Assignment On

“Measuring the Cost of production and Returns of HYV Boro rice

farmers: A study in Comilla District”

Submitted TO

Dr. Shaikh Moksadur Rahman

Associate Professor

Department of Management Studies,

Comilla University

CHAPTER 1: Introduction

1.1 Executive Summary This study is on the measurement of the cost and return of HYV boro rice farmers in comilla

district. This study contributes to a better understanding of the factors that influence financial

and economic profitability of HYV boro rice. In addition, this study highlights how cost of labor

and commodities used in agriculture affect profitability and production of HYV boro rice crop in

comilla district.

To achieve the above objectives, the study has analyzed both primary and secondary data. The

primary data were generated through conducting a well-designed farm level survey. The survey

was conducted in comilla district covering 5 farm households in total. The farm households were

categorized based on regions and farm size.

Farming is the ancient and the most common profession in Bangladesh. Most of the people of

Bangladesh live in village and most of the villagers (62% manpower in agriculture) are involved

in farming. One of the main reasons of having common interest to farming is: the land is very

fertile and most of the part of Bangladesh is plain. Another interesting thing is Bangladeshi

people naturally good in farming. Agricultural sector is the single largest contributor to GDP.

The crop sub-sector dominates the agriculture sector contributing about 72% of total production.

The agriculture sector contributed 16.33 percent of total GDP in FY13-14. Besides, it has

indirect contribution to the overall growth of GDP. Many sectors included in broad service sector

such as wholesale and retail trade, hotel and restaurants, transport and communication are

strongly supported by the agriculture sector. This sector also provides employment for around

30% of the total labor force and seems to have managed to feed around 160 million people of the

country (BBS, 2011). During the last decade, significant changes took place in agriculture sector

which includes, among others, new production structure, use of high yielding varieties supported

by fertilizers, pesticides, mechanized cultivation, irrigation etc. All these changes have

contributed much to the increased production of food grains. The output growth of agriculture

sector eased down from the fiscal year 2010 high of 5.2 percent to lower but still strong and

above trend of 5 percent growth in fiscal year 2011.

The name HYV has been originated for its high yielding capacity. In the decade of 1960, HYV

was introduced and through the pass of time this HYV has been extended very rapidly to meet

the demand of the cereals in the market. Time of transplantation of HYV is January to February

and reaping time is April to May. It demands adequate irrigation, fertilizer, insecticides and

intercultural practices and farmers have to invest more money for the application of these inputs.

Our task on this study to sum up the cost of productions of HYV boro rice to find out total cost,

and calculate the return from its investment.

1.2 Scope and objective of the study Bangladesh is an agricultural country. It is the largest employment sector in Bangladesh. As of

2016, it employs 47 percent of total labor force and comprises 16 percent of the country’s GDP.

HYV boro rice is popular in Bangladesh for its high productivity and profitability. Most of the

farmers in comilla district, cultivate hybrid boro seeds as it more profitable and environment

friendly. So scope of the study is more favorable to us.

Our principle objectives of this study are:

To know about the Agriculture in Bangladesh.

To know about HYV Boro Rice Production in Comilla District.

To measure cost of Production of HYV Boro Paddy in Comilla District.

To Measure cost and Return of HYV Boro Paddy in Comilla District.

To find out Problems of Agriculture in Comilla District.

To reveal Opportunities of Agriculture in Comilla District.

Recommend some necessary steps to solve the existing problems.

1.3 Methodology This part examines the research methodology which generally means the selected methods of

achieving the research objectives. To be more precise, it primarily focuses on the method(s) of

data collection along with the justification of using the method(s). It also includes basic

parameters to be chosen related to the selected method(s). In addition to that, the instruments for

gathering data also fall within the definition of methodology of a research.

1.3.1Sources of Data:

The data for this study have been collected both from primary and secondary sources. Secondary

data are drawn from the existing literatures like books, newspaper reports, previous research

works, seminar papers, reports, online etc.

Primary data was collected by observation and Survey from farmers of Gabtoli and Nandir-Bazar

Village. Interview method was followed for collecting the Data.

1.3.2 Data Collection Techniques:

To collect data, in-depth interviews are conducted through questionnaire.

1.3.3 Sampling and Sample Size:

Our tram paper is about measuring the cost of production and returns of HYV Boro rice farmers.

So that we took direct farmers as our respondents as they are very much known about cost and

return of HYV Boro rice. We took five household agricultural farms as our sample.

1.3.4 Data Analysis Tools/ Techniques

There are some tools which are used in analysis. These are various tables’ and charts. Many

statistical tools like arithmetic mean, standard deviation are also used. These instruments are

used in the analysis with the information we got.

1.4 Limitation of the study Some limitations of our study are given below:

Farmers are not educated.

Respondents are not available.

Respondents are not agreeing to face questions.

They are not interested to reveal the actual data.

Lack of technical support to university area as well as individual support.

Lack of experience.

Very limited time which it needs much time for preparing term paper

No momentary allocation

The area on this term paper is very big but we had to finish the work within a very short

phase.

As our sample size was small, our findings might not be fully accurate.

