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Profitability Level of Betel Leaf (piper Betel L.) Cultivation in Some Selected Sites of Bangladesh

Q. M. S. Islam
Principal Scientific Officer
Agricultural Economics Division, Bangladesh Agricultural Research Institute (BARI), Gazipur, Bangladesh

M. A. Matin
Chief Scientific Officer
Agricultural Economics Division, Bangladesh Agricultural Research Institute (BARI), Gazipur, Bangladesh

Abstract/ Executive Summary:

The study was conducted in three betel leaf growing districts, namely Noakhali, Rajbari and Khulna during 2015-16 to assess the agronomic practices, profitability and to explore the constraints to betel leaf cultivation. The study revealed that betel leaf cultivation was profitable, although benefit cost ratio (BCR) in the first and second year were below one due to high investment cost and low yield. The highest yield and gross return were received by the farmers in the fourth year. The BCR was found highest in fourth year followed by third year and fifth year. The BCR at 12%, 15% and 20% rate of interest were 1.16, 1.15 and 1.14, respectively. IRR was 59% in current situation, 42% by 5% decrease of return and 52% by 5% increase of cost. The result indicated that betel leaf cultivation was profitable under changing situation of sensitivity analysis. Farmers faced some constraints like leaf rot disease, high price of boroj materials, non-availability of modern variety, low price of betel leaf, high price of oilcake, vine died, lack of capital, etc. Therefore, breeders should take initiative to develop high yielding varieties of betel leaf and pathologist may conduct research on betel leaf for controlling diseases.

Keywords: Betel leaf, BCR, IRR, NPV, Constraints

Location: Noakhali, Rajbari and Khulna

Start Date: 00-00-2015

End Date: 00-00-2016

Program Area: Socio-economic and Policy

Commodity: Betel leaf

Objectives:

The present study was undertaken with the following specific objectives:
i.   To examine the agronomic practices of betel leaf cultivation.
ii.   To find out the profitability level of betel leaf cultivation.
iii.   To explore the constraints of betel leaf cultivation.

Methodology:

Sampling technique: Multi-stage sampling technique was followed for the study. Three betel leaf growing districts namely Noakhali, Rajbari and Khulna were selected purposively in east, mid-western and western areas of Bangladesh. Previously in others studies another 6 betel leaf growing areas were considered. Again from each district three upazilas were selected considering the concentration of betel leaf growers and easy access. From each upazila one block considering intensive betel leaf growing area was selected with consultation of Upazila Agriculture Officer. A list of betel leaf growers from the selected block were collected with the help of DAE personnel. Thus a total of 3 x 3 x 15 = 135 samples were randomly selected for the interview.
Method of data collection: Data were collected by the experienced field investigators with direct supervision of the researchers using a pre-tested interview schedule.
Analytical technique: Data were categorized according to the year of cultivation. The age of the boroj were classified like 1st year, 2nd year, 3rd year, 4th year, 5th year, 6-10th year and 11-20 th year. Collected data were edited, summarized, tabulated and analyzed to fulfill the objectives of the study. Tabular methods of analysis using descriptive statistics like average, percentage, ratio etc. were followed in presenting the results of the study. For measuring capital productivity, costs and returns were discounted at 12 %, 15% and 20% rate of interest. The BCR, NPV and IRR in betel leaf cultivation were calculated. To make a valid generalization it was necessary to conduct sensitivity analysis. These tables have been reworked separately in this section to see what happens on the profitability of betel leaf under the varying conditions. For all the study areas, all costs of the betel leaf were considered constant while benefit decreases at the rate of 5% or if benefit of the betel leaf remains the same but all costs increase at the rate of 10% then what would be the outcome.

Source of Information: Bangladesh J. Agril. Res. 42(2): 343-351, June 2017 ISSN 0258-7122 (Print), 2408-8293 (Online)

Article Link (Online Journal):

Funding Source:

1.

Budget:

Total Budget (Tk.) :

Achievement/Findings:

All the betel leaf farmers in the study areas cultivated local varieties. The benefit cost ratio, net present worth and internal rate of return indicate that betel leaf cultivation is profitable for the farmers in the study areas. Sensitivity analysis also indicates that the betel leaf farmers can earn profit under changing situation. Cultivation cost of betel leaf is very high mostly due to more use of labour and high price of boroj materials. Farmers faced various constraints like, leaf rot disease, high price of boroj materials, non-availability of modern variety, low price of betel leaf, high price of oilcake, vine mortality, lack of capital etc. Pathologist may conduct research on betel leaf for controlling diseases. It is also imperative to carry out more research on developing high yielding varieties of betel leaf and to develop appropriate production technologies for maximizing the yield as well as profit. Strengthening to popularize the BARI released varieties of betel leaf and to expand the cultivation area.

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