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PROFITABILITY ANALYSIS OF SUBMERGENCE TOLERANT RICE VARIETY

BINADHAN-11

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Bangladesh J. Nuclear Agric. 31 & 32: 85-92 ISSN 0258-7130

PROFITABILITY ANALYSIS OF SUBMERGENCE

TOLERANT RICE VARIETY BINADHAN-11

S. Islam, M. R. Haque, M. M. A. Sarker and R. Sultana

Abstract
The study was conducted in four major Binadhan-11 growing areas, namely
Mymensingh, Sherpur, Jamalpur and Kurigram of Bangladesh. The average cost of
production of Binadhan-11 is Tk. 44642.28 per hectare. The major share of total cost
was human labour, power tiller and fertilizers. The cost of Binadhan-11 cultivation was
found higher in Mymensingh (Tk. 47646.89 ha -1) followed by Sherpur, Jamalpur and
Kurigram were Tk. 45970.44, Tk. 42483.90 and Tk. 42467.88 ha -1, respectively. The
net returns of Binadhan-11 were Tk. 33873.64, Tk. 31082.65, Tk. 17566.42 and Tk.
21583.28 ha-1 followed by Mymensingh, Sherpur, Jamalpur and Kurigram,
respectively. In the study area, the highest net return was found in Mymensingh district
(Tk. 33873.64 ha-1) and the lowest was in Jamalpur district (Tk. 17566.42 ha-1). The
average net return of Binadhan-11 was Tk. 26026.50 ha-1. The average Benefit cost
ratio was 1.58 indicates that cultivation of these variety is profitable to the farmer’s
level when all sorts of cost were taken into consideration. The highest BCR was found
in Mymensingh district (1.71) which was followed by Sherpur (1.68), Kurigram (1.51)
and Jamalpur (1.41) districts, respectively. However, the sample farmers were
profitable to cultivate Binadhan-11 in the study area. The reasons that hamper the
achievement of goals are defined as problems whereas suggestions are indications of
some measures to overcome these problems.

Key words: Binadhan-11, Profitability, Cost, Return and Problem.

Introduction
Rice is an important submergence tolerant rice variety in Bangladesh due to its higher
yield, nutritional value and versatile uses. Demand of rice in Bangladesh is augmenting day
by day as Bangladesh is the 8th most populous country in the world with a total population
of 155.8 million, population growth rate is 1.37% (BER, 2017) and its density of population
is 1077 persons per Km2 (BER, 2017). More than 70% of the country’s population as well
as 45.01% of its labour force directly and indirectly depend on agriculture and contribute
14.79% to the GDP (BBS, 2017). High production of rice depends on the expansion of HYV
and saline tolerable variety of seeds, improved management and timely supplying of inputs.
The rate of adoption of modern technology and sustainability of rice production depend
largely on its economic profitability. The efficient use of resources is an important indicator
of increased production in agriculture. Efficient utilization of present level of inputs is
indispensable for higher productivity.
Agricultural Economics Division, Bangladesh Institute of nuclear Agriculture, Mymensingh-2202, Bangladesh

85
 In Bangladesh, the problem of food deficit can best be met by increasing rice
production. The desirable characteristics of rice hashigher yield than other cereals, well
suitability to the rain fed condition and higher nutrition status. The people of Bangladesh
can meet the calories requirements by increasing rice production.
In Bangladesh, coastal areas constitute about 2.5 million hectare which amounts to
about 25 percent of total crop land of the country. Of this, nearly 0.84 million hectare is
affected by varying intensities of salinity (Karim et al 1990). Salinity Intrusion in Interior
Coast found that the increasing concentration of salinity will create more pressure to the
farmer by reducing yield and threatening livelihood, income generation and food security
(Lubna and Baten, 2012). According to Sikder (2012), Bangladesh is one of the worst
affected countries that are facing the early impacts of climate change particularly in
agricultural sector. Razzaque and Zaman (2007) carried out a study on comparative analysis
of T. aman rice cultivation under different management practices in coastal area where
demonstration plots showed higher benefit cost ratio than non-demonstration plot. Haque
(2006) studied the salinity problems and crop production in coastal reason of Bangladesh
which showed that about 53% of the coastal areas are affected by salinity. In addition, Singh
(2003) showed that contract farming as a system affected growers positively or negatively
depends on the context of the economy. Rahman and sattar (2013) conducted a study on
IRRI supported submergence tolerant rice variety in Bangladesh and found it was profitable.
However, studies regarding the profitability of rice in submergence areas of Bangladesh are
very few, that is why, the present study had been taken for measuring profitability of rice
production in submergence areas of Mymensingh, Sherpur, Jamalpur and Kurigram district
for a successful rice revolution in Bangladesh and expected to provide valuable data and
useful for formulating appropriate policy for widespread cultivation of rice insubmergence
areas of Bangladesh. The objectives were i) to estimate the cost and return of the
submergence tolerant rice variety binadhan-11; and ii) to identify the major problem faced
by the Binadhan-11grower farmers.

