PROFITABILITY AND TECHNICAL EFFICIENCY OF CHILI PRODUCTION IN SELECTED AREAS OF BANGLADESH

Abstract

The present study was designed to measure the profitability and technical efficiency of chili farmers in selected Shibgong, Shonatola, Sariakandi upzillas in Bogura district. Primary data were collected from randomly selected 100 farmers during December month. Both tabular and functional analyses were applied in this study. The major findings of the study reveal that chili production is profitable. Total cost of production was Tk. 399973 per hectare. Gross returns was Tk. 707546 per hectare and net returns was Tk. 307573 per hectare. Benefit Cost Ratio (BCR) was found to be 1.77 which implies that one taka investment in chili production generated Tk. 1.77. The Cobb-Douglas stochastic frontier production function was used for this study to measure technical efficiency of chili farmers. The coefficients of parameters like human labor, fertilizers and insecticides were positive where human labor and fertilizers are not significant but insecticides is significant and indicated positive effect on chili production. Others, Seed and irrigation were negative and significant indicated that negative effect on chili production. In the technical inefficiency effect model, experience, farm size, extension service and credit service have negative coefficients indicating that this helps in reducing technical inefficiency of chili farmers. The study also identified some problems like insect- pest and diseases, use of fertilizer & pesticide, Scarcity of High yielding seed variety mainly faced by the chili farmers and suggested some recommendations to improve the present production situation so that per hectare yield of chili would possibly be increased.