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A Comparative Economic Analysis of Sugarcane Cultivation with and Without Intercrops in Selected Areas of Pabna District in Bangladesh

Mohona Hasan
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh-2202,Bangladesh

M. Harun-Ar Rashid
Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh-2202,Bangladesh

Maimuna Begum
Department of Agricultural Marketing and Business Management, Sylhet Agricultural University, Sylhet-3100, Bangladesh.

Md. Rashid Ahmed
Department of Agricultural Finance and Banking, Sylhet Agricultural University, Sylhet-3100,Bangladesh

Abstract/ Executive Summary:

The study measures the relative profitability of different farming systems of sugarcane production in Ishwardi Upazila of Pabna district. A total of 60 farmers, out of which 30 with intercropping and 30 without intercropping farm were selected following a stratified random sampling technique. Simple cost and return analysis were performed to examine the profitability of sugarcane production. Cobb-Douglas production function technique was employed to determine the effects of some selected variables in the production process. The study found that most of the sugarcane farmers were illiterate and sugarcane cultivation was the main occupation of them. The study found that the per hectare total costs stood at Tk. 126663 and Tk. 110143 with and without intercropping farm, respectively. Per hectare, total cash cost of with and without intercrops farms was accounted for 74.46 and 72.90 per cent of their total cost, whereas the total non-cash costs per hectare amounted for 25.53 and 27.10 per cent of their respective total cost. Gross returns per hectare stood at Tk. 249416 and Tk. 159204 for with intercropping and without intercropping farms, respectively. The study explores that sugarcane farming for both with and without intercropping systems was profitable but with intercropping was more profitable than without intercropping system. The findings reveal that setts, human labour, fertilizer, power tiller and manure had a significant impact but insecticide had an insignificant impact on per hectare output for with intercrops farm, while for without intercrops farm manure and insecticide had negligible impact. Lack of adequate operating capital, lack of certified sets of sugarcane, labour scarcity and ownership are major acute problems that farmers had to face in producing the sugarcane.

Keywords: Sugarcane; Intercropping; Benefit Cost Ratio; Cobb-Douglas function;

Location: Ishwardi Upazila of Pabna district in Bangladesh

Start Date: 00-00-2016

End Date: 00-00-2017

Program Area: Farming System

Commodity: Sugarcane

Objectives:

The specific objective of the study is to measure the cost and profitability of adapting sugarcane intercrops over sugarcane mono-cropping pattern and determine the major factors influencing gross returns of sugarcane mono-crop and sugarcane intercrops production.

Methodology:

The study was carried out at Ishwardi Upazila of Pabna district in Bangladesh. Four villages namely, Rejarnogor, Oronkhola, Ista and Umerpur were selected randomly for the study from the Upazila. A total of 60 farmers out of which 30 farmers under with intercropping and 30 farmers under without intercropping farm management practices were selected following stratified random sampling technique. Based on cropping pattern, cultivation of sugarcane is divided into two seasons-Kharif and Rabi. The Kharif season covers from May to September and Rabi season covers from October to April. It is generally planted within October to December and harvested after 12-18 months of planting. For this study, 2016-17 was chosen as plantation year. The study mainly based on primary data. The data were gathered from the farmers through a face to face interview using a structured questionnaire. The required data were collected from February to April 2017. Both descriptive and statistical techniques were used to analyze the collected data through SPSS programs and MS Excel to get a meaningful result in this study. The descriptive technique was used to calculate the sum, average, and percentage of costs, gross return, net return and profitability of sugarcane. It was also used for analyzing the problems faced by the sugarcane growers. The statistical technique was used to determine the effects of the most important variables to the gross return of sugarcane farm through Cobb-Douglas production function.

Source of Information: Asian Journal of Economics, Business and Accounting, 9(1): 1-13, 2018

Article Link (Online Journal): DOI: 10.9734/AJEBA/2018/44373

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Sugarcane cultivation is profitable but sugarcane production under with intercropping farm is more profitable than without intercropping farm. The different cost variables also have a significant impact on sugarcane production for both with intercropping and without intercropping farm management practices. The farmers have faced different problems in producing the sugarcane. The volume of sugarcane production can possibly be increased to a great extent if the related problems can be solved and can play a crucial role in the national economy of Bangladesh. Therefore, the government and policymakers need to take the necessary steps which can contribute to the development of sugarcane farming.

Knowledge Management: Journal