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Economics of Green Leaf Cultivation of Small Tea Growers in Some Selected Areas of Panchagarh District

Jiban Krishna Saha
Department of Agricultural Finance and Banking, Sylhet Agricultural University

Subrata Koiry
Department of Agricultural Finance and Banking, Sylhet Agricultural University

Abstract/ Executive Summary:

The present study was conducted to assess the profitability and constraints of green leaf cultivation of small tea growers in Panchagarh district. Descriptive statistics was used to achieve the objective of the study. Simple random sampling method was used to collect data from 50 small tea growers through direct interviewing. The study showed that on average per kilogram cost of green leaf was Tk.12.15 and Tk.12.86 on the basis variable and fixed cost basis respectively. The average per kilogram gross margin of green leaf was found to be Tk.19.85. But on the other hand on average, per kilogram net benefit of green was Tk.19.14. The benefit-cost ratio was 2.49 indicating that 1 taka investment resulted in a benefit of Tk.1.49. The constraint of green leaf cultivation among the small farmers were lacking of knowledge in plucking, inappropriate application of fertilizer and improper knowledge in pruning and techniques in cultivation. The cultivation of green leaf among small farmers in the Panchagarh district was profitable. Therefore, to overcome the constraints it is necessary to improve the knowledge of farmers for tea cultivation through intervention and by organizing training on fertilizer use and access to Bangladesh Tea Research Institute advisory services regarding tea cultivation practices.

Keywords: Small farm, Green leaf, Profitability, Constraint

Location: Panchagarh District of Bangladesh

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Tea

Objectives:

Hence, the proposed study is expected to generate a number of vital information useful for the planters as well as policy planners to guide the tea industry in Panchagarh district which is at present indispensable for the overall development of the tea industry as well as earning of foreign currency for the country. Therefore, the specific objectives of this study are: i. to assess the profitability of green leaf tea production, ii. to find out the constraint which affects the production of green leaf cultivation and iii.to draw policy recommendations for the development of green leaf cultivation in Panchagarh district

Methodology:

The present study was based on primary data collected through a face-to-face interview by using the structured interview schedule. A total of 50 small tea growers were selected using simple random sampling from the villages Autaria, Bhajanpur and Tetulia of Panchagarh district during the year 2018-19. The villages were selected due to intensive cultivation of tea in that particular area. Data were collected from the farmers whose cultivated area was from 0.50 acres to 2.49 acres of land (BBS, 2019). The farmers in the study area planted clonal variety of Bangladesh Tea variety 2 (BT2), and Tocklai Variety 29 and 30 (TV29 and TV30).Both tabular and descriptive statistics were used to analyze the collected data. To calculate the economical performance of green leaf cultivation of small tea growers descriptive statistics such as the average, percentage and profit equation was used in this study.

Gross margin: Gross margin was calculated among the difference between gross return and total variable costs. That is, GM= GR-TVC Where, GM= Gross margin, GR= Gross Return, TVC= Total variable cost.

Profit Equation To determine the profitability of green leaf cultivation, every cost and return item were included. The profit was calculated by the following formula, GM = GR –TC

Where, GM = profit; GR = Gross return; TC = Total cost. TC is the summation of the total variable cost and total fixed cost

Benefit-Cost Ratio (BCR)

The BCR is a relative measure, which is used to compare benefits per unit of cost. The BCR was estimated as a ratio of gross returns and gross costs. The formula calculating BCR (undiscounted) was as such: Benefit-Cost Ratio = Gross benefit / Gross cost.

Source of Information: Bangladesh Journal of Extension Education, Volume 32: 2020 (Special Issue)

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The current situation of tea production in Panchagarh district is profitable. Farmers established their tea field for their source of income earned as well as to produce quality tea. But in the study area, farmers used over doses of chemical fertilizer than the recommended doses of BTRI and did not follow the proper plucking practices Tea was labor intensive at Panchagarh and the benefit cost ratio (BCR) indicated that tea cultivation was profitable despite of having some constraints. The most important point is to maintain quality awareness of plucking among the growers. The essential practices for maintaining fine leaf and the health of the bush and its economics are to be explained so that quality augmentation programs should be implemented in the field. The lack of technical knowledge and absence of scientific cultural practices of tea cultivation has been observed to be the highest constraints against productivity improvement in the small growers’ plantations. Therefore, the need of intervention is necessary and can be done by arranging training program for improvement of skill and knowledge in cultivation of tea and in cost management in the field. Even, the respected authorities like Bangladesh Tea Board , Bangladesh Tea Research institute or non-government organizations can manage advisory services for farmers to improve the knowledge of farmers in terms of cultivation practices and related operations so that farmers can maintain profitable tea production over time in Panchagarh.

Knowledge Management: Journal