PROFITABILITY AND TECHNICAL EFFICIENCY ANALYSIS OF POTATO PRODUCTION IN SOME SELECTED AREAS OF NAOGAON DISTRICT

Abstract

The present study was designed to measure the profitability and technical efficiency of Potato farmers in selected areas of three areas as Naogaon sadar upazilla, Bodolgachi and Atrai upazilla under Naogaon District. Primary data were collected from selected 25 farmers of each study area randomly. Total sample was 75. Both tabular and functional analyses were applied in this study. The major findings of the study reveal that Potato production is profitable. Total cost of production was Tk. 173221.86 per hectare of potato land. Gross returns was Tk. 273314 per hectare and net returns was Tk. 1,00092 per hectare. Benefit Cost Ratio (BCR) was found to be 1.58 which implies that one taka investment in Potato production generated Tk. 1.58. The Cobb-Douglas stochastic frontier production function was used for this study to measure technical efficiency of Potato farmers. The significant coefficient of parameter like Human labour cost was negative whereas Seed cost, Fertilizer were found positive and significant. 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 Potato farmers. The study revealed that a considerable improvement took place to increase household income of the potato growers in the study area and to improve the socioeconomic conditions with the introduction of large-scale commercial Potato production. Major problems which faced by the potato growers were High price of Fertilizers and Insecticides, NonAvailability

of Quality Seeds, Low Price of Product at Late Harvesting Period etc. Yield of Potato would possibly be increased using new modern variety of potato. Major recommendations like both the government and private institutions should take necessary steps to ensure the availability of quality HYV seeds at the door steps of farmers at reasonable price. Government should take necessary steps to train the farmers about the proper use of inputs through Upazilla Extension officer, Government also should take initiatives to search for new market for potato during the harvesting season so that they can get right price are required to improve the present situation.