FINANCIAL PROFITABILITY AND RESOURCE USE EFFICIENCY OF AROMATIC RICE PRODUCTION IN SOME SELECTED AREAS OF DINAJPUR DISTRICT

Abstract

The study was conducted to examine the profitability and resource use efficiency of aromatic rice production in some selected areas of Dinajpur district in Bangladesh. Besides, attempt had given to examine the profitability of aromatic production by the farmers in the study area, to identify the factors behind the yield variations of aromatic rice production in the study area,to assess the resource-use efficiency of aromatic rice production and to find out the problems faced by the farmers and to recommend some policy guidelines. Dinajpur district was selected purposively for the study on the basis of extensive aromatic rice production. A total of 101 aromatic rice cultivators were randomly selected to conducting farm level survey with pre-tested questionnaire. After analysing the data, per hectare gross return, net return and gross margin were found to be Tk. 203570, Tk. 51606 and Tk. 93906 respectively. Total cost of aromatic rice production was calculated at Tk. 148464 per hectare.Benefit Cost Ratio (BCR) was found 1.37. Thus, it was found that aromatic rice production was highly profitable. From Cobb-Douglas production function analysis, it was observed that the coefficients of cost of human labor, cost of seed, cost of urea, gypsum, cost of pesticide and Cost of irrigation were positively significant at different level of probability for aromatic rice production. But the coefficients of cost of animal labor & power, cost of manure, cost of TSP, cost of MoP and Zinc sulphate cost was not significant. Resource use efficiency indicated that all of the resources were under used for aromatic rice production except overutilization of human labour cost and TSP cost. So there was a positive effect of key factors in the production process of aromatic rice production. Low yield and unstable price was most acute problem for aromatic rice production followed by high price and spot scarcity of fertilizers and pest and disease infestation.