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Betel Nut Production and Cost-return Analysis at Farms’ Levels in Bangladesh: an Economic Appraisal

S.C. Barman
Principal Scientific Officer
HRC, BARI, Gazipur

M.N. Islam
Scientific Officer
Agricultural Economics Division, BARI, Gazipur

R. Islam
Scientific Officer
Agricultural Economics Division, BARI, Gazipur

M. I. Hossain
Chief Scientific Officer
Agricultural Economics Division, BARI, Gazipur

Abstract/ Executive Summary:

The study was conducted in Chittagong, Barisal, Feni and Laxmipur during 2000-2001 to find the profitability of betelnut. In the study of 180 betel nut gardens, the average garden size was found to be 0.24 ha and covered 16% of total farm area. In total 34% gardens were under mixed plantation and 66% were under single nut plantation. On an average there were 3004 nut plants in one hectare area. Considering sapling and other inputs costs the average establishment cost of gardens found to be Tk 7945.00/ha at current prices and it was Tk 2.64 per plant only. The average annual management cost for one hectare betel nut garden was estimated to be Tk 3272.00. Gardeners obtained an average yield of 14.46 tons/ha and 4.81 kg/tree/year. So, the return from nuts was Tk. 115680.00/ha at farmgate price and return from by products was Tk 483/ha. In financial analysis over average garden life period of 38 years the BCR, NPV and IRR were identified at 5.58, Tk. 27, 97,473.00 and 51% respectively indicated that the betel nut cultivation is highly profitable.

Keywords: Cost, Return, Betel nut, Economic, Appraisal

Location: Chittagong, Barisal, Feni and Laxmipur districts

Start Date: 00-12-2000

End Date: 00-04-2001

Program Area: Socio-economic and Policy

Commodity: Betel nut

Objectives:

i. To identify the annual production level of areca nut and management level at household gardens

ii. To estimate annual cost and return profile of betel nut gardens at farmers’ level and identify the profitability of betel nut gardening

iii. To identify and suggest research priorities for this palm.

Methodology:

Four thanas namely Roypur, Feni sodor, Bashkali and Kowkhali in four coastal districts Luzmipur, Feni, Chittagong and Perojpur respectively were selected for this study. These areas were chosen purposely where the farmers have established betel nut gardens and got products annually. Thus the total sample size for this study consisted of 180 betel nut gardeners. Forty-five farmers from each of Bashkhali and Feni Sodor, 40 farmers from Roypur and 50 gardeners from Kowhkali were included in the total sample. Each of the selected gardeners was visited and interviewed several times directly over a period of four months from December 2000 to March 2001, Data were collected with the help of a predesigned interview schedules which were finalized after pre testing. Information on farmers’ background, garden size and year of establishment of the gardens, total number of betel nuts as well as coconut plants (in case of mixed plantation), total harvest of nuts, management practices especially on pests and diseases control and on different inputs used and expenditures on operations etc. were collected.

Source of Information: Annual Research Report 2002, Agricultural Economics Division, BARI, Gazipur

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Per hectare establishment cost of betel nut garden was Tk. 7945 and establishment cost of per plant was found to be Tk 2.64 only. The nuts were harvested usually 3 to 5 times from each plant Annual average garden management cost estimated at Tk. 3272.00/ha. The average annual management cost for one hectare betel nut garden was estimated to be Tk 3272.00 and gross cost, including land value was found to be Tk. 10875.00/ha Tk. 3.62 per plant only. Therefore, annual average gross return reached at Tk 116163/ha. Considering management cost as variable item the annual return over it found to be Tk. 112891.00/ha and Tk. 37.58 per tree on sample gardens. Benefit cost ratio was found to be 5.58, NPV also found highly positive and internal rate of return (IRR) which was considered as the yield of investment in garden and was calculated to be 51% and was found also very high. Therefore, the study revealed that betel nut production at farm level might be a profitable cash crop for improving farm income. The present growth rate of productivity of betel nut reflecting the absence of application of modern management practices and improved selected varieties of betel nut in cultivation at farmers’ level. From this study it was found that farmers have an average garden size of 0.24 ha covering 16% of total farm area. More than 60% gardens were established in 1970’s decade, 20% in 1950’s decade and the rest in the recent past and found average productive life period of 38 years. The higher BCR, NPV and IRR of financial analysis of the nut gardens indicated that the betel nut production at farm level might be a profitable cash crop for increasing farm income.

Knowledge Management: Report/Proceedings