COST-BENEFIT ANALYSIS OF LITCHI PRODUCTION IN DINAJPUR DISTRICT, BANGLADESH
Authors: Disha Shaha, A.T.M. Rezaul Hoque, Md. Farhanul Islam, A N H Aronno, Mst. Nurain Islam and Shusmita Shirmin
Disha Shaha: Department of Economics, Hajee Mohammad Danesh Science and Technology University, Dinajpur, Bangladesh.
A.T.M. Rezaul Hoque: Department of Economics, Hajee Mohammad Danesh Science and Technology University, Dinajpur, Bangladesh.
Md. Farhanul Islam: Department of Economics, Hajee Mohammad Danesh Science and Technology University, Dinajpur, Bangladesh.
A N H Aronno: Faculty of Fine Arts, University of Development Alternative, Dhaka, Bangladesh.
Mst. Nurain Islam: Department of Anthropology, Jahangirnagar University, Savar, Dhaka, Bangladesh.
Shusmita Shirmin: Department of Economics, Hajee Mohammad Danesh Science and Technology University, Dinajpur, Bangladesh.
ABSTRACT
Litchi (Litchi chinensis Sonn.) is one of the widely cultivated and commercially important fruit crops of Bangladesh, and Dinajpur district is considered the main production hub of Litchi in Bangladesh due to having the most suitable soil and climate. Litchi farming, while being a very profitable enterprise, is constrained by several production and marketing challenges, and there is limited empirical evidence on its profitability dynamics at the local level. The returns to the region, input use, and constraints have often been disregarded in previous work on profitability; these studies are likely to have limited development policy/extension planning implications. This research was performed to determine the cost-benefit situation of litchi production at the Nawabganj Upazila of Dinajpur district in terms of its socio-economic aspects, profitability, and production constraints. Data were compiled from 83 respondents using Slovin’s Formula and simple random sampling. Descriptive statistic was used to describe the variables across the Cobb-Douglas production function to estimate the input-output relationship. Results indicate that litchi cultivation is profitable; on average, it generates BDT 132,146 of gross return per acre, providing a net return of BDT 55,423 and a cost-benefit ratio (BCR) of 1.72. Fertilizer, pesticide, and irrigation inputs were the most important positive contributors to production, whereas over-labor usage and intercultural practices were negative determinants of output. Farmers identified serious limiting factors, including a high incidence of pests, expensive inputs, bad weather, poor training facilities, storage facilities, and an unfavorable market structure dominated by middlemen. The results indicate the economic profitability of litchi cultivation in Dinajpur and some crucial institutional and infrastructural lacunae. Significant gains in profitability and sustainability can be made by improving the training of farmers, the quality of input supply, the storage and transport infrastructure, and giving access to a fair market. These findings can be used as region-based evidence for policymakers, extension services, and development organizations for formulating a strategy to develop litchi growers and encourage the rural economy of Bangladesh.
Keywords: Litchi production; Cost-benefit analysis; Profitability; Cobb–Douglas production function; Production constraints.