PROFITABILITY ANALYSIS OF CHILLI PRODUCTION IN SOME SELECTED AREAS OF SINGAIR UPAZILA

Abstract

Chilli is a valuable spice and also one of the most important cash crops grown in Bangladesh. The main objective of this research was to determine the profitability of chilli production by examining the socio-demographic profile of chilli farmers. The Singair upazila was chosen for the research due to its considerable chilli production. Through an interview schedule, data were collected from 100 sample farmers using a random sampling approach. After analyzing the data, it was determined that the gross return, gross margin and net return were found to be Tk. 367683.60, Tk. 271776.35 and Tk. 226520.05 per hectare respectively. Average total cost of chilli were estimated to be Tk. 141163.55 per hectare. The Benefit Cost Ratio (BCR) for chilli cultivation was determined to be 2.60. While the regression coefficients for land preparation cost, cost of seed , cost of cow dung and pesticide cost were all positive, the coefficients for cost of MoP and irrigation cost were all negative and significant at 1% ,5% and 10% level of significance. The human labor, cost of Urea, and cost of TSP were determined to be insignificant in relation to the return on chilli cultivation. The positive indication shows that the return on chilli can be enhanced by raising land preparation cost, cost of seed, cost of cow dung and pesticide cost, while the negative sign suggests that the return on chillis may be decreased by lowering cost of MoP and irrigation cost. It was discovered that chilli cultivation was very lucrative. Additionally, this research highlighted a number of problems and constraints related to chilli production. These were lack of operating capital, high price of quality seed, high cost of irrigation water, low price of output, attack of pest, lack of quality seed, lack of scientific knowledge of farming, shortage of human labor, adulteration of fertilizer, insecticides, and pesticide, poor storage facilities in house and natural calamities etc.