PROFITABILITY AND TECHNICAL EFFICIENCY OF POTATO PRODUCTION IN SOME SELECTED AREAS OF MUNSHIGANJ DISTRICT IN BANGLADESH

Abstract

Bangladesh is predominantly an agricultural country. Agriculture has an enceinte contribution to the Gross Domestic Product (GDP) of the country. Various types of crops are produced in this country. These crops can be categorized into two; food crops and cash crops. Potato is one of the food-stuff of the most people of the world as well as Bangladesh. This research was conducted to find out the problems that the farmers face in cultivation and to study the trend of production of potato and relationship between production and export of potato of Bangladesh. The study aimed to analyze the technical efficiency and profitability of potato production by smallholder farmers in Munshiganj district. A total of 60 farmers were selected randomly from the study area. Data were collected through farm survey by using a suitable pre-tested questionnaire in December 2019-January 2020. Profitability analysis, Cobb-Douglas production function, VP, FC and Net return model were used to analyze the objectives. The major findings of the study reveal that potato production is profitable. Average gross return, gross margin and net return were found Tk. 2,23,202.71, Tk. 1,40,324.91 and Tk. 89,045.35, respectively. Benefit-cost ratio was found 1.66. The key production factors, i.e. human labour, land preparation, seed, fertilizer, insecticides and irrigations had significant effect on gross return of potato. In the technical inefficiency effect model experience, farm size, training and credit service have expected (negative) coefficients. The negative coefficient of farm size implies that large farm households are technically more efficient than small farm households. The negative coefficient of credit service postulates that farmers taking loan for producing potato are technically more efficient than others. The coefficient of training implies that training farmers are technically more efficient than non- training farmers. The positive coefficient of extension service is positive meaning that these factors have no impact on the technical inefficiency. That is, these factors do not reduce or increase technical inefficiency of producing potato. Major problem faced by the potato farmers were lower price of potato during harvesting period, price fluctuation, shortage of capital, high charge of cold storage, lack of good quality seed, perish ability of potato, poor storage facility, higher price of inputs and lack of marketing facility etc. Proper steps should be postulated by Government to puzzle out this problem. At long last it will be helpful to the planners and policy makers in contriving micro or macro level policy for the enlargement of potato production in the country.