African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6577

Full Length Research Paper

Financial profitability and resource use efficiency of boro rice cultivation in some selected area of Bangladesh

Md. Hayder Khan Sujan
  • Md. Hayder Khan Sujan
  • Department of Development and Poverty Studies, Sher-e-Bangla Agricultural University, Dhaka 1207, Bangladesh.
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Faijul Islam
  • Faijul Islam
  • Department of Agricultural Economics, Sher-e-Bangla Agricultural University, Dhaka 1207, Bangladesh.
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Md. Javed Azad
  • Md. Javed Azad
  • Department of Agricultural Extention and Information System, Sher-e-Bangla Agricultural University, Dhaka 1207, Bangladesh.
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Shah Johir Rayhan
  • Shah Johir Rayhan
  • Department of Management and Finance, Sher-e-Bangla Agricultural University, Dhaka 1207, Bangladesh.
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  •  Received: 10 May 2017
  •  Accepted: 27 June 2017
  •  Published: 20 July 2017

Abstract

The paper analysed the profitability and resource use efficiency of boro rice cultivation in Bogra district of Bangladesh using farm level survey data of April-May, 2016. In total 103 farmers were selected randomly from the study area. Result based on Farm Budgeting model showed that per hectare variable cost and total cost of production was BDT (Bangladeshi Taka) 57,583 and BDT 71,208 respectively. Average yield was found 4.112 ton which was more than the previous year’s national average yield of 3.965 ton. The average gross return, gross margin, and net return were BDT 86,548, BDT 28,965 and BDT 15,340 respectively. Benefit-Cost ratio (BCR) was found 1.22 and 1.50 on full cost and variable cost basis. Cobb-Douglas production function analysis showed that the key production factors, that is, human labour, irrigation, insecticide, seed and fertilizer had statistically significant effect on yield. MVP and MFC ratio analysis showed that growers allocated most of their resources in the rational stage of production.

Key words: Benefit-Cost ratio (BCR), Cobb-Douglas production function, elasticity and resource use efficiency.