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A Study on Brinjal Production in Jamalpur District Through Profitability Analysis and Factors Affecting the Production

M. Z. Rahman
Department of Agricultural Economics and Department of Animal Science, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

H. Kabir*
Department of Agricultural Economics and Department of Animal Science, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

M. Khan
Department of Agricultural Economics and Department of Animal Science, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

Abstract/ Executive Summary:

The objectives of this research study are to identify and measure the impact of the factors on brinjal production and to calculate the profit of brinjal production. Primary data collection was carried out at three villages of Islampur Upazila under Jamalpur district. Cobb-Douglas production function was applied to determine the effects of inputs on brinjal production. Human labor, seed cost, MP cost and pesticides have significant impact on brinjal production. The most important factor for variation in costs as identified was human labor and chemical fertilizers cost. Net return and cash margin of brinjal production were BDT 303,358 and BDT 345,415 per ha, respectively while the profit per Kg was BDT 6.63.Thus, Brinjal is a highly profitable enterprise. This study also identified some problems faced by farmers for producing brinjal like insects affect, lack of capital, lack of quality seed, lack of storage facilities, marketing problems. Thus more research and extension service can be adopted to solve the problems in order to increase production and ensure the nutritional food value in Bangladesh.

Keywords: Brinjal, Factor, Profitability

Location: Three villages of Islampur Upazila under Jamalpur district

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Brinjal

Objectives:

i) To estimate the costs, returns and profitability of brinjal production; and ii) To determine the factors affecting the economic returns of brinjal production

Methodology:

Location of study, sampling technique and sample size Jamalpur is one of the most brinjal producing districts in Bangladesh where Islampur Upazila is most famous for its production and fulfill the demand within country and abroad. Islampur is a place of surplus brinjal producing areas in Bangladesh. The research on profitability and factor influence on the gross return on brinjal production in these particular places have not been conducted. Total 60 number of sample were selected from three villages of Islampur Upazila under Jamalpur district. Random sampling technique was applied for selecting the brinjal producers in the same areas. To identify the factors affecting the gross return on brinjal production, the Cobb-Douglas production function has used: lnY = lnbo + b1lnX1 + b2lnX2 + b3lnX3 + b4lnX4 + b5lnX5 + b6lnX6 + b7lnX7 + b8lnX8
where, X1 = Cost of human labor per hectare (Taka), X2= Cost of seed/seedling per hectare (Taka), X3= Cost of power tiller per hectare (Taka), X4 = Cost of urea per hectare (Taka), X5 = Cost of DAP per hectare (Taka), X6 = Cost of MP per hectare (Taka), X7 = Cost of irrigation per hectare (Taka), X8 = Cost pesticide per hectare (Taka). b0= Intercept and b1…….b8= parameters. Cost and return analysis Cost and return analysis considered variable cost and fixed cost. To achieve the objective of the study, simple tabular analysis was used to determine the profitability of brinjal growers. Following profit equation was used to assess the profitability of production. Net return of brinjal producer Π = PF.QF — (TVC+TFC) Where, π = Profit of brinjal producer per hectare per year PF = Per unit price of brinjal, QF = Quantity of brinjal, TVC = Total variable cost, TFC = Total fixed cost Cost of production was calculated by using the following formula i) Operating capital was considered as the sum of total variable cost. ii) Interest on operating capital = Operating capital* rate of interest* time consider (months)/(100*14*2), Interest rate =14% iii) Total variable cost (Tk./ ha.) was the total cost of variable inputs iv) Total fixed cost = Land use cost + interest on operating capital v) Land use cost = As per lease value of the study areas in hectare. vi) Total cost of production = Total variable cost (Tk/ha) + Total Fixed cost (Tk/ha) Gross Return Gross return was calculated simply by multiplying the total volume of output by its per unit of price in the harvesting period. The following equation was used to estimate gross return (GR): GR = Pb. Qb Where,GR = Gross return from product, Pb =Price of Product, Qb = Quantity of Product. Gross margin Calculation of gross margin was done to have an estimate of the difference between total return and variable costs. The argument for using gross margin analysis is that the farmers are more interested to know their return over variable cost. The following equation was used to assess the gross margin: GM = TR — VC, Where, GM=Gross Margin, TR=Total Return, VC=Variable Cost

Source of Information: Bangladesh Agril. Univ. 14(1): 113–118, 2016 ISSN 1810-3030

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Brinjal is a nutritious vegetable as well as people have easy access to mitigate their demand on its round the year in Bangladesh. This research is to promise to find the factors effect on brinjal production and estimate the profitability of brinjal production at Islampur upazila of Jamalpur district. Islampur upazila of Jamalpur district is a famous for brinjal production since long time. The selected areas are typically remote areas of Jamalpur while the family size was 4.80, lion share of people are professionally dependent on agriculture and mostly farmers are illiterate. The research found that brinjal production is a profitable enterprise. Human labor, seed cost, MoP and pesticides cost are statistically significant effects on brinjal production. Costs of human labor and chemical fertilizers were occupied the major share of total cost of brinjal production. According to BCR calculation, the benefit of brinjal production at the sample area was three times more compare to the total cost. Though it is a profitable business, it could have more extended the business if the farmers are having close contact with the agricultural extension services, getting good marketing and transport facilities.

Knowledge Management: Journal