FINANCIAL AND ECONOMIC PROFITABILITY OF SELECTED SPICES CROPS IN BANGLADESH

Financial and economic profitability of selected spices crops…

Abstract

The study was undertaken to estimate the financial and economic returns and competitiveness of selected spices crops in Bangladesh. A total of 1620 spices growers from nine upazilas of three districts were randomly selected for the study. Domestic resource cost (DRC) was estimated for evaluating the comparative advantage of selected spices crops. The study revealed that the gross margins of producing selected spices crops were positive. However, highest gross margin was estimated for garlic (Tk 229568/ha) followed by green chilli (Tk 212002/ha) and onion (Tk.188389/ha). Comparatively low net return was calculated for onion (Tk 130179/ha) than other two spices crops. The highest benefit cost ratio was found for green chilli (1.83) followed by onion (1.74) and garlic (1.71). The estimates of DRC showed that Bangladesh had comparative advantage in onion and garlic production as these estimates were less than one implied that the production of onion and garlic would be highly efficient for import substitution. Again, DRC for green chilli was also less than unity implied that the production of green chilli would be efficient for export promotion. Responded farmers mentioned that low market price at harvesting time and market syndicate were the major constraints to spices production. The constraints include fertilizer not working properly due to adulterations, crisis of labour at harvesting time and high wage rate in the study areas. Government should take initiatives for ensuring reasonable price at harvesting time. Mechanization should be introduced to the farmers’ field for minimizing the labour crisis.