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Analysis of Total Factor Productivity of Modern Variety Potato in Bangladesh

M. A. Baset
Principal Scientific Officer
Agricultural Economics Division, BARI, Gazipur

M. R. Karim
Senior Scientific Officer
Agricultural Economics Division, BARI, Gazipur

M. Akter
Scientific Officer
Agricultural Economics Division, BARI, Gazipur

Q. M. Alam
Chief Scientific Officer
Agricultural Economics Division, BARI, Gazipur

Abstract/ Executive Summary:

The present study deals with the whole scenario of modern variety potato production in Bangladesh covering the period from 1980-81 to 2005-06. The primary objective was to estimate the extent of shift of production function or the supply curve of modern variety of potato in Bangladesh. The total factor productivity index was estimated using the Tornqvist-Theil index formula. The growth rate of area, production and yield were found increasing steadily from the year 1980-81. A substantial change has been started from the year 1998-99. The trend of inputs used was found increasing. Almost all the partial as well as the input, output and total factor productivity indices were also found increasing. To sustain the present growth of modern variety potato production needs to develop new varieties of potato and extensive extension work.

Keywords: Total factor productivity, Modern variety, Potato

Location: Secondary data

Start Date: 01-08-2006

End Date: 01-07-2007

Program Area: Socio-economic and Policy

Commodity: Potato

Objectives:

i. To identify the factor of productivity

ii. To estimate the input used in modern variety of potato production

iii. To construct the partial as well as total factor productivity indices

iv. To provide a policy guideline for scientists, extension personnel and policy makers.

Methodology:

Total factor productivity analysis is the extension of the partial factor productivity analysis . Its nature is non-frontier non parametric analysis. The latest technique Tornqvist Divisia index was used for the analysis of the present study on potato. The indices were estimated considering the base year 1980-81 = 100. All the inputs and output were computed based on the current prices. Our intension was to analyze the whole scenario of potato covering the period from 1980-81 to 2005-06. If we have a look to the scenario of area, production and also the yield of potato, the growth rates are increased steadily from year 1980-81. It is the right time to analyze the whole scenario by disaggregating into three sub-periods i.e. a) 1980-81 to 1989-90, b) 1990-91 to 1999-00 and 2001-02 to 2005-06.The time series data on both inputs and outputs were needed to estimate the total factor productivity index. The production data on output and area were obtained from BBS. But, the yearly data on cost of production of potato in both physical and monetary terms were not readily available. For estimating these data, the first step was to collect the relevant information on physical quantity of inputs from various published sources e.g. Journals, Annual reports and Thesis. The second step was to collect the price data on various inputs from the Bangladesh Bureau of Statistics (BBS) and Department of Agricultural Marketing (DAM). Besides, certain statistical techniques were used to interpolate and extrapolate the inputs data. Having all the information, the aggregation of total output and inputs both in quantities and monetary terms were estimated for the estimation of total factor productivity index of potato.

Source of Information: Annual Research Report 2007, Agricultural Economics Division, BARI, Gazipur

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The growth rate of research and extension was found high and significant at 1% level. BARI contributed a lot for the development of a number of new varieties. The results obtained for individual years appeared to vary widely because of fluctuation in the prices of input and output. The TOI growth rate was found highest in the period of 2001-2006 but TFP growth rate was found highest in the period 1991-2000. It indicated that the lion share of profits was received by the potato farmers. In other words, higher the TFP growth rates higher the efficiency meaning that the farmers were more benefited than that of consumers. It indicated that the farmers were more aware to produce commercially the modern variety of potato using the available potato technologies. On an average, the technological change in modern variety potato production during the past period was mostly cost effective for the farmers.

Knowledge Management: Report/Proceedings