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Profitability Comparison Between Boro Rice and Maize Production in Dinajpur District

Rozina Yeasmin
Department of Economics, Hajee Mohammad Danesh Science & Technology University, Dinajpur 5200, Bangladesh

Mohammad Saidur Rahman
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh.

Mohammad Ismail Hossain
Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh.

Abstract/ Executive Summary:

The study focuses on comparing technical efficiency and profitability between Boro rice farmers and maize farmers in Dinajpur district consisting of 150 randomly collected samples which are analyzed with statistical software STATA 12.0 version. Stochastic Frontier Analysis (SFA) is used to accomplish the first objective where it is found that the maize farmers are efficient compared to boro-rice farmers. The deviation of the mean technical efficiency is estimated at 0.09. In addition maize farmers are also more profitable than boro-rice farmers estimated with a benefit Cost Ratio (BCR) of1.08 is for boro-rice and 1.26 is for maize production. The net profit for boro-rice is estimated as 10,527.60 Tk./ha whereas 28,966.40 Tk./ha for maize producers. However mean technical efficiency of boro-rice (0.44) and maize (0.53) cultivation clearly indicates that better utilization of resources will raise the efficiency and profitability for both crops production.

Keywords: Technical efficiency, Profitability, Boro rice, Maize

Location: Upazilas namely Birganj, Chirirbandar and Dinajpur sadar upazila of Dinajpur district

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Rice, Maize

Objectives:

To compare the technical efficiency and relative profitability between boro-rice and maize cultivation in the selected areas of Dinajpur district.

Methodology:

This study was conducted covering three upazilas namely Birganj, Chirirbandar and Dinajpur sadar upazila of Dinajpur district consisting of 150 sampled farmers which were randomly selected and the data were analyzed by statistical Software STATA version 12.0. Analytical Technique- Cobb-Douglas Production Function is taken as stochastic functional form for resource use efficiency in this present study which shows a functional relationship between inputs and outputs. Where Y = level of output, L and K = Labor and Capital are variable inputs, A = multiplicative constant, β₁and β₂ are the coefficient of L and K and they represent the elasticity of the respective factors of production, and e = error term. By linearizing with double-log form, the function is as Ln Y_i = β₀ + β₁ Ln X_1i + β₂ Ln X_2i + β₃ Ln X_3i + β₄ Ln X_4i + β₅ Ln X_5i + β₆ Ln X_6i + β₇ Ln X_7i +β₈ Ln X_8i + β₉ Ln X_9i + β₁₀ Ln X_10i + v_i - u_i; Where, Ln = Natural logarithm; Y_i = Yield of the i-th farm (kg/ha); X_1i = Land area (Hectare); X_2i = Human labour used by the i-th farm (man-days/ha); X_3i = Seed used by the i-th farm (kg/ha); X_4i = Urea used by the i-th farm (kg/ha); X_5i = TSP used by the i-th farm (kg/ha); X_6i = Murate of Potash (MoP) used by the i-th farm (kg/ha); X_7i = Manure by the i-th farm (kg/ha); X_8i = Irrigation cost of the i-th farm (Tk./ha); X_9i = Pesticide used by the i-th farm (ml/ha); X_10i = Cost of tractors used (Tk./ha); v_i -u_i = error term. Technical Efficiency- Technical efficiency of a farmer can be referred to the ratio of observed output to the frontier output, given the quantity of resources employed by the farmer. Then technical inefficiency can be considered as the indication at which the yield lies below the frontier one (Awunyoet. al., 2016).

Source of Information: Res. Agric., Livest. Fish.8(1): 51-56, April 2021

Article Link (Online Journal): DOI: https://doi.org/10.3329/ralf.v8i1.53267

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

It can be concluded that the sampled maize producers in the Dinajpur district are more efficient and making a profit compared to boro rice producers in the study areas. Along with these results environmental and soil fertility advantages, the farmers of this district are shifted more on the production of the maize rather than boro-rice. It has also been seen that the per hectare production of boro rice is more expensive compared to maize. The technical efficiencies of both crop production indicate that it can be raised more by proper utilization of resources and better management of technical knowledge of the farmers.

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