CHAPTER 2: Agriculture of Bangladesh

Bangladesh is primarily an agrarian economy. Agriculture is the single largest producing sector

of economy since it comprises about 30% of the country's GDP and employing around 60% of

the total labor force. The performance of this sector has an overwhelming impact on major

macroeconomic objectives like employment generation, poverty alleviation, human resources

development and food security. Meeting the nation's food requirements remains the key-

objective of the government and in recent years there has been substantial increase in grain

production. However, due to calamities like flood, loss of food and cash crops is a recurring

phenomenon which disrupts the continuing progress of the entire economy. Agricultural holdings

in Bangladesh are generally small. Through Cooperatives the use of modern machinery is

gradually gaining popularity. Rice, Jute, Sugarcane, Potato, Pulses, Wheat, Tea and Tobacco are

the principal crops. The crop sub-sector dominates the agriculture sector contributing about 72%

of total production. Fisheries, livestock and forestry sub sectors are 10.33%, 10.11% and 7.33%

respectively. Bangladesh is the largest producer of World's best Jute, which also known as

natural jute or raw jute. Rice being the staple food, its production is of major importance. Rice

production stood at 20.3 million tons in 1996-97 fiscal years. Crop diversification program,

credit, extension and research, and input distribution policies pursued by the government are

yielding positive results. The country is now on the threshold of attaining self-sufficiency in food

grain production.

2.1Rice

Rice is a staple food in the everyday diet in Bangladeshis. Assuming a normal monsoon,

Bangladesh rice production is forecast to reach 34.2 million tons from 11.7 hectares in FY

2013/14, marginally higher than 34 million tons produce in FY 2012/13. Bangladesh harvests

three rice crops a year Boro (planted in December/ January and harvested in April/May), Aus

(planted in March/ April and harvested in June/July), and Aman (planted in July/August and

harvested in November/ December).

Bangladesh Rice Area and production Estimates

Crop 2011/12

(estimate )

2012/13

(estimate )

2013/14

(estimate )

Area production Area Production Area production

Boro 4750 18600 4750 18800 4700 18500

Aus 1120 2300 1150 2400 1200 2500

Aman 5850 12800 5750 12800 5850 13200

Total

rice

11720 33700 11650 34000 11750 34200

Source: economic review 2013-14

2.2 Maize and Other Coarse Grains Maize is now considered as a substitute for both rice and wheat since it can be grown in all

seasons. From maize one may get food, oil, fuel, fodder and feed. The present yield potential is

too low. It can be increased to the level of HYV wheat provided hybrid varieties are used,

adequate demand is created, and fair prices to the growers can be ensured. The genetic yield

potential of maize is very high. Bangladesh Agricultural Research Institute (BARI) has already

developed five high yielding medium duration maize varieties with grain yield potential of 5-7

Mt/hectare, suitable for flood prone areas. The maize production is planned to increase by 250

percent to 12,500 Mt in 2001/2002 from the benchmark production of about 5,000 Mt. Besides

maize, other coarse grains consisting of barley, sorghum, bajra, and millets have considerable

importance from the point of use of water resources and development of agro-industries.

Considering the increased importance of these minor crops as supplementary food, cattle feed,

and industrial raw materials, an increased production programmed for these crops will be taken

up during the Fifth Plan period, using hybrids.

2.3 Wheat Wheat is not a traditional crop in Bangladesh. Wheat is the second alternative cereal crop in

Bangladesh next to rice. Wheat production has been declining over recent years, from 1.51

million tons in 2002-2003 to 0,844 million tons in 2007-08. The main reason for the decline in

wheat area is weather, which in recent years has been blamed for low yields.

Estimates of total area of wheat crop

Crop 2012/13

(estimate )

2013/14

(estimate )

Percentage changes

over previous year Area

(Acres)

Production

(Hector )

Area

(Acres)

Production

(Hector )

Wheat 10,29,268 4,16,522 10,61,602 4,29,607 3.14%

Source: Statistical year book 2013(ministry of Agriculture)

2.4 Horticultural Crops, Pulses and Oilseeds The environment in Bangladesh is quite rich for the production of a large variety of fruits and

vegetables. Some fruits such as mango, banana, pineapple, jackfruit, etc., have world demand.

The main problem of fruit production is its seasonal nature. Year-round production varieties have

yet to be evolved. Special efforts will be made during the Fifth Plan to produce at least major

fruits and vegetables on a year-round basis and commercialize their production through

appropriate research and development program. At the same time, emphasis will be given on the

qualitative and quantitative improvement of various fruits and vegetables production, including

production of mushrooms, flowers, orchids and shrubs, etc. Production of fruits and vegetables

has been projected to be 3.54 million Mt and 1.82 million Mt, respectively, by the end of the

Plan period.

2.5 Potato Potato is suitable as a security crop in times of rice shortages due to its high carbohydrate content

contributing to improved food security. It is also used as a vegetable by various income groups

of the country. Since it is a short duration crop, its increased use can reduce the pressure on rice

and wheat. Considering the production potential of the crop, potato production is projected to

grow to 2.43 million Mt in 2001/2002. The increased production is expected to come from

expansion in cropped area and increase in yield per hectare. To this end, true potato seed

technology will be encouraged and adopted.

Estimates of total area of potato crop by type

Crop 2012/13

(estimate )

2013/14

(estimate )

Percentage

changes over

previous year

Area

(Acres)

Production

(Hector )

Area

(Acres)

Production

(Hector )

Local 1,77,740 18600 4750 18800 2.70%

High

yielding

Variety

9,19,763 2300 1150 2400 4.29%

total 10,97,503 12800 5750 12800 4.03%

Source: economic review 2013-14. Statistical year book 2012

2.6 Sweet potato Sweet potato is considered as subsistence as well as a poor people's food. Hence, its production

will be encouraged on marginal lands, homestead areas, roadsides and elsewhere as a low input

crop to ensure its continued availability to, and affordability by low income consumers. Sweet

potato production is projected to be 0.66 million Mt in the terminal year of the Fifth Plan.

