Profitability, input demand and output supply of mustard production in Bangladesh
PROFITABILITY, INPUT DEMAND AND OUTPUT SUPPLY OF MUSTARD PRODUCTION IN BANGLADESH
113 / 0
Authors
-
SANZIDUR RAHMAN
School of Geography, Earth and Environmental Sciences, University of Plymouth, Plymouth, PL4 8AA, England, UK
-
MOHAMMAD MIZANUL HAQUE KAZAL
School of Geography, Earth and Environmental Sciences, University of Plymouth, Plymouth, PL4 8AA, England, UK
Keywords:
Bangladesh, Input demand, Mustard, Output supply, Profitability, Translog profit functionAbstract
This paper estimates profitability, input demand and output supply of mustard production at the farm-level in Bangladesh utilizing a survey data of 206 mustard farmers from two regions of Bangladesh by applying a profit function approach. Mustard production is profitable at the farm level (Benefit Cost Ratio = 1.34) with no adverse influence of farm size on yield and profitability. Mustard farmers are also responsive to changes in market prices of inputs and outputs. Mustard price is the most dominant determinant of output supply and input demand. A 1% increase in mustard price will increase output supply by 0.62% and increase demand for mechanical power, fertilizer and labour by 1.06%, 1.05% and 1.01%, respectively but will decrease seed demand by 3.96%. The fixed factors have no role except land fragmentation substantially reducing seed demand. Policy implications include price policy to improve mustard price and tenurial reform aimed at improving land fragmentation and smooth functioning of the hired labour market in order to increase production and profitability of mustard in Bangladesh.
Downloads
References
Azam M G, Mahmud J A, Ahammad K U, Gulandazi M A and Islam M 2013. Efficiency of different dose of zinc on growth, productivity and economic returns of mustard in AEZ 11 of Bangladesh. Journal of Environmental Science and Natural Resources, 6: 37-40.
Baksh M E 2003. Economic efficiency and sustainability of wheat production in wheat-based cropping systems in north-west Bangladesh. Ph.D. Dissertation, Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh, Bangladesh.
BB 2013. Economic Trends (monthly publications, December 2013). Bangladesh Bank, Dhaka, Bangladesh.
http://www.bangladesh-bank.org/pub/archive.php. BBS, 2016. Yearbook of Agricultural Statistics of Bangladesh 2014. Bangladesh Bureau of Statistics, Dhaka, Bangladesh.
BBS 2014. Yearbook of Agricultural Statistics of Bangladesh 2012. Bangladesh Bureau of Statistics, Dhaka, Bangladesh. Boomiraj K, Chakrabarti B, Aggarwal P K, Choudhary R and Chander S 2010. Assessing the vulnerability of Indian mustard to climate change. Agriculture, Ecosystems and Environment, 138: 265-273.
Dhakal S C, Regmi P P, Thapa R B, Sah S K and Khatri-Chhetri D B 2015. Resource use efficiency of mustard production in Chitwan district of Nepal. International Journal of Applied Science and Biotechnology, 3: 604-608.
Farooq U, Young T, Russell N and Iqbal M 2001. The supply response of Basmati rice growers in Punjab, Pakistan: price and non-price determinants. Journal of International Development, 13: 227-237.
Hasan M K 2006. Yield gap in wheat production: a perspective of farm specific efficiency in Bangladesh. Ph.D. Dissertation, Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh, Bangladesh.
Hossain M 1989. Green Revolution in Bangladesh: Impact on Growth andDistribution of Income. UniversityPress Limited, Dhaka, Bangladesh.
Hossain M, Quasem M A, Akash M M and Jabber M A 1990. Differential Impact of Modern Rice Technology: The Bangladesh Case. Bangladesh Institute of Development Studies, Dhaka.
Hossain M M, Haider M R and Hasan A F M F 2013. Variables contributing to farmers' perception on mustard cultivation in between Aman and Boro Rice. Bangladesh Journal of Extension Education, 25: 95-103.
IMF 2005. Bangladesh Poverty Reduction Strategy Paper. IMF Country Report No. 04/410, 2005, Washington, DC, USA.
Kazal M M H, Rahman S, Alam M J and Hossain S T 2013. Financial and Economic Profitability of Selected Agricultural Crops in Bangladesh. NFPCSP-FAO Research Grant Report #05/11, Dhaka, Bangladesh, July 2013. http://www.nfpcsp.
org/agridrupal/sites/default/files/ToR%205-Final%20Techn ical%20 Report_MAFI,%20SAU_Dr.Kazal_Submit.pdf.
Mallik M S A 2013. Quality seed production of oilseed crops: An overview. Paper presented in the workshop on 'Modern Techniques for Quality Seed Production of Oilseed Crops'. Oilseed Research Centre, Bangladesh Agricultural Research Institute, Gazipur.
Miah M A M, Afroz S, Rashid M A and Shiblee S A M 2015. Factors affecting the adoption of improved varieties of mustard cultivation in some selected sites of Bangladesh. Bangladesh Journal of Agricultural Research, 40: 363-379.
MoA2008. Agricultural Handbook of Bangladesh, 2007. Ministry of Agriculture, Government of Bangladesh, Dhaka. Mondal N A, Hossain S M A, Bhuiyan S U and Jahiruddin M 2008. Productivity ofrainfedmustard in relation to tillage and mulching. Bangladesh Journal of Agricultural Research, 33: 597-606.
PC 1998. The Fifth Five Year Plan (1997-2002). Ministry of Planning, Government of Bangladesh, Dhaka, Bangladesh. PC 2011. The Sixth Five Year Plan (2011-2015). Ministry of Planning, Government of Bangladesh, Dhaka, Bangladesh.
Rahman S 1998. Socio-economic and environmental impacts of technological change in Bangladesh agriculture. Ph. D. Dissertation, Asian Institute of Technology, Bangkok, Thailand.
Rahman S 2003. Profit efficiency amongBangladeshi rice farmers. Food Policy, 28: 487-503.
Rahman S and Hasan M K 2011. Environmental constraints and profitability relationships in agriculture: a case study of wheat farming in Bangladesh. Journal of the Asia Pacific Economy, 16: 630-643.
Rahman S and Parkinson R J 2007. Soil fertility and productivity relationships in rice production system. Bangladesh. Agricultural Systems, 92: 318-333.
Rahman S and Rahman M 2008. Impact of land fragmentation and resource ownership on productivity and efficiency: the case of rice producers in Bangladesh. Land Use Policy, 26: 95-103.
Rahman S and Rahman M S 2014. Exploring the potential and performance of maize production in Bangladesh. International Journal of Agricultural Management, 3: 99-106.
Rahman S, Rahman M S and Rahman M H 2012. Joint determination of the choice of growing season and economic efficiency ofmaize inBangladesh. Journal of the Asia Pacific Economy, 17: 138-150.
Sidhu S S and Baanante C A 1981. Estimating farm-level input demand and wheat supply in the Indian Punjab using a translog profit function. American Journal of Agricultural Economics, 63: 237-246.
Stata Corp 2007. Stata Statistical Software: Release 10.0. College Station, TX: Stata Corporation.
