Profitability Analysis and Input Use Efficiency of Maize Cultivation in Selected Areas of Bangladesh

Abstract

Maize farmers in Bangladesh are unaware of the benefits of maize cultivation due to a lack of information and concept generation. The objectives of this study were to estimate the cost and return of maize cultivation; assess the input use efficiency of maize cultivation for marginal, small, and medium maize production to address the problems; and suggest policy recommendations. The study was conducted in six villages in the Chuadanga district in Bangladesh. Data were collected by using an interview schedule from the purposively selected 80 respondents during 1–30 June 2018. After analyzing the data, the total cost of production was Tk. 124,495, Tk. 134,335, and Tk. 140,579 for marginal, small, and medium maize production, respectively. Per hectare gross return was Tk. 213,997, Tk. 204,972, and Tk. 197,163, and per hectare gross margin was Tk. 120,478, Tk. 104,748, and Tk. 92,516. Net return was calculated by deducting the gross cost from the gross return, and these were Tk. 89,502, Tk. 70,637, and Tk. 56,584. The benefit–cost ratio was 1.72, 1.53, and 1.40 for marginal, small, and medium maize production, respectively. From Cobb–Douglas production function analysis, it was observed that the coefficients of land preparation cost, irrigation cost, urea, and MoP cost were significant at different levels of probability for marginal, small, and medium maize production, and the coefficients of human labor cost, seed and pesticide used was not significant while the coefficients of TSP was negative and significant. This study also identified some of the problems associated with maize production. The findings revealed that the high price of inputs was the most acute problem, followed by a lack of technical knowledge and shortage of human labor at the critical stage, and declining soil fertility was the last obstacle that stood in the way of maize production in the study area.