Agricultural Research Management Information System

Home
Research Summary
Search
About Us
- ARMIS
- Brochure
Contact Us
Report
User Request
Data Input
Help
- Operation Manual
  - PDF
  - Video
- Program Area & Commodity
We have reached 37600 number of research entries at this moment.

- Logout

Research Detail

Home
Research
Detail

Financial Profitability and Resource Use Efficiency of Boro Rice Cultivation in Some Selected Area of Bangladesh

Md. Hayder Khan Sujan
Department of Development and Poverty Studies, Sher-e-Bangla Agricultural University, Dhaka 1207, Bangladesh

Faijul Islam*
Department of Agricultural Economics, Sher-e-Bangla Agricultural University, Dhaka 1207, Bangladesh.

Md. Javed Azad
Department of Agricultural Extention and Information System, Sher-e-Bangla Agricultural University, Dhaka 1207, Bangladesh.

Shah Johir Rayhan
Department of Management and Finance, Sher-e-Bangla Agricultural University, Dhaka 1207, Bangladesh.

Abstract/ Executive Summary:

The paper analysed the profitability and resource use efficiency of boro rice cultivation in Bogra district of Bangladesh using farm level survey data of April-May, 2016. In total 103 farmers were selected randomly from the study area. Result based on Farm Budgeting model showed that per hectare variable cost and total cost of production was BDT (Bangladeshi Taka) 57,583 and BDT 71,208 respectively. Average yield was found 4.112 ton which was more than the previous year’s national average yield of 3.965 ton. The average gross return, gross margin, and net return were BDT 86,548, BDT 28,965 and BDT 15,340 respectively. Benefit-Cost ratio (BCR) was found 1.22 and 1.50 on full cost and variable cost basis. Cobb-Douglas production function analysis showed that the key production factors, that is, human labour, irrigation, insecticide, seed and fertilizer had statistically significant effect on yield. MVP and MFC ratio analysis showed that growers allocated most of their resources in the rational stage of production.

Keywords: Benefit-Cost ratio (BCR), Cobb-Douglas production function, Elasticity, Resource use efficiency.

Location: Bogra district of Bangladesh

Start Date: 00-04-2016

End Date: 00-05-2016

Program Area: Socio-economic and Policy

Commodity: Profitability, Boro rice

Objectives:

A review of existing literature reveals that so far the attention has been given by the researchers in investigating the efficiency of boro rice production in the study area is not adequate. Thus, the objective of the present study is to analyze the resource use efficiency of boro rice production in Bangladesh using data from boro rice farmers in April-May, 2016.

Methodology:

A micro-level empirical study based on primary cross-section data was designed to attain the purposes of the study. The methodology of the study is mainly about the sampling procedure, collection of data and analytical framework.

Sampling technique In this research, study area and respondent were selected by multistage random sampling procedure. In first stage of sampling, Bogra district was selected purposively. In the second stage, four upazilas named Bogra sadar, Dhunat, Shibganj and Sonatala were selected purposively. After that, a complete list of boro rice farmers was collected from each Upazila. At the final stage, a total of 103 rice farmers were selected by random sampling technique. Among the 103 rice farmers 25 numbers of farmers were included from each one of first three Upazila and 28 were included from Sonatala Upazila. Since the study focuses on resources use efficiency, attempt was made to choose respondent from that areas, which had an average level of agricultural performance in their respective sub-regions.

Method of data collection As per the conventional survey techniques, primary information on available resources and their use, prices of farm product and different inputs were collected by direct interviewing of farmers using a designed and pre-tested questionnaire in April-May, 2016.

Analytical framework Different parameters of costs and return were analyzed to measure the profitability of boro rice cultivation on the study area. The following algebraic equation was developed to assess the costs and returns of rice production.

Benefit-Cost Ratio (BCR) analysis This ratio was measured in the study in two different ways.

Empirical model For functional analysis of the data Cobb-Douglas production function is used. Logarithmic form of the function is linear and parsimonious which ease the estimation and interpretation of data. In general, the production of boro rice is mostly influenced by human labour, power tiller, seed, urea, TSP, MoP, insecticide and irrigation etc. The Cobb- Douglas regression function.

Source of Information: African Journal of Agricultural Research Vol. 12(29), pp. 2404-2411, 20 July, 2017

Article Link (Online Journal): DOI: 10.5897/AJAR2017.12443

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The principal finding of the study is that the boro rice cultivation in Bogra district was a profitable venture. All of the factors namely human labour, seed, urea, insecticide and irrigation were very important for the cultivation. Function analysis implied that the farmers employed their scarce resources in boro rice production inefficiently. Resource use efficiency analysis also provided an alarm that most of the resources used in the production were not economically optimal. Improvement in irrigation system is the key recommendation for improving productivity of boro rice in the study area. Providing proper training to farmers for making them aware about different strategies of cultivation and taking necessary steps for increasing the quality of pesticide can also be policy implication. HYV boro seed should be made available to farmers in the production season within affordable cost. Agricultural labour should be made available when necessary and agricultural mechanization should be encouraged.

Knowledge Management: Journal