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Economics of Silk Production as an Alternative Source of Income in the Rural Areas of Bogra District

B B Siddiq
Exim Bank, Mymensingh, Bangladesh

M Mannaf*
Department of Agricultural Economics and Policy, Sylhet Agricultural University, Sylhet-3100, Bangladesh

J U Ahmed
Department of Agricultural Economics and Policy, Sylhet Agricultural University, Sylhet-3100, Bangladesh

M S Alamgir
Department of Agricultural Finance and Banking, Sylhet Agricultural University, Sylhet-3100, Bangladesh

Abstract/ Executive Summary:

The study was conducted to elucidate the profitability of silk production. Six adjacent villages of Dhunat upazila of Bogra District were selected purposively for this study. A total of 60 sample farmers were selected randomly of which 35 were small, 19 were medium and another 6 were large farmers. Both tabular and statistical techniques were used in the study. A large number of labourers were employed in the sericulture activities. Cocoon production per 100 Disease free laying (DFL) employed about 11 man-days for producing cocoon and 100 percent of the labourers were female. Gross return of small, medium and large group of farmers were calculated at Tk. 3712, 4537.5 and 5467, respectively per 100 DFL. Total costs of cocoon production for the same three categories of farmers were estimated Tk. 1831, 1972 and 2318, respectively per 100 DFL and their corresponding gross margins were Tk. 2781, 3555.5 and 4229, respectively per 100 DFL. Net returns of cocoon production were calculated at Tk. 1881, 2565.5 and 3145 for small, medium and large farmers, respectively per 100 DFL and the corresponding undiscounted Benefit Cost Ratio (BCR) came out to be 2.03, 2.30, and 2.35, respectively. Net return of all farmers was Tk. 2530.16 per 100 DFL and BCR was 2.31 which showed that cocoon production is profitable in the study areas.

Keywords: Silkproduction, Livelihood, Income generation, Benefit cost analysis, Profitability.

Location: Rural Areas of Bogra District

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Silk

Objectives:

The specific research objectives set for the study were as follows: i) To find out the socioeconomic conditions of the silk producing households; ii) To determine the cost structure and profitability of silk production, and iii) To identify the problems and constraints in silk production.

Methodology:

Although silk is produced in many districts of Bangladesh, Bogra district was selected for this study purposively. Keeping in view the objectives of the study as well as time and resource constraints and on the basis of higher concentration of silk production, Mathpara, Matikora, Ghukrapara, Hashkhali village under Dhunot upazila of Bogra district were purposively selected for the study. A total of 60 farmers were selected using stratified random sampling technique for data collection. Selected respondents were classified in small, medium and large according to their production size. However, the farmers who produced below 60 kg cocoon in a production period were considered as the small farmers, who produced 60-120 kg cocoon in a production period were considered as the medium farmers and who produced above 120 kg cocoon in a production period were considered as the large farmers. The data were collected from the silk producers through field survey. It may be noted here that production of silk possesses some cycle (silkworm rearing, reeling, drying, weaving, etc.) and all of these could not be considered in this study because of both time and resource constraints. Keeping this view in mind, only the cocoon production cycle is being considered in this study. Descriptive statistics (i.e., sum, average, percentages, ratios, etc.) were employed to achieve the objectives. Profitability of silk production from the view point of individual farmers was measured in terms of gross return, gross margin, net return and benefit cost ratio.

Source of Information: J. SylhetAgril. Univ. 2(2):289-300, 2015 ISSN: 2308-1597

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Since silk production is a relatively new in Bangladesh but its production is profitable. It was observed that the large farmers earned higher profit compared to small and medium farmers. Due to the differences in price received by the large farmers for the better quality product they earn highest amount of profit. Furthermore, silk production is labour intensive activity; it would help create employment opportunities. Incentives to produce more skill will create additional employment opportunities for the labours. So, it is necessary to make the farmers aware about efficient use of resources. After production of silk, total household income of rural people increased significantly which enabled them to spend more on the basic items such as food, education, clothing, health care and housing compared to before. It indicates that livelihood and standard of living of silk farmers to some extent improved. If modern inputs and production technology could be made available to the farmers in time, yield and production of silk may be increased which can help the farmers to increase income and improve their livelihood conditions

Knowledge Management: Journal