PROFITABILITY ANALYSIS AND DIFFERENT ASPECTS OF JUTE CULTIVATORS IN JAMALPUR DISTRICT

Abstract

Jute Known as the ‘Golden Fiber’, was one of the major cash crops of Bangladesh. The study aims to assess profitability and technical efficiency of Jute. Hundred cultivars of Jute from three upazila namely Islampur, Jamalpur sadar and Melandaha under Jamalpur district were selected for study purpose. A structured questionnaire was constructed for data collection. The results are as descriptive statistics and interpreted based on farmer feedbacks. Findings include that total cost Tk. 62378.51 per hectare, the gross return, gross margin and net return were found to be Tk. 92625, Tk. 50636.00 and Tk. 30246.50 respectively per hectare. Benefit Cost Ratio (BCR) was found to be 1.48 which implies that one-taka investment in Jute production generated Tk. 1.48 in our study. The regression coefficients of Seed cost (X 2 ) and Irrigation cost (X 4 ) and Insecticide (X 5 ) were negative but the coefficient of Human labor (X 1 ), Total fertilizer cost (X 3 ), Insecticide cost (X 4 ) was found negative. In the technical inefficiency effect model experience, training, jute retting technology and Farm size have expected (negative) coefficients. The coefficients of farmer’s age and education 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 Jute. Average estimated technical efficiencies for Jute are 92 percent which indicate that Jute production could be increased by 08 per cent with the same level of inputs without incurring any further cost. Increase of only managerial skills result in a substantial increase of output for Jute. Farmers faced a lot of problems in producing Jute. The problems were social and cultural, financial and technical. Lack of quality seed was one of the most important limitations of producing Jute in the study area. Lack of operating capital, high price of quality seed, high cost of irrigation water, shortage of human labor and lack of quality tillage were the major problems faced by farmers. These are the major constraints for the producers of Jute in the study area. Public and private initiatives should be taken to reduce or eliminate these problems for the sake of better production of Jute.