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The Economic Impact of Onion Research and Extension in Bangladesh: an Ex-post Analysis

Md. Kamrul Hasan
Senior Scientific Officer
Spices Research Centre, Bangladesh Agricultural Research Institute, Shibganj, Bogura, Bangladesh

K.M. Khalequzzaman
Principal Scientific Officer (Plant Pathology)
Spices Research Centre (SRC), Bangladesh Agricultural Research Institute (BARI), Shibganj, Bogura, Bangladesh

Abstract/ Executive Summary:

The study estimated the benefit and rates of returns to investment on onion research and development in Bangladesh. The Economic Surplus Model with ex-post analysis was used to determine the returns to investment and their distribution between the production and consumption. Several discounting techniques were also used to assess the efficiency of onion research. The adoption rate was found increasing trend over the period. The yield of BARI Developed Modern varieties of onion was 67 to 80% higher than those of the local variety. Society got net benefit Tk 36356.64 million from the investment of onion research and extension. The internal rate of return (IRR), net present value (NPV) and benefit cost ratio (BCR) were estimated to be 82%, Tk 6536.86 million and 23.99 respectively. The results of sensitivity analysis indicated that investment in research and development of onion was a good investment.

Keywords: Onion, economic impact, adoption, yield advantage, Benefit and rate of return

Location: Data were collected from different sources like published and unpublished reports, and informal scientist’s interview. The area, production, and yield of BDMVs (BARI Developed Modern Varieties) of scientist’s interview; and harvest price and consumer price index (CPI) were collected from various issues of Statistical Yearbooks (1988-2009) published by the Bangladesh Bureau of Statistics.

Start Date: 01-07-2014

End Date: 30-06-2015

Program Area: Socio-economic and Policy

Commodity: Onion

Objectives:

The present analysis thus took into the benefits from past onion research and its farm level extension in the country. However, this study provided information for the policy makers, donors, researchers, extension people and the public on the contribution and the rate of return to investment in onion research in Bangladesh.

Methodology:

For the present study, data were collected from different sources like published and unpublished reports, and informal scientist’s interview. The area, production, and yield of BDMVs (BARI Developed Modern Varieties) of onion were collected from SRC (Spices Research Centre); adoption rates were collected through informal scientist’s interview; and harvest price and consumer price index (CPI) were collected from various issues of Statistical Yearbooks (1988-2009) published by the Bangladesh Bureau of Statistics. The adoption of an intervention by farmers, such as an improved variety usually means one of two things: (i) A farmer can supply more of the commodity using the same level of resources (i.e, same land area and other inputs), or (ii). A farmer can supply the same level of commodity output but do it with fewer resources. The total social benefits to society from the adoption of an intervention is the summation of the change in consumer surplus plus the change in producer surplus (Area abc + Area Oac) minus the input cost change from adopting the new interventions.

Source of Information: Nippon Journal of Environmental Science, 1(8): 1020 (1-12)

Article Link (Online Journal): https://nipponpub.com/wp-content/uploads/2020/12/NJES-1020.pdf

Funding Source:

1. Government

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The adoption rate was found increasing trend over the period. The yield of BARI Developed Modern varieties of onion was 67 to 80% higher than those of the local variety. Society got net benefit Tk 36356.64 million from the investment of onion research and extension. The internal rate of return (IRR), net present value (NPV) and benefit cost ratio (BCR) were estimated to be 82%, Tk 6536.86 million and 23.99 respectively. The results of sensitivity analysis indicated that investment in research and development of onion was a good investment.

Knowledge Management: Journal