Abstract:
The objectives of this study were to assess the profitability of rice cultivation under the current
cultivation practices through the determination of cost and return in Southern Bhutan. Using the
multi-stage random sampling method, 300 farmers were included in the sample. The main tool
used for data collection was a pre-tested semi-structured questionnaire. Budgeting techniques
and descriptive statistics were used for analyzing the data. The study reveals that gross return
was Nu. 52500 (?USD 740) acre
-1
of rice cultivation from the investment of Nu. 52434 (?USD
738.5). Thus, the gross margin was Nu. 1066 ($USD 15) which is equivalent to 2.1% of the total
overall cost. The analysis shows that a benefit-cost ratio of 1.021 with break-even price and yield
at Nu. 69 (?USD 0.97) Kg-1
and 735 Kg milled rice respectively. Rice farming was found labour
intensive and it accounts for 77% of the total cost whereas that of other costs constitutes only
13%. Sensitivity analysis on the benefit-cost ratio shows that rice production is more sensitive to
change in productivity and labor requirements than subsidy. Despite low productivity, soil
fertility and crop management were found poor in southern Bhutan. Thus, the study recommends
technical intervention such as farm mechanization and exploration of labor-saving technologies,
adoption of high-yielding improved varieties, soil, and crop management. On the flip side,
pertinent policy interventions like subsidies, compensation, and incentives are also important to
make rice farming profitable. |
