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Up Date Study on Cost and Return of Jute and Allied Fibre Crops Production at Farm Level in Different Areas of Bangladesh.

M N Uddin
SSO
Jute Farming Systems Division, BJRI, Dhaka.

M. Hussain
CSO
Jute Farming Systems Division, BJRI, Dhaka.

Q. A. Rahman
SO
Jute Farming Systems Division, BJRI, Dhaka.

M Al-Mamun
SO
Jute Farming Systems Division, BJRI, Dhaka.

M J Alam
SO
Jute Farming Systems Division, BJRI, Dhaka.

Abstract/ Executive Summary:

This study is a modest attempt to understand the economics of jute and allied fibre of Bangladesh during the year 2009-10. Survey was carried out of selected 12 locations of 240 farmers by adopting simple random sampling method. The total cost per hectare was found highest in Kapasia (Tk. 102562) compared to other locations. The average yield of Jute fibre was 2737 kg/ha and average Jute stick yield was 8681kg/ha. It appears that both average gross return and gross margin per hectare were Tk.148888/ha and Tk. 79522/ha on the basis of full cost & cash cost over the locations. The highest gross return was observed in Natore (206465 Tk/ha) but highest gross margin was recorded Tk 131514 /ha in Kishoreganj on the basis of full cost. The benefit cost ratio (BCR) was highest in Kishoreganj 3.86 on the basis of full cost and 6.67 on the basis of cash cost.

Keywords: Cost and return, Jute and allied fibre, Farm level

Location: Gazipur (Kapasia), Natore, Naogaon, Kishoreganj, Faridpur, Madaripur, Kushtia, Jessore, Chandina, Kurigram, Rangpur and Dinajpur

Start Date:

End Date: 00-00-2010

Program Area: Socio-economic and Policy

Commodity: Jute

Objectives:

i) To estimate the cost and return of jute and allied fibres and

ii) To identify the socio-economic constraints for jute production.

Methodology:

Structured questionnaire survey was conducted during 2009 jute growing season for collecting the associated data on production activity. The survey was conducted at 12 locations where jute was grown intensively. A total sample of 240 farmers (20 farmers from each location) was selected randomly. Tabular method was used for analyzing the data. Co-ordination from the respective scientists at research stations of BJRI, concerned personnel from DAE and Jute Directorate wias taken in need for data collection during the study.Return may be measured in terms of yield, gross return and net return. Gross return is the value of main yield and by product. On the other hand, net return is the difference between gross return and cost of production (TC).

Source of Information: Annul Research Programme 2009-10 and Annual Research Report 2010-11.

Article Link (Online Journal):

Funding Source:

1. Government

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Cost of production is the main determining factor for farm income. Based on the survey results, it was found that the average total cost (TC) of all the location was amounted to Tk. 693669( Tk Six lac ninety three thousand six hundred sixty nine only) thousand per hectare. The average cash cost per hectare was, about 61% of total cost, amounting to Tk. 42656 ( Tk.Forty two thousand six hundred fifty six only) incase of Olitorius jute production at farm level. The total cost per hectare was found highest in Kapasia Tk. 102562 ( Tk. One lac two thousand five hundred sixty two only) compared to other locations. This was due to higher wages of human labour. The result demonstrates that the human labour cost incurred higher percentage of total cost (46.70%). And also of total cash cost highest (57.17%). The value of jute fibre and by product yield was calculated at prevailing market rate and it varied Tk. 33.5 to Tk 55.0/kg for fibre and Tk.3.00/kg to Tk.5.25/kg for jute stick. So that the average value of jute fibre & jute stick was Tk. 45.18/kg and Tk.4.36 /kg in different sample areas. The observed variation in yield across the locations was due to different types of management practices, lack of balanced fertilization and sensitivity to weather etc. The average yield of Jute fibre was 2737 kg/ha and average Jute stick yield was 8681kg/ha. The highest gross return was observed in Natore (206465 Tk/ha) but highest gross margin was recorded Tk 131514 /ha ( Tk. One lac thirty one thousand five hundred fourteen ) in Kishoreganj on the basis of full cost. The benefit cost ratio (BCR) was highest in Kishoreganj 3.86 on the basis of full cost and 6.67 on the basis of cash cost. This may be attributed due to the advantages of higher market price of jute fibre and by-product yield and also lower production cost at Kishoreganj. These entire factors ensure highest net return in this area.

Knowledge Management: Report/Proceedings