Competitiveness, Profitability, Input Demand and Output Supply of Maize Production in Bangladesh

Abstract

The study assesses international competitiveness, profitability, output supply and input demand of maize production using a farm survey data of 165 farmers from two major maize growing areas (i.e., Dinajpur and Lalmonirhat districts) of northwestern Bangladesh. Results revealed that maize production is globally competitive and, therefore, can successfully substitute its import. Maize production is also profitable at the farm level (Benefit Cost Ratio = 1.21) with no adverse influence of farm size on yield and profitability. Maize farmers are also responsive to changes in market prices of inputs and outputs. A 1% increase in maize price will increase output supply by 0.4%. The most dominant driver of maize supply and other input demands is land. A 1% increase in available land will increase maize supply by a substantial 3.9%. In addition, landless laborers will benefit through an increase in hired labor demand when land area increases. Policy implications include investments in R&D, tenurial reform to consolidate land holding and smooth functioning of the hired labor market in order to increase maize production and profitability in Bangladesh.