PROFITABILITY AND RESOURCE USE EFFICIENCY OF GROUNDNUT PRODUCTION AT SOME SELECTED AREAS OF MYMENSINGH DISTRICT IN BANGLADESH

Abstract

The study was conducted in the Mymensingh district to determine the socio-economic condition, profitability and resource use efficiency of groundnut growers. To achieve the objectives of the study total 60 respondents were selected as samples for the present study from four villages. A simple random sampling technique was used for the selection of samples. Both primary and secondary data were used for the study. The amount of labour used for the production of groundnut is 107 man-days per ha where 47 man-days are family labour. The total variable cost and total fixed cost are Tk 69291.50 and Tk. 10309.70 per ha. Finally, total cost, gross returns, and net returns are Tk. 79601.20, Tk. 100400 and Tk.20798.70 per acre. It was evident from the study that the benefit-cost ratio of groundnut farming was 1.26:1. In order to assess the contribution of the major variables to the groundnut production process the Cobb-Douglas production function has been chosen. To determine the resource use efficiency of groundnut cultivation, the study revealed that only DAP is overused on the other hand Urea, irrigation, human labour, insecticide, and gypsum are underused. In the study area, farmers suffered by various constraints such as lack of money, lack of labour, lack of water for irrigation, lack of market for selling products, lack of education, poor agricultural extension service delivery, lack of knowledge, etc. About 96% of farmers mentioned the low price of groundnut. This survey depicts that 61% of farmers mentioned the lack of money. The high cost of improved varieties is noted by 78 % of farmers. The study suggested improving the storage facilities and active the organization to solve the marketing and money problem of the farmers.