FINANCIAL PROFITABILITY AND TECHNICAL EFFICIENCY ANALYSIS OF JUTE PRODUCTION IN SOME SELECTED AREAS OF MYMENSINGH DISTRICT

Abstract

The present study was conducted to estimate the financial profitability of jute production in Gafargaon and Trishal Upazilla of Mymensingh district of Bangladesh. Three villages from each Upazilla were purposively selected for this study. In total, 80 jute farmers were selected purposively for the study. Out of 80 samples, 40 were from Gafargaon Upazilla and 40 were from Trishal Upazilla. Primary data were collected during August to September of 2019 through field visit. The required data were collected through structured interview schedule from the 80 jute farmers. The secondary information sources were IJSG reports, BJRI reports, BJSA report, Bangladesh economic review, BBS, different journals, newspaper, relevant websites etc. Descriptive statistics and Cobb-Douglas production function model were used to address the main objectives of the study. The results of the study showed that, per hectare average total cost for producing jute was Tk. 96170.77. Per hectare gross returns above cash cost from jute production was estimated Tk. 122201.62 and per hectare average net return of jute production was Tk. 26030.85. It was also revealed that net return was higher at Trishal upazilla. The study considered human labor cost, land preparation cost, seed cost, fertilizer cost, manure cost and pesticide cost, these six variables. The study revealed that land preparation cost, fertilizer cost and human labor cost had significant impact on jute production. The study also identified that jute producers were facing some problems such as: low price of jute, high labor cost, unavailability of human labor, want of retting place etc. If these problems could be solved within the shortest possible time, all the jute producers could be able to earn a much higher profit than the existing level. On the basis of findings, some recommendations were made for the development of jute sector in Bangladesh.