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
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http://www.banglajol.info/index.php/BJAR/article/view/5886[Accessed: 26th
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2016]
5. Agro and Farming (A Blog about Agriculture and Farming related NEWS, Reviews,
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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.