PROFITABILITY AND TECHNICAL EFFICIENCY OF HYBRID AND LOCAL VARIETY COTTON PRODUCTION IN SELECTED AREAS OF KUSHTIA DISTRICT

Abstract

Cotton plays a key role in the national economy in terms of generation of direct and indirect employment in the Agricultural and Industrial sectors mainly textile and Clothing industries constitute the largest manufacturing sub-section in Bangladesh's economy. The present study was designed to measure the profitability and technical efficiency of hybrid and local Cotton farmers in selected areas of three upazillas namely Bheramara, Daulatpur, Mirpur under Kushtia district. Primary data were collected from randomly selected total 70 farmers from the study area. Both tabular and functional analyses were applied in this study. The major findings of the study reveal that Cotton production is profitable. Total cost of production of Hybrid Cotton and Local Cotton were Tk. 208399.60 and Tk. 205845.62 per hectare respectively. Gross return of Hybrid Cotton and Local Cotton were Tk. 455000 and Tk. 340500 per hectare respectively and net returns of Hybrid Cotton and Local Cotton were Tk. 246600.40 and Tk. 134654.38 per hectare respectively. Benefit Cost Ratio (BCR) was found to be 2.18 in Hybrid Cotton Production which implies that one-taka investment in Hybrid cotton production generated Tk. 2.18. Benefit Cost Ratio (BCR) was found to be 1.65 in Local cotton Production which implies that one-taka investment in Local Cotton production generated Tk. 1.65. The Cobb-Douglas stochastic frontier production function was used for this study to measure technical efficiency of Cotton farmers. In Hybrid Cotton Production, the coefficients of parameters Urea, MoP and Insecticide was negative. Where Human Labour, TSP, Gypsum and Irrigation was found positive and significant at 10 percent level of significant. In Local Cotton Production, the coefficients of parameters Urea, MoP, Gypsum and Insecticide was negative. Where Human Labour, TSP and Irrigation was found positive and significant at 10 percent level of significant. In the technical inefficiency effect model for Hybrid Cotton Production, farm size, training and experience have negative coefficients indicating that this helps in reducing technical inefficiency of Cotton farmers. In the technical inefficiency effect model for Local Cotton Production, farm size has negative coefficients indicating that this helps in reducing technical inefficiency of Cotton farmers. Cotton is a necessary raw material for maintaining Bangladesh’s cur rent flow of garments export. However, although the demand of cotton is steadily increasing, there is hardly any supply from within the country. The study also identified some problems and constraints faced by the Cotton farmers and suggested some recommendations to improve the present production situation so that yield of Cotton would possibly be increased.