PROFITABILITY AND TECHNICAL EFFICIENCY OF CHILI PRODUCTION IN SOME SELECTED AREAS OF BOGURA DISTRICT IN BANGLADESH

Abstract

The study aims to assess profitability and technical efficiency of chili. Hundred cultivators of chili from three upazila namely Kahaloo, Shonatola, Sariakandi under Bogura district were selected for study purpose. A structured questionnaire wasconstructed for data collection. The results are as descriptive statistics and interpretedbased on farmer feedbacks. Findings include that total cost (TC) for chili is Tk.131450.01; gross return (GR) of green chili is Tk. 191800; gross margin (GM) forgreen chili is Tk. 82191.40. All the calculations are based on per hectare. Thus,producing chili net return (NR) is Tk. 60349.99. The chili is attractive for farmers to produce as its benefit cost ratio (BCR) shows 1.4591 in our study. The regression coefficients of Seed cost and Irrigation cost and Insecticide were negative but the coefficient of Human labour, Total fertilizer cost, Insecticide cost was found negative.In the technical inefficiency effect model experience, farm size, extension service andcredit service have expected (negative) coefficients. Average estimated technicalefficiencies for chili are 85 percent which indicate that chili production could beincreased by 15 per cent with the same level of inputs without incurring any furthercost. Increase of only managerial skills result in a substantial increase of output forchili. Lack of agricultural credit, lack of farmer's association and lack of cropinsurance were the major problems for green chili cultivation. Farmers expect to availsufficient credit facilities along with regular government extension services, strong market monitoring authority and better transportation facilities for assisting chilicultivation. Moreover, a farmers' association is needed to be formed in chiliproduction area. The study revealed that a considerable improvement took place toincrease household income of the farmers in the study area and to improve thesocioeconomic conditions with the introduction of large-scale commercial chiliproduction. The study also identified some problems and constraints faced by the chilifarmers and suggested some recommendations to improve the present production situation so that per hectare yield of chili would possibly be increased.