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Technical Efficiency of Mungbean Growers in Selected Coastal Areas of Bangladesh

Q. M. Shafiqul Islam
Senior Scientific Officer
Agricultural Economics Division, BARI Joydebpur, Gazipur-1701

M. S. Rahman
Scientific Officer
Agricultural Economics Division, BARI Joydebpur, Gazipur-1701

M.S. Hossain
Chief Scientific Officer
Agricultural Economics Division, BARI Joydebpur, Gazipur-1701

Abstract/ Executive Summary:

The study was conducted in two coastal mungbean growing districts namely; Noakhali and Patuakhali of Bangladesh during the period of 2008-09 to estimates the technical efficiency of mungbean growers. The study revealed that mungbean production was profitable and the average benefit cost ratio (BCR) was found to be 2.22. The estimated results showed that the average level of technical efficiency among the sample farmers was 89. This implies that given the existing technology and level of inputs, the output could be increased by 11 percent. In inefficiency model, the coefficient of farmers education and experience in mungbean cultivation had positive significant effect on mungbean production. Eighty two percent farmers produced outputs to the maximum frontier output level (82-99%). Farmers in the study area also mentioned some problems like high price of fertilizer, insecticides, severe attack of insects etc to its production.

Keywords: Technica efficiency, Mugnbean, Coastal areas

Location: Potuakhali and Noakhali

Start Date: 00-01-2009

End Date: 00-03-2009

Program Area: Socio-economic and Policy

Non-commodity: Efficiency

Objectives:

(i) To estimate the efficiency of mungbean growers

(ii) To know the impact of growers efficiency on mungbean production

(iii) To identify the constraints to mungbean production in Bangladesh.

Methodology:

The study was conducted in two coastal districts namely Noakhali and Patuakhali during January to March 2009. Sadar Upazila from Noakhali district and Dumki Upazila from Patuakhali district were purposively selected for the study. A total of 100 mungbean farmers taking 50 farmers from each districts were randomly selected with the help of DAE personnel for interview. The crop season under the study was late Rabi (January-May), 2008. Field investigators under the direct supervision of the researchers collected field level cross sectional data using pre-tested interview schedule. Data were taken on input costs, price, yields and other necessary information. Collected data were edited, summarized, tabulated and analyzed to fulfill the objectives of the study. Tabular method of analysis using different statistical tools was used in presenting the results of the study. Profitability of mungbean production was examined on the basis of gross margin, net return and benefit cost analysis. The analysis did not consider different fixed costs like rental value of land, depreciation on farm equipment, etc as gross margin was worked out in this paper. Besides, the opportunity cost of family supplied labour was taken into consideration in estimating total cost or full cost. In calculating gross margin, all operating costs were considered as variable cost. The stochastic Cobb-Douglas production frontier model was used for estimating technical efficiency of mungbean producer in the study areas.

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

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The average cost of production in full cost basis was found to be Tk. 20919/ha, which was found slightly more in Noakhali. The average gross return from mungbean production was found to be Tk. 46423/ha and gross margin on full cost basis Tk. 25505/ha. The benefit cost ratio was estimated at 4.34 and 2.22 on cash cost basis and full cost basis respectively. The cost of grain was Tk 11.63 on cash cost basis and Tk. 22.13 on full cost basis. On an average benefit from per kilogram mungbean production was Tk. 26.97. The maximum likelihood estimates for parameter of the Cobb Douglas Stochastic production function frontier of mungbean represent that most of the parameters were statistically significant and positive. The co-efficient of TSP cost was found positive and significant at 1% level, while that of land preparation, seed and urea cost were found positive but significant at 10 percent level. In other words, the elasticity’s of land preparation, seed, urea and TSP were 0.018, 0.004, 0.002 and 0.004 respectively. The mean value of technical efficiency was 0.89 with a range from 0.82 to 0.99%. About 59% farmers produced outputs which were very close to the maximum frontier output level (82-99%). It was found that cent percent farmers responded that high price of fertilizers, ranked first as a problem of mungbean production. Other major constraints were untimely rainfall (69%), incidence of diseases (65%), lack of quality seed (51%) and insect infestation (50%). Besides, lack of capital and lack of suitable land were also opined as the problem of mungbean cultivation.

Knowledge Management: Report/Proceedings