Productivity, profitability, efficiency, and land utilization scenarios of rice cultivation: An assessment of hybrid rice in Bangladesh

Abstract

The productivity gains attained from high-yielding varieties (HYV) of rice ( Oryzasativa L.) developed during the Green Revolution are no longer sufficient to feed the increasing populace. This has led to a greater focus on hybrid rice (developed by crossing two inbred varieties). However, the adoption of hybrid rice is stagnant in Bangladesh. This study assessed the current status of hybrid vis-à-vis HYV rice, the problems in the adoption of hybrid rice, and the potential of hybrid rice in increasing productivity and farmers’ income. The technical efficiency of rice cultivation and determinants of inefficiency were also investigated in addition to the development of various optimal land utilization scenarios. Primary data from 400 randomly selected farmers were collected in 2016 from four districts, Dinajpur, Sherpur, Gopalganj, and Noakhali, in Bangladesh. The analytical methods included the marginal benefit-cost ratio, stochastic production possibility frontier, and linear programming. The results showed that hybrid rice had higher productivity (20–25%) than HYV rice, while the marginal benefit-cost ratios were higher than one (3.65–5.34) across all the sampled districts. The area under hybrid rice decreased and the growth rate was negative (–2.52%) during the study period due to the rising price of seed and insect infestation. Based on land utilization scenarios, the optimal land utilization would require reallocation of 8–52% rice area in favor of hybrid rice across the sampled districts. The efficiency analysis showed the mean technical efficiency of 76%, which indicated the presence of technical inefficiency in rice production, significantly affecting the outputs. Farmer's education and extension service access were the main avenues for reducing inefficiency. As hybrid rice has higher productivity and profitability, hybrid seeds provide opportunities for enhancing rice production in Bangladesh. Yet, this can only be achieved by developing and disseminating affordable hybrid seeds with insect pest resistance and improved palatability of grain. The concerned government departments should also provide better access to extension services to reduce production inefficiencies.