2.7 Pluses The pulses of Bangladesh comprise of six major crops, namely, lentil, khesari, blackgram,

mungbean, chickpea and pigeon pea. Cowpea occupies an important place in the Chittagong

area. The cropped area and production of these pulses have been on the decline over the past few

years mainly because of the increased emphasis on HYV rice and wheat. But pulses are very

important because of their protein supply to the human diet and nitrogen fixation for soil

nutrition. Since improved technology can increase per hectare yield of pulses substantially, pulse

production is projected to grow to 0.85 million Mt in the terminal year of the Plan as against the

benchmark production of 0.53 million Mt.

2.7 Oilseeds Vegetable oil from oilseeds is the main sources of fats in the average Bangladeshi diet. Its

present level of consumption is only 25 percent of the FAO/WHO recommended level. Efforts

will be made to increase oilseeds production to 0.76 million Mt by the terminal year of the Fifth

Plan. Groundnut, sunflower and soybean have been included in this projected production. New

seed varieties are being used in the defined area to avoid cross-pollination. Production of

foundation and certified seeds of improved varieties and demonstrations of modern technology

are important strategies to increase oilseeds production of the country.

2.8 Cash Crop of Bangladesh: 2.8.1 Jute: Jute is the major fibre crop of the country. Despite the relative decline in importance

of jute in agriculture, potential still exists for the fibre to increase its contribution to the economy

through productivity increases and diversification. The share of raw jute and jute goods in the

total exports of the country has been declining but still remains significant. In this situation,

special measures will be taken during the Plan period to encourage farmers to further intensify

jute production in order to satisfy domestic and export demand. To enable jute to compete with

synthetics, emphasis will be given to related agricultural and technological research efforts. The

raw jute production is projected to go up to 7.24 million bales in 2001/2002 as against 4.87

million bales in 1996/97 through per hectare yield increase, availability of better quality seeds,

and improved provision of extension and credit support to growers.

2.8.2 Tea: Tea is one of the most dynamic agro-based, labour intensive, export oriented

industries of Bangladesh. It plays a vital role in the national economy in both export earnings as

well as in employment generation. Plantation and production of processed tea are the two main

activities in the private sector. In the public sector, green leaf production was promoted through

development projects implemented by the Bangladesh Tea Board. With the introduction of high

yielding varieties, quality planting materials, timely application of production inputs and

installation of modern machinery, tea has undergone further improvement and enabled

Bangladesh to compete more effectively with other exporting countries. Increased production is

expected to come from higher yields and by reducing tea vacancies now existing in the gardens.

2.8.3 Tobacco: Tobacco is one of the important cash crops of the country. The crop grows well

in sandy, well aerated, well drained soils and cool climate. Hence, it is grown as a Rabi crop and

most of the area is concentrated in the greater districts of Kushtia and Rangpur. Due efforts to

expand tobacco cultivation since 1973/74 through support from big cigarette manufacturing

firms self-sufficiency in tobacco production was achieved by 1980/81. However, recognizing

tobacco's adverse effects on health, policies will be adopted to limit its production by the gradual

reduction of cropped area in favour of cotton and pulses. The production of tobacco has been

projected to be 0.04 million Mt by the terminal year of the Fifth Plan.

2.8.4 Cotton: Cotton played a very important role in improving the socio-economic conditions

of the farmers during the previous Plan period. The production has gone up from 45,800 bales in

1983/84 to about 1,00,000 bales in 1996/97. The yield of seed cotton per hectare has reached a

reasonably high level; yet the yield of cotton in the country is low compared to world standards.

The major constraints to increased production are inadequate ginning capacity and seed

multiplication programme, insufficient expertise and material resources, inefficient system of

management, and ineffective extension and marketing organization. Textile mills should

encourage commercial plantation through cooperatives in suitable cotton belts. During the Plan

period, efforts will be made to provide loans to farmers to ensure supply of improved seeds,

fertilizers, plant protection measures, and irrigation and credit facilities to the growers along with

the practicing of improved technologies in the cotton fields. Cotton production has been

projected to be 0.26 million bales by the terminal year of the Fifth Plan as against 0.10 million

bales in 1996/97.

2.8.5 Sugar cane: Sugar is the country's most important agro-industry and sugar cane is one of

the important cash crops. Sugar cane is grown as a 12-15 month crop in a two year rotation with

Aus rice crop during the monsoon season followed in the dry months by oilseeds, wheat or

vegetables. Sugar cane yields in the country are low by world standards and the quality is poor.

The average yield of sugar cane is about 6.1 Mt per hectare with a sugar recovery rate of 8.10

percent. Sugar cane is grown on about 0.18 million hectares of land. Of this, about 0.095 million

hectares are in the sugar mill zone areas and the rest in the non-mill zone areas which produce

sugar cane mostly for making gur consumed by the rural people. Research efforts will be

strengthened to raise yield per hectare through varietal improvement, better management of

water resources, fertilizers and other inputs, improved cropping systems and development of a

sugar cane delivery system from farms to mills. Considering the past consumption trend, milling

capacity and possible growth rate of production, sugar cane production is projected to be 12.37

million Mt in the terminal year of the Fifth Plan as against the benchmark

2.8.6 Betel nut: Betel nut is another cash crop of the country. Generally it is grown all over the

country, but the coastal regions like Chittagong, Noakhali, Barisal, Khulna, comilla and

Mymensing produce more betel nut. Through these is no accurate statistical data about its

cultivation. It is used in producing dyes and gunpowder. It is an old tradition of the country to

take betel nut with leaf.

