Agricultural Research Management Information System

Home
Research Summary
Search
About Us
- ARMIS
- Brochure
Contact Us
Report
User Request
Data Input
Help
- Operation Manual
  - PDF
  - Video
- Program Area & Commodity
We have reached 37600 number of research entries at this moment.

- Logout

Research Detail

Home
Research
Detail

Financial and Economic Analyses of Integrated Rice Processing Technology in an Agrarian Community in Mymensingh District

M. Akteruzzaman
Professor
Dept. of Agricultural Economics, Bangladesh, Agricultural University, Mymensingh

A.H.M.S. Islam
Lecturer
Dept. of Agricultural Economics, Bangladesh, Agricultural University, Mymensingh

S. Haque
Assistant Professor
Dept. of Agricultural Economics, Bangladesh, Agricultural University, Mymensingh

Abstract/ Executive Summary:

This study surveyed 100 farmers of Fulbaria upazila of Mymensingh district from four groups namely; Traditional farm-30, Semi-modern-I: farm-30, Semi-modern- II: farm-30, and Modern farm-10 for paddy processing system. Moreover, data on 30-power thresher, one STR-1 dryer and one mechanical reaper operation were investigated to fulfill the objectives of the study. The survey was conducted during January to June 2005 and January to June, 2006 covering two subsequent management both aman and boro season. Partial budgeting technique was applied to estimate the economic benefit to the users and project appraisal technique was adopted to conclude the performance of the three types of devices in terms BCR, NPV and IRR. Two third of the user and owners were 31-57 years of old and 40% of the owner and users had secondary level of education. Eighty percent of the owners were engaged primarily in agriculture and 50% of them occupied in off- farm employment. Semi-modern farms had the large farms compare to traditional farm. About 75% income of the users came from agricultural source while it was 36% for the power thresher owners. A significant portion of the income of owners came from off-farm activities. A net change of rice income Taka 4250 per hectare was observed due to introduction of mechanical reaper for harvesting paddy. The users those who used all the processing technologies earned an additional Taka 8200 per hectare. Those who were already used the power thresher but undertaken mechanical dryer earned an amount of Taka 1889 per hectare. Even those who were already used the power thresher but undertaken mechanical reaper earned an amount of Taka 2520 per hectare. The cost of harvesting, threshing and drying per quintal were respectively Taka 8.89, Taka 23.25 and Taka 35.24. It was observed that NPV of the power thresher and reaper in existing condition were Taka 42441 and 3006 while the mechanical dryer (Taka -1503) indicating the loss of the investment. The average IRR of power thresher and reaper was 89% and 48% while the IRR of mechanical dryer is negative (-2). In view of these circumstances, the financial analysis showed that power thresher and mechanical dryer was highly profitable from the viewpoint of individual investors. A series of problems were identified and suggested for policy guidelines.

Keywords: Financial and economic analyses, Net income change income, Partial budgeting, Internal return rate return.

Location: ASA at Mowati village of Bawoshi union under Barhatra thana of Netrokona district

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Market analysis

Objectives:

To estimate the economic return and profitability of investment on power thresher, reaper and dryer in post harvest rice processing of the resource poor farmers and suggests for policy guidelines.

Methodology:

To achieve the objectives, the study has been jointly collaborated with local NGO (ASA). One group members of ASA was selected for this study, where one closed drum power thresher had already been established by the informal group of ASA at Mowati village of Bawoshi union under Barhatra thana of Netrokona district. One STR-1 Dryer distributed free of cost from (Bangladesh Agricultural University Research System) BAURES project on May 2003. The group appointed the operator for operation of the machine. Moisture meter and the necessary spare parts were supplied from the project free of cost. The operators worked under close supervision of the project research assistant. The group also shared all the operating cost and charged a fixed amount of rent per unit of output from the user, which was prior, approved from their parent NGO, ASA. The group maintained proper records of accounts of power thresher and dryers on daily basis and corresponding income and expenses. A total of 30 people including the selected operator and other 10 members of that group of ASA were trained and demonstrated on the operation and management of these devices by the (Bangladesh Agricultural University) BAU and (Rangpur Dinajpur Rural Services) RDRS experts. From the demonstration, the opinion survey was conducted on the performance of the dryer machine in different aspects. To estimate the economic return from the power thresher, mechanical reaper as well as dryer machine, socio-economic information were collected through survey method. A questionnaire was developed and used for collecting data including market price of rice grain. A total of 100 farmers were interviewed (Table 2) covering the three groups namely; those who did not use at all any machineries (Traditional farm -30), those who used both power thresher and reaper (Semi-modern farm I- 30), those who used power thresher and dryer (Semi-modern farm II- 30) and those did use all the machineries (Modern farm-10) for paddy processing system. Moreover, the technical and physical information, operating costs and returns gained by the 30-power thresher owner, one STR-1 dryer and one self-propelled reaper were investigated. The data collection was conducted during the April to June 2006. The collected data were analyzed to fulfill the objectives of the study. In addition to tabular form of analysis, partial budgeting technique was applied to estimate the economic benefit to the users. The financial analysis was adopted to conclude the performance of the two types of devices in terms of B/C ratio, net present value and internal rate of return (IRR).

Source of Information: Bangladesh Journal of Extension Education, Volume 18, No. 1&2, 2006:73-80 ISSN 1011-3916

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The users of the mechanical devices were the small farmers, thus, this program may helpful for improving livelihood of the rural poor farmers.
The use of mechanical devices reduce post harvest losses, timeliness and labor cost thus, the higher demand for mechanical devices were observed in that period and ensure fair price to the farmer.
The price of rice increased due to timeliness, quality improvement, and seasonality; so, the rice processing devices could help farmers for earning additional income.
Per quintal harvesting, threshing and drying cost of paddy was Taka 8.89, 23.25 and 35.24, which was much lower than the incremental market price induces for using these rice processing devices.
The users were more benefited by about Taka 8200 per hectare if they used the devices for rice processing by which they could improve their livelihood. In terms of rate of return on investment with existing condition, power thresher and mechanical harvester was found highly profitable but because of sunshine weather dryer was not profitable. If the working period increases due to cloudy weather for increasing return on investment are found that after remodeling the dryer, become more profitable. Finally, the study strongly recommended for rapid extension of the dryer project through government and non- government agencies.

Knowledge Management: Journal