AN ECONOMIC STUDY OF BANANA PRODUCTION BY THE BANGLADESH KRISHI BANK BENEFICIARIES IN SOME SELECTED AREAS OF SYLHET DISTRICT

Abstract

The present study is an attempt to examine the socioeconomic status of banana growers, adequacy, utilization and repayment of credit, the profitability of banana production under the Bangladesh Krishi bank loan in the study area. For these purposes, primary data were collected from 60 borrowers of the bank in selected area of Fenchuganj Upazila, who were randomly selected. Both tabular and econometric techniques were used to analyze the collected data. The findings of this study revealed that the respondents were educated and most of them were of the active age group of 41 years to above because they were conscious of the importance of education. In the case of the main occupation of banana farmer 40%, 30%, 21.67%, 5% and 6.67% were involved in business, agriculture, service, teacher and others, respectively. Most of the respondents were within medium family size in the study area. The borrowers’ saving position was more satisfactory in the study area because of good earning capability. The average amount of annual savings of all the respondent’s family, in general, was Tk. 4,62,554 during the study period. The adequacy of the loan was satisfactory. Borrowers were found to be acquainted about purposive utilization of loan money. Most of the credit amount (92.64 percent) was utilized for farming purposes. Status shows that repayment was fully satisfactory (100 percent). Multiple regression models indicate that amount of loan received, savings, age, and return from production were significant factors affecting of loan repayment. It was estimated that average annual total cost of production of banana was Tk. 240371 per acre, while gross return and net returns were Tk. 331221 per acre and Tk. 90850 per acre respectively. The benefit-cost ratio of banana cultivation was 1.38 indicating that one taka investment resulted in a net benefit of Tk. 0.38. Finally, the study identified some major problems of banana cultivation such as insufficiency of credit, the high price of inputs, lack of human labor, lack of quality sucker, lack of storage facilities etc. according to survey questionnaires answer. The credit of Bangladesh Krishi Bank benefited the credit receivers in respect of increasing income and social status. The respondents suggested some measures overcome the difficulties so that it might be more effective to bringing favorable impacts among the borrowers of the study area. The determinations of the study will generate basic economic data on the production practices of banana. The study will be helpful to the planners and policy makers in contriving micro or macro level policy for the increasing of banana production in the country.