2.8.9 Silk:Bangladesh silk is worldwide recognized as the best quality silk. The district of

Rajshahi is especially famous for silk. Long before, bulk quality of silk was produced and

exported abroad from this area. During that time this part of Bengal was regarded as the

storehouse of silk.

2.8.10 Rubber: Rubber cultivation was taken up in Bangladesh in the last leg of fifties. Rubber

is a cash crop, but yet its cultivation could not be widely practiced. The south- eastern part of the

country particularly the district of sylhet, moulovibazar, habiganj, mymansing,tangil, Chittagong

hill tracts is suitable for cultivation of rubber

CHAPTER 3: Agriculture of Comilla District

Comilla District is a district of Bangladesh located about 100 kilometers south east of Dhaka.

Comilla established as a district of Bengal by the British in 1790, it included the Sub-divisions of

Brahmanbaria and Chandpur which eventually became separate districts in 1984. Comilla is

bordered by Brahmanbaria districts to the north, Noakhali and Feni districts to the south, Tripura

of India to the east, and Munshiganj and Chandpur districts to the west. Total area of Comilla

district is 3085.17 square kilometers. It is bounded by Brahmanpara, Burichong and Sadarupazila

to the east, Homna and Muradnagar on the north, Monohargonj, Chauddagram and Nangalkot on

the south, and Daudkandi&Meghna to the west. Major rivers passing through Comilla are Gumti,

Dakatia, Titas and Kakri.

Comilla district consists of 16 upazilas, 10 pourashavas and 178 unions. Internal road

communication systems of this district enormously developed in last decade. As a result, it is

now accessible most of the important land marks. Mainly based on agriculture, the economy of

Comilla has been flourished through trade and cottage industries, especially the 'Khadi' textile.

According to the respondent farmers of Comilla village that they cultivate various types of crops.

But, they mainly focused on paddy cultivating. Among various species of paddy they cultivate

Boro 22, Boro 28, Poush 22, Poush 32, Aus, and IRRI 28 etc. Besides, cultivating paddy they

grow various types of seasonal vegetables namely- gourd, bean, potato, eggplants, spinach,

tomato, bitter gourd, cauliflower etc. In the subject village it is seen the villagers are related with

horticulture. In their yard they have guava, jack fruit, mango, papaw, wood-apple trees.

Figure: Farmers are weeding out their crops.

In comilla most of the farmers plough their land 3 times in a year. They use to plant paddy in

their low land and for vegetable they use high land. From the respondents, it is found that they

follow a certain cropping pattern and this pattern depends on the season. It is to mention that,

most of them followed the circle- “Paddy-Paddy-Vegetables” and “Paddy-Vegetables-

Paddy.”

In response to the cropping pattern “Paddy-Paddy-Vegetables” a table is given below and it

will indicate the process of production.

Title IRRI 28 Aus Gourd

Crop Ploughing

Month

Magh Chaitra All the year round

Usage Fertilizer Manure, TSP,

Potash, Urea &

Phosphorus

Manure, TSP,

Potash, Urea &

Phosphorus

Compost and

Manure

Collecting Month Boishakh Shrabon All the year round

Production

(mounds/acre)

54.2 33.3 4,500

(piece/acre)

Table: Cropping pattern of Cultivation in comilla.

Figure: Bean Cultivation in comilla

In comilla most of the farmers are familiar with modern instrumental tools that are used for

farming. From them it has come out that, they use tractor, power tiller hand weedier. We made

percentage calculation for showing the traditional and modern technological method used by the

farmers for cultivating their land. The figure is given below.

Traditional method- 7.69%

Modern method- 92.31%

Figure: Farmer is using Tractor in cultivating field.

CHAPTER 4: Brief discussion on HYV Boro rice

Boro is the most important and single largest crop in Bangladesh in respect of volume of

production. It has been persistently contributing to higher rice production in last successive

years. The weather condition for boro cultivation was favorable in the growing stage this year. In

a subjective manner, farmers were interviewed on some points relating to management system of

seed, fertilizer and rural electricity supply. They opined that proper management and timely

distribution of seed, fertilizer and stable supply of electricity led to a substantial higher

production of boro this year. There was no loss of boro crop in this year.

4.1 Area Total area under boro crop has been estimated 1,18,37,334acres (47,90,305hectares)this year as

compared to 1,17,62,572 acres (47,60,055 hectares)of the last year. The harvested area has

increased by 0.64% this year. Comparative area estimates are shown below

Estimates of Total Area by Type of Boro Crop

Variety 2012-2013 2013-2014 Percentage

changes over

previous year

Area

(in acre)

Area

(in hectare)

Area

(in acre)

Area

(in hectare)

Local

Boro

1,62,957 65,945 1,31,134 53,066 (-) 19.53%

HYV

Boro

1,00,81,907 40,79,927 1,01,34,666 41,01,276 (+) 0.52%

Hybrid

Boro

15,17,708 6,14,183 15,71,534 6,35,963 (+) 3.55%

Total

Boro

1,17,62,572 47,60,055 1,18,37,334 47,90,305 (+) 0.64%

4.2 Yield Rate Average yield rate of Financial Year 2013-14 has been estimated 3.968 metric tons per hectare

which is 0.58%higher than that of last year. Comparison of estimated yield rates of boro is

shown below:

Estimates of Yield Rate by Type of Boro Crop

Variety 2012-2013 2013-2014 Percentage

changes over

previous year

Yield per

acre

(Maunds)

Yield per

hectare

(M.Ton)

Yield per

acre

(Maunds)

Yield per

hectare

(M.Ton)

Local

Boro

22.50 2.075 20.40 1.882 (-) 9.30%

HYV

Boro

41.86 3.861 42.03 3.876 (+) 0.38%

Hybrid

Boro

51.00 4.705 51.29 4.731 (+) 0.55%

Total

Boro

42.77 3.945 43.02 3.968 (+) 0.58%

Note: Above “Total” figures are weighted figures.