Materials and Method

The study was conducted in four major Binadhan-11 growing areas of Bangladesh,
namely Mymensingh, Sherpur, Jamalpur and Kurigram. A total of 120 farmers were
randomly selected as sample size by using multi-stage sampling method in the study area,
30 from each district. Data were collected from Binadhan-11 growers through interview
schedule. Some descriptive statistics were used for analyzing the data. In the study, costs
and return analyses were done on full cost basis.
Profitability analysis of rice production has been determined on the basis of net
return. To determine the net returns from rice production, gross costs (variable and fixed
cost) were deducted from gross returns. For this purpose, the following equation was used
(Dillon and Hardaker, 1993).

86
The equation has been applied for each of the selected farmers:
π = Ym*Pm+Yb *Pb –Σ (Xi* Pxi)-TFC
Where,
π = Net return; Ym= Total quantity of main product; Pm= Price of main product per
units; Yb= Quantity of by-product; Pb = Price of by-product per unit; Xi= Quantity
of the ith input used for rice production; Pxi= Price of ith input per unit used for rice
production; TFC = Total fixed cost i = 1, 2, 3...........................n (number of input)
The estimation of interest on operating capital (IOC) was as follows:
Interest on OC = AI × i × t
Where, AI = (Total investment)/2;
I = Rate of interest per annum (%); and T = Period of rice production (in month).

The benefit cost ratio (BCR) is a relative measure which is used to compare benefit
per unit of cost. Benefit-cost ratio is the ratio of present net worth of benefit and present net
worth of cost. It indicates that the benefit of per unit cost at present worth.
Present net worth of benefits
Benefit – Cost Ratio (BCR) --------------------------------------
Present net worth of cost

Result and Discussion

The average production cost of Binadhan-11 was Tk. 44642.28 ha-1. The major share
of total cost was human labour, power tiller and fertilizers. The cost of Binadhan-11
cultivation was found higher in Mymensingh (Tk. 47646.89 ha-1) followed by Sherpur (Tk.
45970.44), Jamalpur (Tk. 42483.90) and Kurigram (Tk. 42467.88 ha-1).
From Table 2, it is showed that the average yield of Binadhan-11 was 4250.75 kg (4.3
-1
t ha ) per hectare. The gross return of Biandhan-11cultivation was found higher in
Mymensingh (Tk. 81520.53 ha-1) followed by Sherpur, Jamalpur and Kurigram in Tk.
77053.09, Tk. 60050.18 and Tk. 64051.16 ha-1 among the study areas. The net returns were
Tk. 33873.64, Tk. 31082.65, Tk. 17566.42 and Tk. 21583.28 per hectare followed by
Mymensingh, Sherpur, Jamalpur and Kurigram, respectively. In the study area, the highest
net return was found in Mymensingh district (Tk. 33873.64 ha-1) and the lowest was in
Jamalpur district (Tk. 17566.42 ha-1). The average net return was Tk. 26026.50 ha-1.
The average benefit cost ratio was 1.58 indicates that cultivation of the variety is
profitable to the farmer’s level when all sorts of cost were taken into consideration. The
highest BCR was found in Mymensingh district (1.71) which was followed by Sherpur
(1.68), Kurigram (1.51) and Jamalpur (1.41) districts, respectively.

87
Table 1. Cost of submergence tolerant rice variety Binadhan-11
Cost component Mymensingh Sherpur Jamalpur Kurigram Average
Human labour (man-days ha-1) 22525.21 21500.91 18800.78 19266.71 20523.40
Power tiller (Tk.ha-1) 5350.00 5430.48 5000.13 4860.48 5160.27
Seed (Tk.ha-1) 1350.34 1400.67 1250.08 1000.70 1250.45
Fertilizer (Tk.ha-1) 8940.42 8541.37 8132.07 8181.68 8448.89
Urea (Tk.ha-1) 3640.13 3580.81 3400.66 3600.25 3555.46
-1
TSP (Tk.ha ) 3370.08 3170.42 3050.56 2980.78 3142.96
MP (Tk.ha-1) 1930.21 1790.14 1680.85 1600.65 1750.46
Pesticides (Tk.ha-1) 4100.26 3800.89 4200.12 4000.35 4025.41
Irrigation (Tk.ha-1) 2680.08 2964.66 2470.43 2717.14 2708.08
Interest on operating capital (Tk.ha-1) 1420.37 950.25 1580.08 1040.61 1247.83
Total variable cost (Tk.ha-1) 46366.68 44589.23 41433.69 41067.67 43364.32
Total Fixed cost (Tk.ha-1) 1280.21 1381.21 1050.21 1400.21 1277.96
Total Cost 47646.89 45970.44 42483.90 42467.88 44642.28

