Profitability and resource use efficiency of potato cultivation in Munshiganj district of Bangladesh

SAARC J. Agri., 15(2): 193-206 (2017) DOI: http://dx.doi.org/10.3329/sja.v15i2.35151 PROFITABILITY AND RESOURCE USE EFFICIENCY OF POTATO CULTIVATION IN MUNSHIGANJ DISTRICT OF BANGLADESH H.K. Sujan1*, F. Islam1, M.H. Kazal2 and R.K. Mondal3 1 Faculty of Agribusiness Management, Sher-e-Bangla Agricultural University, Dhaka 1207, Bangladesh 2 Department of Development and Poverty Studies, Sher-e-Bangla Agricultural University Dhaka 1207, Bangladesh 3 Department of Agricultural Economics, Sher-e-Bangla Agricultural University Dhaka 1207, Bangladesh ABSTRACT Potato is the third largest food crop in Bangladesh by tonnage of production. Its acreage and production are also increasing in day after day. This study was accomplished to examine the profitability and resource use efficiency of potato cultivation in five upazilas of Munshiganj district of Bangladesh. A total of 52 farmers were selected randomly from the study area. Data were collected through farm survey by using a suitable pre-tested questionnaire in February-March, 2016. Profitability analysis, Cobb-Douglas production function, MVP, MFC and Farm Budgeting model were used to analyze the objectives. Average gross return, gross margin and net return were found Tk. 3,47,200, Tk. 1,47,125 and Tk. 1,17,300, respectively. Benefit-cost ratio was found 1.51 and 1.74 on full cost and variable cost basis, respectively. The key production factors, i.e. human labour, land preparation, seed, fertilizer, insecticides and irrigations had significant effect on gross return of potato. Resource use efficiency analysis revealed that farmers were not efficient in using resources in potato cultivation. Human labor, land preparation, insecticide and irrigation were under-utilized and therefore increasing use of those resources could maximize the profitability. Seed and fertilizer constituted major parts of the cost of production hence optimum use of those resources could also enhance the profitability and resource use efficiency of potato cultivation in Munshiganj district. Keywords: Potato, profitability, resource use efficiency. INTRODUCTION Potato is an important and leading staple crop of the world and occupied topmost position after rice and wheat in respect of production consumption (Akhter et al., * Corresponding author e-mail: Received: 25.05.2017 Accepted: 20.10.2017 194 H.K. Sujan et al. 1998). Bangladesh experienced much progress in its potato production in the past decades as it has increased by 5 percent per annum (Islam et al., 2000). The country has ranked seventh position in the world in terms of potato production in 2015 (FAO, 2015). In 2014-15, around 92,54,000 metric tons of potato have been produced from 4,71,000 hectares (3.09% of total cultivated area) of land in Bangladesh (BBS, 2015). Among all crops, potato (Solanum tuberosum L.) is one of the most important vegetables as well as cash crops in Bangladesh (Haque et al., 2012). In fact, short cycle of potato frees the land for cultivating other crops (Walker et al., 1999). Per unit of land and time potato was more productive than any other food crops (Azimuddin et al., 2009). The annual growth rates of area, production and yield of potato were estimated at 7.14%, 9.90% and 2.76% during 1989-90 to 2008-09, respectively (Miah et al., 2011). Potato production is highly profitable and it could provide cash money to farmer. In terms of profitability, potato production was more attractive than any other winter vegetables. Per unit yield and gross return of potato were found higher than other competitive crops (Akhter et al., 2001). The farmers who used quality seed obtained higher yield and profit. But scarcity of quality seed compelled some farmers to use the inferior seed (Huq, 1998). As a result, the Tuber Crop Research Centre (TCRC) of BARI released 40 HYV potato varieties which have good yield potential and tolerant to insect pests and diseases (Haque et al., 2012). BADC also produces quality potato seeds under contract farming and distribute them to the producers, yet evidence is lacking (Moniruzzaman et al., 2015). Diamant, Cardinal and Granola are the most popular varieties among all the released varieties of BARI and are largely grown in Munshiganj, Rangpur and Bogra district respectively (Khalil et al., 2013). These varieties have been distributed to the farmers through different GOs, NGOs and private firms. Potato, a high biomass yielder, utilizes huge quantities of nutrient particularly nitrogen, phosphorus and potassium (Elias et al., 1992). Efficiency and input use pattern varies with the socio-economic characteristics of farmer or manager (Islam et al., 2016). Technical and managerial skills on cultivation practices and provision of technical knowledge to control diseases as well as proper allocation of inputs and available resources would help to increase profitability and productivity of potato (Bajracharya and Sapkota, 2017). Several studies in other countries have shown that there is significant potential for raising agricultural output or profitability by improving productive (technical and allocative) efficiency using existing resources (Rahman, 2002). Yadav et al. (2015) worked on productivity, profitability and resource use efficiency of potato in India and found that potato based various cropping sequence differ significantly for most of the desirable parameters which influence the utilization of natural resources. Bajracharya and Sapkota (2017) conducted a research on profitability and productivity of potato (Solanum tuberosum) in Baglung district of Nepal and found the average productivity was 9.89 ton per hectare with per hectare total cost and total income of NRs. (Nepali rupees) 1,97,186 and NRs. 2,68,047, respectively. Islam et al. (2000) carried out a research on the title “Potato production system in Bangladesh: RESOURCE USE EFFICIENCY OF POTATO CULTIVATION 195 Resource use, productivity, efficiency and comparative profitability of true potato seed technology over traditional tuber technology” and found from efficiency analysis that the potato growers using TPS technology allocated their resources in rational stage of production. Agricultural production policy decisions in Bangladesh are constrained by lack of information on profitability of growing different agricultural crops (Sarkar et al., 2014). Some economic investigations on potato cultivation in Bangladesh were undertaken by different agencies but which were not adequate. Nevertheless, sufficient number of research work were not undertaken for analyzing the profitability and resource use efficiency of potato production in a major potato producing area like Munshiganj district. So, the specific objective of the present study is to analyze the profitability, resource use efficiency and the factors affecting the production of potato in the selected study area. MATERIALS AND METHODS A micro-level study based on primary cross-section data was designed to attain the obj (...truncated)