4.3 Production Total boro production of Financial Year 2013-14 has been estimated 1,90,07,206 metric tons

compared to 1,87,78,154 metric tons of Financial Year 2012-13 which is 1.22% higher.

Comparative estimates of boro production are shown below:

Estimates of Production by Type of Boro Crop

Variety 2012-2013 2012-2013 Percentage changes

over previous year Production

(M.Ton)

Production

(M.Ton)

Local Boro 1,36,835 99,846 (-) 27.03%

HYV Boro 1,57,51,828 1,58,98,467 (+) 0.93%

Hybrid Boro 28,89,492 30,08,893 (+) 4.13%

Total Boro 1,87,78,154 1,90,07,206 (+) 1.22%

Note: Total figures are rounded off.

CHAPTER 5: Data Analysis & Findings

5.1 Cost of Land and Land preparation: Land preparation is important to ensure that the rice field is ready for planting. A well prepared

field controls weeds, recycles plant nutrients, and provides a soft soil.

Table 1: Cost of land and land preparation for our respondent’s farm

Respondents Farm

size(Acre)

Land cost Cost of

tractor for

farming

Other

expenses

(TK)

Total cost

(TK) Ownership cost

1 0.24 own 500 500

0.24 own 500 500

2 0.34 own 500 500

0.22 lease 1500 500 2000

3 0.30 lease 2250 500 2750

0.30 lease 2250 500 2750

4 0.40 own 500 500

0.20 own 250 250

5 0.30 own 750 750

0.30 own 750 750

Total 2.84 6000 5250 11250

Source: Field Survey, 21 April 2016, Comilla District

At the very first of cultivation, farmers have to prepare their land to make it favorable. The main

costs of preparing land are land cost and tractor cost for farming. We found that the total farm

size of our respondents is 2.84 acres. Their total cost for preparing land is tk. 11250 whether

rental cost of land is maximum six thousands taka.

Table 2: Cost of land and land preparation for one acre farm’s land

Farm size(Acre) Land cost Cost of tractor Total cost

01 2113 1848 3961

Percentage 53.35% 46.65% 100%

Chart 1: Cost of land and land preparation for one acre farm’s land

From table 2. And chart 1 we found that cost of land and land preparation for one acre farm’s

land is tk. 3961 whether land cost is maximum 53.35% (tk. 2113) and cost of tractor is 46.65%

(tk. 1848).

5.2 Cost of preparing nursery: Nursery is a prepared area where seeds are sown or into which transplants or cuttings are put.

Nursery bed classified into seeding beds and transplant beds. The main cost in preparing nursery

is seed cost. The market price of seed varies from place to place, and depends mainly on quality

of seeds.

Table 3: Cost of preparing nursery for our respondent’s farm

Respondents Farm

size

(Acre

)

Seed cost Labor cost

for

preparing

nursery

Labor cost for

lifting seedling

Purchasi

ng

seedlings

Other

expense

s

Total

cost

Quantity

(kg)

price No.

of

labor

Tk. No.

of

labor

Tk.

1 0.24 10 360 01 400 02 800 120 1680

0.24

2 0.34 10 360 01 400 02 800 40 1600

0.22

3 0.30 10 360 01 400 02 800 40 1600

0.30

4 0.40 10 360 01 400 01 400 1160

0.20

5 0.30 7 1750 02 600 01 300 22 2672

0.30

Total 2.84 3190 2200 3100 222 8712

Source: Field Survey, 21 April 2016, Comilla District.

53.35 46.65

Cost of land and land preparation for one acre farm’s land

Land cost

Cost of tractor

From our respondents we found that 57 kg. Seeds are needed for 2.84 acres land to cultivate

which cost is tk. 3190. The quantity of seed depends on seed quality and market price of seed is

differing from place to place. And labor cost for preparing nursery is tk.2200, labor cost for

lifting seeding is tk.3100, other expense is tk.222 for 2.84 acres land.

Table 4: Cost of preparing nursery for one acre farm’s land

Farm size

(Acre)

Seed cost Labor cost

for

preparing

nursery

Labor cost

for lifting

seedling

Other

expenses

Total cost

01 1123 775 1092 78 3068

Percentage 36.60% 25.26% 35.60% 2.54% 100%

Chart 2: Cost of preparing nursery for one acre farm’s land

From table 4 and chart 2 we found that cost of nursery for 1 acre is 3068 (100%). Whether the

seed cost is tk.1123(36.60%), labor cost for preparing nursery is tk.775 (25.26%), labor cost for

lifting seeding is tk.1092 (35.60%) and other expenses are tk.789(2.54%).

36.6

25.26

35.6

2.54

Cost of preparing nursery for one acre farm’s land Seed cost

Labor cost for preparingnursery

Labor cost for lifting seedling

Other expenses

5.3 Cost of Fertilizers and pesticide: Fertilizer any substance such as manure or a mixture of nitrates used to make more fertile.

Pesticides are substances ment for attracting seducing and then destroying any pest. They are a

class of biocide. The most common use of pesticide is as plant protection products.

