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Economic Performance of Jute (corchorus Spp.) Cultivation at Farm Level in Some Selected Areas of Bangladesh

M Babul Hossain
SSO (cc)
Jute Farming Systems Division, BJRI, Dhaka.

M Nasir Uddin
PSO (cc)
Jute Farming Systems Division, BJRI, Dhaka.

M J Alam
SSO (cc)
Jute Farming Systems Division, BJRI, Dhaka.

Abstract/ Executive Summary:

The economic performance of jute cultivation was conducted at farm level of Manikganj, Jessore, Rangpur and Faridpur using pre-tested interview schedule through face to face interview method to know the existing agronomic practices, profitability and socio-economic constraints of jute cultivation during 2011-12. Jute farmers used 214 man-days of human labour per hectare of which 30% were family supplied. It was also found that about 86% farmers used purchased seed and the rest 14% used own seed. Farmers of Jessore used more TSP and MoP fertilizers than Rangpur. The major share in total cost was human labour (65%), followed by land use value (11%), land preparation (8.7%) and fertilizers (7%). It was found the highest gross return per hectare in Faridpur (Tk. 98330) compared to Rangpur (Tk. 90219), Jessore (Tk. 81767) and Manikganj (Tk. 79557). Gross margin was found to be the highest in Faridpur (Tk. 32544 ha^-1) and the lowest in Jessore (Tk. 10206 ha^-1). The average benefit cost ratios (BCR) were 1.28 on full cost and 1.83 on variable cost basis.

Keywords: Economic performance, Farm level, Jute cultivation, Selected areas.

Location: Manikganj, Jessore, Rangpur and Faridpur.

Start Date: 01-03-2011

End Date: 10-09-2012

Program Area: Socio-economic and Policy

Commodity: Jute

Objectives:

To know the existing cultivation practices and inputs;
To estimate the profitability of jute cultivation and
To identify the socio-economic constraints of jute cultivation at farm level.

Methodology:

The study was conducted in eight upzilas under four districts, namely Manikganj Sadar and Shaturia (Manikganj); Monirampur and Keshobpur (Jessore); Mahiganj and Kaonia (Rangpur) and Kanipur and Sadar (Faridpur) during 2011-12. The study areas were selected according to intensive cultivation of jute. A total of 120 jute farmers taking 15 farmers from each Upazila were randomly selected with help of BJRI personnel for interview. Researchers collected field level cross sectional data using pre-tested interview schedule through face to face interview method. Data was taken on input costs, prices of inputs and products, yields, lease value of land per year, constraints and other necessary information. Collected data were edited, summarized, tabulated and analyzed to fulfill the objectives of the study. For calculating the cost of cultivation of jute, all variables costs like human labour, land preparation, seed, manures, fertilizers, insecticides, irrigation, and interest on operating capital were calculated per hectare basis. The fixed cost of jute cultivation included cost of land use and family labour. The cost of land use was calculated on the basis of lease value of land for jute season (4 months). The total cost included fixed cost and variable cost. Profitability of jute production was examined on the basis of gross return, gross margin, and benefit cost analysis. The opportunity cost of family supplied labour was taken into consideration in estimating total cost or full cost. The following simple equation was employed:

GM = I – (Fc + Vc)

Where, GM = Gross margin and I = income from jute fibre and jute stick; Fc = fixed costs and Vc = variable costs.

Source of Information: Annual research Report 2011-12, BJRI

Article Link (Online Journal):

Funding Source:

1. Government

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Recently, some of the farmers like Jessore and Faridpur are cultivated jute after Boro rice. On an average, 2.86 number of ploughing by power tiller and 2.22 number of laddering were done by the farmers for jute cultivation. It was observed that most of the farmers used thinning and weeding in two to three times for jute crop. On an average, the land lease value was Tk. 7320.50 per hectare which was found the highest in Rangpur (Tk. 8233 per hectare) followed by Manikganj (Tk. 7780 per hectare) due to high value crop cultivated in those areas. Insecticides were used in all areas and it was higher in Jessore. Jute seed was used 8.24 kg per hectare which was found the highest in Rangpur (8.89 kg per hectare) and the lowest in Jessore (7.41 kg per hectare). The cost of jute cultivation in Manikganj (Tk. 77654 ha^-1) was found the highest due to the higher cost of human labour (68%), land lease value (10%). On the other hand, the lowest cost of cultivation was found in Rangpur (Tk. 62794 ha^-1) due to the lower cost of fertilizers. In Manikganj, labour wage was Tk. 250 per man/day due to lack of agricultural labour, where Jessore, Rangpur and Faridpur were Tk. 200 per man/day. It was found that the average benefit cost ratios (BCR) were 1.28 and 1.83 on full cost and variable cost basis and indicated that the cultivation of jute is a profitable crop enterprise under the present farming systems. It was also found that the highest BCR on variable cost received by the Faridpur (2.23) farmers followed by Rangpur (2.09) due to higher yield and price.

Knowledge Management: Report/Proceedings