil from the world market. A commodity that is produced domestically and traded internationally is in an open economy market. Open economy markets are characterized as being either small or large. A small open economy market is one where the amounts of exports or imports are small relative to total world trade of the commodity. Thus there is little or no effect on the world price of rape seed and mustard, when small open economy is considered. Growth rates for production, area and yield were calculated using semi-log OLS regression. Rape seed and mustard production and prices were used in the study for the period 1977-78 to 1997-98. Rape seed and mustard prices were converted to 1997-98 constant prices using National CPI. Data on varietal adoption was collected from various secondary sources and based on perceptions of scientists and extension personnel working with oilseeds. Several varietal adoption surveys have been undertaken for various districts but the surveys have not been undertaken on a national basis each year that could provide yearly variety adoption rates for the country. Thus the existing variety survey information along with the considerable field experience of the scientists was used to sketch out the percent area sown by different rape seed and mustard varieties. The research expenditure for Oilseed Research Centre (ORC) were calculated for 1975-76 to 1997-98 period considering 5 percent of total expenditure of BARI. On the other hand, rape seed and mustard shared 50% of the total ORC expenditure. So, rape seed and mustard shared 2.5% of total BARI expenditure. Bangladesh Agricultural Research Council's (BARC) administrative expenditure also calculated at 5 % of total BARC expenditure. Department of Agricultural Extension's (DAE) expenditure was calculated at 2.01 % of its total expenditure as rape seed and mustard covered 2.01 % of total cropped area. The research and extension expenditure were converted to 1997-98 constant prices using National CPI.

Source of Information: Bangladesh J. Agril. Res. 28(1) : 15-31, March 2003, ISSN 0258-7122

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The results of this study indicated that the, varietal research and extension of rape seed and mustard is a lucrative public investment opportunity. The government and donors should continue their investments in such varietal research program so that more new high yielding varieties could be released in future and more and more foreign exchange savings could occur.

Knowledge Management: Journal