Table 5: Quantity of Fertilizers and Pesticide for our respondent’s farm

Respondents Farm

size

(Acre)

Urea

(Kg)

TSP

(Kg)

MOP

(Kg)

Zinc

(Kg)

Gypsum(Kg) Organic

Fertilizer

(track)

Pesticide

(Kg)

1 0.24 18 19 11 0.5 0.5

0.24 18 19 11 0.5 0.5

2 0.34 26 25 15 01 01

0.22 15 17 10 0.5 0.5

3 0.30 20 22 13 0.5 .75

0.30 20 22 13 0.5 .75

4 0.40 29 31 16 01 01

0.20 15 16 9 0.5 0.5

5 0.30 30 15 7.5 0.75 1.5

0.30 27.5 15 7.5 0.75 01

Total 2.84 218.5 201 113 6.5 8

Source: Field Survey, 21 April 2016, Comilla District

From our survey questionnaire we found that, there are 218.5 kg urea, 201 kg TSP, 113 kg MOP,

6.5 truck organic fertilizer and 8 kg pesticide needed for 2.84 acres land

Table 6: Cost of Fertilizers and Pesticide for our respondent’s farm

Respon

dents

Farm

size(A

cre)

Urea(

TK)

TSP(

TK)

MOP

(TK)

Zin

c

TK

Gyp

sum

TK

Organic

Fertilizer

(TK)

Pesticide

(TK)

Labor

Cost

(TK

Othe

rs

Total

1 0.24 324 608 198 300 60 400 1890

0.24 324 608 198 300 60 400 1890

2 0.34 468 800 270 600 120 600 2858

0.22 270 544 180 300 60 200 1554

3 0.30 360 704 234 300 90 400 2088

0.30 360 704 234 300 90 400 2088

4 0.40 522 992 244 600 140 600 3098

0.20 330 512 162 300 70 200 1574

5 0.30 600 420 135 450 210 300 2115

0.30 550 420 135 450 123 300 1978

Total 2.84 4108 6312 1990 3900 1023 3800 21133

Source: Field Survey, 21 April 2016, Comilla District

In 2.84 acres of land total fertilizer cost is tk. 21133 where cost of urea is tk. 4104; cost of TSP is tk.

6312, cost of MOP is tk. 1990, cost of organic fertilizer is tk. 3900, cost of pesticide is tk. 1023, and labor

cost for spreading fertilizer is tk. 3800.

Table 7: Cost of Fertilizers and Pesticide for one acre farm’s land

Farm Size

(acre)

Urea TSP MOP Organic

Fertilizer

Pesticide Labor

Cost

Total

01 1446 2223 701 1373 360 1338 7441

Percentage 19.43% 29.88% 9.42% 18.45% 4.84% 17.98% 100%

Chart 3: Cost of Fertilizers and Pesticide for one acre farm’s land

From table 7 and chart 3 we see that maximum cost is covered by TSP (29.88%) whether cost of

urea is tk. 1446 (19.43%), MOP is tk. 701 (9.42%), organic fertilizer is tk. 1373 (18.45%), and

pesticide is tk. 360 (4.84%) and labor cost is tk. 1338 (17.98%) for one acre farm’s land.

5.4 Cost of Irrigation: Irrigation is the watering of land to make it ready for agriculture. Irrigation systems are often

complex combinations of canals, channels and hoses.

Table 8: Cost of Irrigation for our respondent’s farm

Respondents Farm size(Acre) Cost of Irrigation

1 0.24 960

0.24 960

2 0.34 1600

0.22 800

3 0.30 1200

0.30 1200

4 0.40 1600

0.20 800

5 0.30 1125

0.30 1125

Total 2.84 11370

Source: Field Survey, 21 April 2016, Comilla District

Our respondents ensure us they use electrical motor pump for irrigation. Total cost of irrigation

is tk. 11370 for 2.84 acres of farm’s land.

19.43

29.88

9.42

18.45

4.84 17.98

Cost of Fertilizers and Pesticide for one acre farm’s land

Urea

TSP

MOP

Organic Fertilizer

Pesticide

Labor Cost

Table 9: Cost of Irrigation for one acre farm’s land

Farm size(acre) Cost of Irrigation

01 4004

From table 9 we see that cost of irrigation is tk. 4004 for one acre farm’s land.

5.5 Cost of labor for planting, weeding, cutting rice and threshing rice: The cost of labor is the sum of all wages paid to all farmers as well as cost of daily labor who are

directly involved in cultivation.

Table 10: Cost of labor for planting, weeding, cutting rice and threshing rice for our

respondent’s farm

Respon

dents

Farm

size(A

cre)

planting weeding cutting rice threshing

rice

Othe

r

expe

nses

(TK)

Total

cost

(TK) No.

of

labo

r

TK No.

of

labor

TK No.

of

labor

TK No.

of

labo

r

TK

1 0.24 02 800 02 800 02 800 02 800 100 3300

0.24 02 800 02 800 02 800 02 800 100 3300

2 0.34 04 1600 04 1600 02 1000 03 1500 300 6000

0.22 02 800 02 800 02 1000 02 1000 200 3800

3 0.30 03 1200 03 1200 03 1500 03 1500 5400

0.30 03 1200 03 1200 03 1500 03 1500 5400

4 0.40 04 1600 04 1600 04 2000 04 2000 7200

0.20 02 800 02 800 02 1000 02 1000 3600

5 0.30 04 1400 03 1200 05 2500 02 1000 200 6300

0.30 03 1050 03 1200 03 1500 02 1000 300 5050

Total 2.84 11250 11200 13600 12100 1200 49350

Source: Field Survey, 21 April 2016, Comilla District

We found from our field survey that maximum labor cost needed for cutting rice (tk. 13600). On

the other hand cost of labor for planting is tk. 11250, weeding tk. 11200, threshing rice tk.

