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Economic Analysis of Khirshapati (mangifera Indica L.) Mango Cultivation in Selected Areas of Bangladesh

Muhammad Shahrukh Rahman
Agricultural Economics Division, Bangladesh Agricultural Research Institute, Joydebpur, Gazipur-1701, Bangladesh

Mashrufah Khatun
Department of Agricultural Finance, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

Abstract/ Executive Summary:

The study was conducted to assess the profitability of Khirshapati variety mango cultivation and to analyze factors affecting productivity of this variety in four districts namely Khagrachori, Bandorban, Naogaon, and Satkhira of Bangladesh during February to March, 2018. Data were collected from 72 mango orchards using random sampling method. Descriptive statistics, profitability analysis and Cobb-Douglas type production function was used to analyze data. The per hectare gross cost, gross return and net return were Tk. 507817,Tk. 72,8419 and Tk. 22,0602 respectively for the 6-7 years of Khirshapati mango orchard. Net present value was Tk. 65,343 and benefit cost ratio was 1.16 which ensure that investment in mango cultivation is financially feasible. Mango cultivation was also found to be a profitable enterprise since internal rate of return was 20%.The functional analysis indicates that per hectare yield were significantly positively influenced by age of the orchard, number of tress and amount of fertilizer. The results also show that area and amount of manure had significant negative effects. So a proper initiative should be taken to disseminate this information among the mango growers to sustain the yield of Khirshapati mango in Bangladesh.

Keywords: Mango, Khirshapati, Profitability, Production function, Rates of return

Location: Khagrachori, Bandorban, Naogaon, and Satkhira of Bangladesh

Start Date: 00-02-2018

End Date: 00-03-2018

Program Area: Socio-economic and Policy

Commodity: Mango

Objectives:

To assess the profitability of Khirshapati mango cultivation and also to estimate the factors affecting the productivity of Khirshapati mango orchard

Methodology:

Primary data were collected from four districts namely Khagrachori, Satkhira, Bandarban, and Naogaon of Bangladesh by using interview schedule during the month of February to March, 2018. A preliminary survey was conducted in Sadar Upazila of Khagrachori district for pre-testing the survey schedule. Two Upazilas from each district were purposively selected for selecting sample orchards. A total of 72 mango orchards were randomly selected for the study. Descriptive Statistics: Descriptive statistics i.g. sum, average and percentages were used to analyze the data. Statistical technique: The profitability of mango production was measured by the following analytical techniques as did in Rahman et al. (2019). Capital budgeting Capital budgeting is the decision making process by which an organization evaluates its capital investment. For proper evaluation, time value of money is important. There are three capital budgeting methods considering time value of money which are NPV, BCR and IRR (Pandey, 2005). These methods are discussed below.

Source of Information: Res. Agric. Livest. Fish. Vol. 6, No. 1, April 2019 : 35-43.

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Khirshapati mango cultivation is profitable in the study areas because it gives higher net return. Major costs were incurred for hired labor, cost of saplings and insecticides. Based on the results of BCR, NPV and IRR, it signifies that Khirshapati mango cultivation has a good potentiality in Bangladesh. It is also found that the coefficient of age, area, number of trees, manure and fertilizer have significantly impact on yield of mango. As mango cultivation is a profitable enterprise so the combined efforts of government and other research institutions are essential to expand mango production. Thus the present study might be useful for the researcher, policy makers and to other concerned authorities for conducting further research and formulating appropriate policy for widespread cultivation of mango in Bangladesh

Knowledge Management: Journal