FINANCIAL ANALYSIS AND FACTORS DETERMINING THE PROFITABILITY OF BORO RICE FARMING IN DINAJPUR DISTRICT

Abstract

The study is an attempt to determine the profitability of boro rice production and to identify the factors affecting the profitability of boro rice production in parbatipur and phulbari upazila of Dinajpur district. 100 farmers from the research region were interviewed for primary data. A purposive sampling strategy was used to choose the sample farms. The study's primary results established that boro rice farming was lucrative. Cobb-douglas stochastic frontier production function was utilized to determine the variables affecting the profitability of boro rice production. Variable cost, fixed cost and gross return of production of boro rice were BDT 81803, BDT 39092 and BDT 139256 respectively. Benefit Cost Ratio (BCR) was found to be 1.15, which implies that one taka investment in boro rice production would generate BDT 1.15. The inputs like cost of land preparation, fertilizer and manure and irrigation were found to be positive and significant at 5% level of significance. Additionally, the research revealed many significant issues for boro rice producers, including low prices for output, expensive prices for high-quality seed, fertilizers, and irrigation, capital shortages, inadequate storage facilities, and insufficient extension service. Following an analysis of the challenges encountered by farmers, many proposals such as reduced input rice, flexible lending facilities, and price stability have been made in order to enhance the farmers' overall economic position via boro rice production.