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Research Detail

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SWAPAN KUMAR ROY
Markets and Livelihoods Program; Practical Action-Bangladesh, Dhanmondi, Dhaka, Bangladesh

ABDUR ROB
Markets and Livelihoods Program; Practical Action-Bangladesh, Dhanmondi, Dhaka, Bangladesh

MIKE ALBU
Markets and Livelihoods Program; Practical Action-U.K.

SHAHJAHAN ALI PRAMANIK
Markets and Livelihoods Program; Practical Action-Bangladesh, Dhanmondi, Dhaka, Bangladesh

A study was carried out to investigate the investment of a selected agro-machinery i.e. power operated Closed Drum Thresher in the course of mechanization of Bangladesh to overcome the expensive limited labour during rice threshing season. A power-operated Closed Drum Thresher is used to remove rice grains from plant-panicle by means of shearing force while harvested paddy plants move axially over a rotating central spike-drum inside a closed metal structure. The analysis considers different models of Closed Drum Thresher as well as inter-regional differences in agroeconomic factors that influence the business rationale for investment. Close-drum threshers look like a wise investment, compared to manual pedal-threshers to wealthier farmers who cultivate at least 5 -10 acres of land annually (assuming at least two crops per year). Capital cost is modest (up to Tk3 30,000) and can be recouped in a short period. Therefore, a power-operated Closed Drum Thresher is able to overcome the shortage of labour during peak harvesting season. 

  Closed Drum Thresher, Business rationale, Inter-regional wage rate, Pedal thresher, Break-even area
  In Bangladesh
  
  
  Socio-economic and Policy
  Thresher

 Regarding the payback period of the Closed Drum Thresher, BRRI (2005) reported that it can be covered within one year while considering the traditional manual threshing option. However, the analysis did not consider existing low-cost pedal thresher, inter-regional wage rate variation, and also different IRR (internal rates of return) options. This short study sets out to analyses the business rationale for smallholder farmers to invest in specific types of agro-machinery in Bangladesh. The analysis considers different models of Closed Drum Thresher and inter-regional differences in agro-economic factors that influence the business rationale for investment.

The field survey was done to collect information on Closed Drum Thresher from farmers and different stakeholders in selected regions of Bangladesh. For this purpose, we developed a questionnaire for farmers to collect the information on types and models, advantageous locations, incurred capital cost, running costs items, expected economic life, usage operating hours and acres, cost savings in terms of labours and other factors. To find the farmers who are using the Closed Drum Thresher, we communicated with agro-machinery manufacturers, repairing workshops, local farmers, research organizations and the Department of Agricultural Extension (DAE) in the selected regions. After understanding the locations of farmers, we moved to farmer’s houses in the rural areas to get their views/data on agro-machine according to the questionnaire. Regarding the selection of regions, we consulted regional research organizations, the Department of Agricultural Extension, local private institutions and literature about current usage patterns of Closed Drum threshers (BBS, 1999; BRRI, 1997; Hatch, 2005; ITDG, 2003). Initially, we selected eight regions for the fieldwork which cover almost all the typical crops and agricultural practices used in Bangladesh. During field survey, we found 18 users of Closed Drum among which 1, 3, 3, 3, 5 and 3 interviewees were found in Bogra, Comilla, Dinajpur, Kustia, Mymensingh and Sylhet, respectively. However, we were unable to collect information from two regions (Jessore and Dhaka) because of the unavailability of selected agro-machine users.  

This study examines variations in capital cost and performance characteristics (C) by comparing different types of agro-machinery. It looks at variations in substituted costs (L), by considering inter-regional differences in rural wage rates. And it the examines scale of production (S) or capacity utilization, i.e. the annual acreages of crop that is covered by the agro-machinery. 

turn (IRR) generated by investments as these factors vary. In mathematical terms we would examine IRR as a function of variations in C, L and S. However, land-holdings in Bangladesh are very small (mean <2 acres, median <1 acre), the third factor [S] dominates the analysis of IRR (BBS, 2004). We could have arbitrarily selected a range of different land-holding sizes, and calculated the IRR for the agro-machine, but this would not produce very useful results and would have taken a huge amount of time. In mathematical terms, therefore, this study is slightly unusual in examining S as a function of variations in IRR, C, and L which is derived from the break-even concept used for agro-machinery as reported by Bainer et al. (1987) and Hunt (1995). The break-even area or scale of production (S) was calculated.

  SAARC Jn. of Agri., 5(1), 11-21 : 2007
  
Funding Source:
1.   Budget:  
  

This study set out to analyze the business rationale for small-holder investment in a specific type of agro-machinery in Bangladesh, the Closed Drum Thresher. The analysis considers both different types and models of agro-machinery and inter-regional differences in agro-economic factors that influence the business rationale for investment. A Closed-drum thresher is a good investment for farmers cultivating at least 5 - 10 acres of land annually (assuming at least two crops per year). This, and the capital cost (up to Tk 30,000) makes it an opportunity for a small minority of wealthier farmers only. However, the technology is well-suited for promotion as a rental service provider and a viable scale of operation for this is very achievable (e.g. 60 – 100 hours a year at Tk 200 per hour).  

  Journal
  


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