12100, and other expense is tk. 1200 in 2.84 acres of land.

Table 11: Cost of labor for planting, weeding, cutting rice and threshing rice for one acre

farm’s land

Farm size

(Acre)

Labor cost

for

planting

Labor cost

for

weeding

Labor cost

for cutting

rice

Labor cost

for

threshing

rice

Other

expenses

(TK)

Total cost

01 3961 3944 4789 4261 422 17377

Percentage 22.79% 22.70% 27.56% 24.52% 2.43% 100%

Chart 4: Cost of Labor in Different Period

From table 11 and chart 4, we see that in one acre land, maximum labor cost (27.56%) is needed

for cutting rice which monetary value is tk. 4789. Whether in one acre land labor cost for

planting is tk 3961 (22.79%), weeding is tk. 3944 (22.70%), Threshing is tk. 4261 (24.52%) and

other expense is tk. 422 (2.43%).

0

5

10

15

20

25

30

Cost of Labor in Different Period

22.79 22.7

27.56

24.52

2.43

Labor cost for planting

Labor cost for weeding

Labor cost for cutting rice

Labor cost for threshing rice

Other expenses

5.6 Total Cost of Production: Total cost describes the total economic cost of production and is made up of variable costs,

which vary according to the quantity of a good produced and includes inputs such as labor and

raw materials.

Table 12: Total Cost of Production for one acre farm’s land

Farm size

(Acre)

Cost of

Land and

Land

preparation

Cost of

preparing

nursery

Cost of

Fertilizers

and

pesticide

Cost of

Irrigation

Cost of

labor for

planting,

weeding,

cutting

rice and

threshing

rice

Total Cost

of

Production

01 3961 3068 7441 4004 17377 35851

Percentage 11.05% 8.56% 20.76% 11.16% 48.47% 100%

Chart 5: Cost of production at different period of Cultivation

In table 12 we summed up all cost of production that we found from previous analysis and

calculate total cost of production for one acre farm’s land, which is tk. 35851. In total cost

maximum cost is covered by labor for planting, weeding, cutting rice and threshing rice, which is

tk. 17377 (48.47%). Whether cost for land and land preparation in one acre farm’s land is tk.

3961 (11.05%), cost for preparing nursery is tk. 3068 (8.56%), cost for fertilizer and pesticide is

tk. 7441 (20.76%) and cost of irrigation for one acre farm’s land is 4004 (11.16%).

0 10 20 30 40 50

Cost of production at differentperiod of Cultivation

11.05

8.56

20.76

11.16

48.47

Cost of Labor in Different Period

Cost of Irrigation

Cost of Fertilizers and pesticide

Cost of preparing nursery

Cost of Land and Landpreparation

5.7 Revenue from Production: Revenue from production in our respondent’s farm consists of revenue from paddy and revenue

from straws. The selling price of paddy is varies from place to place.

Table 13: Revenue from Production for our respondent’s farm

Respondents Farm size

(Acre)

Paddy Straws &others

(TK)

Total revenue

(TK) Quantity

(mon)

Price

(tk)

1 0.24 13 6500 840 7340

0.24 14 7000 840 7840

2 0.34 18 9000 1400 10400

0.22 12 6000 600 6600

3 0.30 16 8000 1100 9100

0.30 16 8000 1100 9100

4 0.40 23 11500 1400 12900

0.20 11 5500 650 6150

5 0.30 20 10000 4000 14000

0.30 22 11000 4000 15000

Total 2.84 82500 15930 98430

Source: Field Survey, 21 April 2016, Comilla District

From our source we found that revenue from our respondent’s 2.84 acres land is total 98430, in

which tk. 82500 from paddy and tk. 15930 from straws.

Table 14: Revenue from Production for one acre farm’s land

Farm size (Acre) Revenue from Paddy Revenue from

Straws &others

Total revenue (TK)

01 29049 5609 34658

Percentage 83.82% 16.18% 100%

Chart 6: Revenue from different sector of production

From table 14 and chart 6 we found that revenue earned in one acre land is tk. 34658. In which

83.82% revenue comes from paddy and 16.18% comes from straws

5.8 Profit and loss Statement: The profit and loss statement is a name that is often used for what today is the income statement

of income, statement of operations or statement of earnings. The profit and loss statements

period of time could be a year, a year-to-date Period such as 9 months, 52 weeks, a quarter of

years, one month, 4 weeks etc.

Table 15: Profitability Statement for one acre farm’s land

Farm size

(Acre)

Total Revenue

from

Production

Total Cost of

Production

Profit/ loss

(Total revenue -

Total cost)

Statement

01 34658 35851 (-1193) Loss

Percentage of loss:

=3.33%

From table 15, we see that the total revenue in one acre farm’s land is tk. 34658, and total cost of

production in one acre land is tk. 35851.

We observe that loss is happened in cultivating boro rice in comilla district. The monetary value

of loss is tk. 1193 (3.33%) in one acre farm’s land.

0

20

40

60

80

100

Revenue from different sector ofproduction

83.82

16.18

Revenue from Paddy

Revenue from Straws &others

5.9 Findings: On the basis of our data analysis and field experience we can sum up our knowledge about the

study:

The price of seeds and fertilizers is high.

Cost of fertilizers and seeds are varying from place to place.

