Md. Abdul Baset
Principal Scientific Officer
Agricultural Economics Division, BARI, Gazipur
Quazi Mesbahul Alam
Principal Scientific Officer
Agricultural Economics Division, BARI, Gazipur
Md. Rezaul Karim
Senior Scientific Officer
Agricultural Economics Division, BARI, Gazipur
An ex-ante study was under taken to quantify the future benefit from Dura variety potato which is recently approved by the national seed Board (NSB) of Bangladesh and released by the Tuber Crops Research Centre (TCRC) of the Bangldesh Agricultural Research Institute. The model used for this study is the one developed by Akino & Hayami (1975) based on the economic surplus approach. The Internal Rate of Return (IRR) to Dura variety potato research by the Tuber Crops Research Centre (TCRC) was calculated to be 44%. The result indicated that each taka invested returns Tk. 0.44 per year from Dura variety potato research and was highly profitable.
Research, benefit, Dura, potato.
Secondary data from all over Bangladesh
i. To calculate the Internet Rate of Return (IRR) from Dura Variety potato research investments; and
ii. To provide information to policy makers, do not agencies and research managers.
The Spreadsheet approach to Economic Surplus Model for the ex-ante analysis was used which is described by the (Aistom et al, 1995). In this study the IRR assuming condition. sensitivity analysis was done by changing the different parameters in different rate. Data requirements are in terms of (1) market related data and (2) research related data. Market related data and information are gathered from published sources. Market related data requirement for this analysis includes potato production and price of the commodity and output supply elasticity. Research related data are obtained from scientists, and other informants. Research related data is included yield advantage of the Dura variety potato, the input cost change, and research expenditure.
Annual Research Report 2006, Agricultural Economics Division, BARI, Gazipur
Dura is a newly developed potato variety that gives higher yield comparing to most cultivated variety cardinal. In this study benefit from the Dura variety was estimated to be 44% IRR. The result indicated that each taka invested returns Tk. 0.44 per year from Dura variety potato research and was highly profitable. The IRR44% is a good rate of return. The supply elasticity was 0.01 percent, yield change was 0.023, commodity price was Tk 7100.00, exogenous output growth rate was 2.32%, base quantity in the year 2005 was 3907000 metric ton, and research cost was Tk.6451000. The sensitivity analysis indicates that when the yield change increased by 25% and decreased by25%, the estimated IRR was 47% and 38% respectively. Similarly when the yield change increased by 10% and decreased by 10% the IRR was 43% and 42% respectively.
Report/Proceedings