PROFITABILITY AND RESOURCE USE EFFICIENCY OF TOBACCO CULTIVATION IN SOME SELECTED AREAS OF LALMONIRHAT DISTRICT OF BANGLADESH

Abstract

Bangladesh is predominantly an agricultural country. Tobacco is the narcotic crop. The purpose of the study was to describe the socio-economic characteristics of tobacco farmers in the study area; to measure the profitability and resource use efficiency of tobacco in selected areas and to identify problem faced by the farmers in tobacco production in the study area. Primary data were collected from randomly selected 61 farmers from two upazillas named Lalmonirhat sadar and Kaliganj of Lalmonirhat district. Both descriptive and econometric model were applied in this study. Total cost of tobacco production was Tk. 175601 per hectare. Gross return of tobacco was Tk. 209279 per hectare, gross margin of tobacco was Tk. 86340 per hectare and that of net return was Tk. 33677 per hectare. Benefit Cost Ratio (BCR) was found to be 1.19. Production function analysis suggested that, among the variables included in the model, cost of hired labor, cost of urea and cost of MOP had a positive and significant effect on the gross return of tobacco production. Resource use efficiency indicated that hired labor, seed, Urea, TSP and MOP were underutilized and irrigation and insecticide were overutilized by tobacco farmers. The study identified some problems and constraints faced by the tobacco farmers .Instituitional supports from government and Nongovernment organizations for credit, input and technology may be

helpful to increase

tobacco cultivation as well as income of tobacco farmers.