Table 2. Profitability of submergence tolerant rice variety Binadhan-11

Items Mymensingh Sherpur Jamalpur Kurigram Average
Yield (kg ha-1) 4910.00 4728.00 3550.00 3815.00 4250.75
Yield (Tk. ha-1) 72160.41 69552.33 53250.14 57750.68 63178.39
By product (Tk. ha-1) 9360.12 7500.76 6800.18 6300.48 7490.39
Gross return (Tk.ha-1) 81520.53 77053.09 60050.32 64051.16 70668.78
Total variable cost (Tk.ha-1) 46366.68 44589.23 41433.69 41067.67 43364.32
Total cost (Tk.ha-1) 47646.89 45970.44 42483.90 42467.88 44642.28
Gross margin (Tk.ha-1) 35153.85 32463.86 18616.63 22983.49 27304.46
Net returns (Tk.ha-1) 33873.64 31082.65 17566.42 21583.28 26026.50
Benefit cost ratio (Undiscounted) 1.71 1.68 1.41 1.51 1.58

District

Fig. 1. Undiscounted Benefit Cost Ratio

Problems and Constraints of Farmers and Its Probable Solutions

The reasons that hamper the achievement of goals are defined as problems whereas
suggestions are indications of some measures to overcome these problems. The farmers
faced various problems which are discussed below:

88
Scarcity of farm labour and high wage rate
Though the labourers are available in Bangladesh but most of them are unskilled and
in the peak period the required labour was not available in the study area. In the farms most
of the labourers, were totally illiterate. They did not help in scientific way, which reduce
wastage in the production process. About 72, 61, 65 and 80 percent farmers of Sherpur,
Jamalpur, Kurigram and Mymensingh districts, respectively claimed this problem in the
study area. All most 70 percent the farmers reported this problem on an average. To
overcome this problem, the mechanization system should be developed.

Adulterated fertilizers and insecticides

The effectiveness of the used fertilizers and insecticides were very lower in quality
reported by almost all the respondents in the following study. Sometimes the adulteration
rate was very much higher in fertilizers and insecticides that the farmers had to face the loss
the cultivation of Binadhan-11. About 75, 75, 80 and 65 percent farmers of Sherpur,
Jamalpur, Kurigram and Mymensingh districts, respectively reported that the fertilizers were
adulterated. To solve this problem, govt. should take to implement the law and order
properly through the law enforcement agencies.
Table 3. Major problems faced by the farmers under different districts
Districts
Name of the problems Sherpur Jamalpur Kurigram Mymensingh Average
(%) (%) (%) (%) (%)
Scarcity of farm labour and high wage rate 72 61 65 80 69.50
Adulterated fertilizer and insecticide 75 75 80 65 73.75
Short supply and high price of fertilizers 85 80 90 95 87.50
Lack of credit facilities 80 70 75 80 76.25
Transportation problem 55 62 85 57 64.75
Lack of adequate market information 65 65 70 50 62.50

Fig. 2. Major problems faced by the farmers

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Short supply and high price of fertilizers
Fertilizers were the important inputs in rice production. That's why the price hike in
fertilizers was very much burning issue to be discussed by the farmers as they were
interviewed. About 85, 80, 90 and 95 percent farmers of Sherpur, Jamalpur, Kurigram and
Mymensingh districts, respectively reported this problem. On an average about 88 percent
farmers reported this problem as one of the major problems. The government should take
initiative to higher subsidy and proper maintenance of supply and market channel to solve
this problem.

Lack of credit facilities

Working capital is an important factor for the farmers. Most of the farmers reported
that they suffered from shortage of necessary capital during the operation of rice cultivation.
Due to shortage of working capital the farmers could not purchase necessary inputs in a
large volume to meet up their demand in lean period. In the study area, About 85, 70, 75 and
80 percent farmers of Sherpur, Jamalpur, Kurigram and Mymensingh districts, respectively
reported this problem. The govt. and NGOs should take initiative to increase the credit
facilities for the farmers.

Transportation problem
The transportation problems were different for different modes of transportation as
well as for different market locations. Transportation problem becomes serious in the peak
period of Aman and Boro seasons. The transportation cost is higher in those seasons
compare to rest of the year. In the study area, on an average 65 percent farmers reported this
problem. This problem can be solved by the ministry of LGRD and co-operatives to
implement the proper steps.

Lack of adequate market information

Lack of adequate market information was a problem for the farmers. The farmers
could not collect market information rapidly due to the shortage of support service from the
government. About 65, 65, 70 and 50 percentage farmers of Sherpur, Jamalpur, Kurigram
and Mymensingh districts, respectively reported about this problem and the average shows
that 63 percent farmers of all farming systems reported this kind of problem. Adequate
market information should be provided by the media and other informants.

Other Problems
Besides the problems, which are discussed above, the farmers have to face some risk
and uncertainties, which sometimes causes severe losses. These risks may arise due to
various internal and external activities such as inadequate irrigation facilities Lack of
technical knowledge, Homestead and village erosion vulnerability.

90
 Conclusions
It is evident from the above-mentioned discussion that the sample farmers were
profitable to cultivate Binadhan-11 in the study area. But some problems and factors were
influenced it’s profit throughout the production process. If the farmers become more
conscious and use modern implements in agricultural production activities, they will get
maximum profit from the cultivation of Binadhan-11. Submergence tolerant rice variety,
Binadhan-11 should be disseminated throughout the country where frequent or flash flood is
a problem.

References
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