All cultivate land are not bring under proper irrigation.

Government irrigation rate is tk 1600 for 0.4 acres land but farmers have to pay tk 1800-

1900, that increases cost of production.

Most of the farmers don’t cultivate HYV boro rice because of low market demand and

low price of HYV boro rice.

Absence of proper marketing system.

Less price of paddy in market.

Farmer s has limited knowledge about modern agriculture tools.

The transportation as well as labor cost is high.

Village areas still lack in developed communication for boosting up export and import.

There is serious dearth of agricultural credit in villages so most of them depend on their

own capital.

CHAPTER 6: Conclusion and Recommendation From the conduction of the research, it has revealed various aspects of agricultural production

and practices in Comilla. Farmers stated that, high price of seeds and fertilizers are the dominant

problem at production level. But, it can be overcome through open market selling system instead

of dealership. In this regard, government should come forward to conduct open market selling of

the seeds and fertilizers and providing sufficient information to the farmers which is related to

production. In comilla, farmer plays a major role in adopting and practicing new technology for

the improvement of production level. However, further development could be achieved, if

management skills of the program as well as of the skills of farmers can be ensured. Continuous

and increasing efforts of different agencies are also essential for the “sustainable agricultural

development”. Beside, government should conduct the extension program periodically for the

improvement of the agriculture and side by side, socio-economic condition of the farmers.

From the conduction of the research in comilla several recommendations can be prescribed for

the benefit of the Bangladeshi farmers.

These are:

Constant monitoring of supply, storage, price and quality of seed and fertilizers at

various levels should be ensured.

Stress should be given by the government on procurement and distribution of fertilizers

both at the private and the public sectors.

Steps to be taken to maintain a fertilizer buffer stock at the regional, district and Upazilla

level.

Government should facilitate for availability of quality fertilizers and seeds at end users

(farmers) level.

Open market sell of seeds and fertilizer as demanded by farmers could be extended.

Irrigation cost must be minimized.

The government will pioneer research and development of appropriate agricultural

machinery and equipment.

The government will encourage production and manufacturing of agriculture machinery

locally.

Periodical training program will be conducted for the better knowledge about the

modern agricultural tools.

Ensuring, agricultural subsidy to reduce the cost.

It should be needed to increase selling price of paddy.

Finally, both private and public sectors should be encouraged in improving agricultural

products through values addition activities.

Reference

1. Termpaper Warehouse (The Research Paper Factory), Available From:

http://www.termpaperwarehouse.com/essay-on/Measuring-The-Cost-Of-Production-

And/261150 [Accessed: 25th

April, 2016]

2. Agricultural Advisory Society, Available From: http://aas-bd.org/wp-

content/uploads/2014/05/A-study-on-hybrid-rice-in-BangladeshHistory-impact-and-

current-status-of-hybrid-rice-research-development-and-delivery-in-Bangladesh-2011.pdf

[Accessed: 25th

April, 2016]

3. ACADEMIA, Available From:

http://www.academia.edu/6689331/A_Case_Study_Agricultural_Production_in_Digoalg

one_Comilla_Bangladesh_[Accessed: 27th

April, 2016]

4. Bangladesh Journals Online, Available From:

http://www.banglajol.info/index.php/BJAR/article/view/5886[Accessed: 26th

April,

2016]

5. Agro and Farming (A Blog about Agriculture and Farming related NEWS, Reviews,

Technologies, Products, Crops, Tips, Thoughts, Stories and lots . . .) , Available From:

https://agricultureandfarming.wordpress.com/category/agriculture/ [Accessed: 27th

April,

2016]

6. DiscoveryBangladesh.com, Available From:

http://www.discoverybangladesh.com/meetbangladesh/agriculture.html[Accessed: 25th

April, 2016]

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31l10nlg84yn[Accessed: 25th

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APPENDICES

Appendix 1: Table given below shows the details about the participants of the study

SL. No. Name of the

Participants

Personal Information Land information

1 Ishakur Rahman Village: Mazigacha

Sub-District: Simpur

District: Comilla

Mobile:01911406496

Owned land: 2 acre

Rental land: 0 acre

Total land: 2 acre

Cultivated land: 1.2 acre

Surveyed land: 0.48 acre

2 Billal Hossain Village: Mazigacha

Sub-District: Simpur

District: Comilla

Mobile:01910149010

Owned land:0.56 acre

Rental land:0.22 acre

Total land:0.78 acre

Cultivated land:0.78 acre

Surveyed land:0.56 acre

3 Golam Sarwar Manik Village: Mazigacha

Sub-District: Simpur

District: Comilla

Mobile:01554320185

Owned land: 0 acre

Rental land: 0.9 acre

Total land: 0.9 acre

Cultivated land: 0.9 acre

Surveyed land: 0.6 acre

4 Shirin Akter Village: Mazigacha

Sub-District: Simpur

District: Comilla

Mobile:01749344189

Owned land:0.6 acre

Rental land:0 acre

Total land:0.6 acre

Cultivated land:0.6 acre

Surveyed land:0.6 acre

5 Md. Selim Miah Village: Gabtoli

Sub-District: SadarDokhin

District: Comilla

Mobile:01715679937

Owned land:0.6 acre

Rental land:0.6 acre

Total land:0.6 acre

Cultivated land:0.6 acre

Surveyed land:0.6 acre

Appendix 2: Survey Questionnaire

Appendix 3: Photographs

Note: Those are Photographs of fertilizers and some tools of cultivation

Note: Those are Photographs of rice, irrigation pump and our moments with farmers while

survey.