American Journal of Environmental and Resource Economics

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Economic Viability of Wet Season Aromatic and Non-aromatic Rice Cultivation in Dinajpur District of Bangladesh

Received: 20 August 2020    Accepted: 03 September 2020    Published: 16 September 2020
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Abstract

The aromatic rice has cultural and economic significance in Bangladesh. This study assessed the relative economic viability (profitability and risk) of aromatic and non-aromatic wet season (WS) rice varieties. The farm-level data for this study was collected through face to face interview from Dinajpur. An enterprise, partial and stochastic budget was developed in the study. Nearly half of the total T. Aman area in the case study villages was devoted to aromatic rice, in particular modern aromatic cultivar BRRI dhan34, mainly due to it gave notable extra benefits over local aromatic (BDT. 13,519/ha) and non-aromatic (BDT. 20,197/ha) cultivars. There was no significant difference in yield between BRRI dhan34 and local aromatic variety, namely Kataribhog. However, BRRI dhan34 was found to be the more economically viable (gave higher returns and posed less risks) option due to its higher and stable market price. The higher price, guaranteed market demand, lower fertilizer requirements, shorter growth duration and suitability of late transplanting of BRRI dhan34 are the major drivers behind its widespread popularity in the region. It was clear from this research that farmers in the case study villages are highly motivated to increase adoption of the aromatic cultivar due to its price advantage and ensured market. Therefore, the development and dissemination of the higher yield potential biotic stress tolerant aromatic variety should get priority in policy planning for higher income generation and export earnings for the country.

DOI 10.11648/j.ajere.20200503.14
Published in American Journal of Environmental and Resource Economics (Volume 5, Issue 3, September 2020)
Page(s) 71-79
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Aromatic Cultivars, Partial Budget, Economic Sustainability, Profitability, Risks

References
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[4] BRRI (2019). Annual Report 2017, Bangladesh Rice Research Institute (BRRI), Gazipur, Bangladesh.
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[8] Harper W. M (1977). Statistics Book, Macdonald and Bungay, Evans, Suffolk, USA.
[9] Herdt, R. W. (1978). Costs and Returns for Rice Production Economic Consequences of the New Rice Technology (pp. 63). International Rice Research Institute (IRRI), Los Banos, Philippines.
[10] Islam, M. (2002) “Determinants of Production and Demand for Rice in Bangladesh: Comparative Study of Aromatic and Coarse varieties”, PhD thesis, Submitted to the Faculty of Agricultural Economics and Rural Sociology, Bangladesh Agricultural University, Mymensingh, Bangladesh.
[11] Kabir, J., Cramb, R., Alauddin, M., Gaydon, D. S. and Roth, C. H. (2020). Farmers’ perceptions and management of risk in rice/shrimp farming systems in South-West Coastal Bangladesh. Land Use Policy, 95, p. 104577.
[12] Kabir, M. J. (2016). The Sustainability of Rice-Based Cropping Systems in Coastal Bangladesh: Bio-Economic Analysis of Current and Future Climate Scenarios. PhD thesis, Submitted to Graduate School, The University of Queensland, Australia.
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[16] Kabir, M. J., Cramb, R., Gaydon, D. S., and Roth, C. H. (2017b). Bio-economic evaluation of cropping systems for saline coastal Bangladesh: II. Economic viability in historical and future environments. Agricultural Systems, 155, 103-115.
[17] Kabir, M. J., Cramb, R., Gaydon, D. S., and Roth, C. H. (2018). Bio-economic evaluation of cropping systems for saline coastal Bangladesh: III Benefits of adaptation in current and future environments. Agricultural Systems, 161, 28-41.
[18] McConnell, D. J., & Dillon, J. L. (1997). Farm Management for Asia: a Systems Approach. Rome, Italy: Food and Agriculture Organization of the United Nations (FAO).
[19] Murshid, K. A. S., Islam, M. N., Shahabudddin, Q., Akter, M. Y. S. and Chowdhury, O. H. (2008). Determination of Food Availability and Consumption Pattern and Setting Up of Nutritional Standard in Bangladesh, Bangladesh Institute of Development Studies, Maxwell Stamp in collaboration with Food Planning and Monitoring Unit (FPMU) Ministry of Food and Disaster management & National Food Policy Capacity Strengthening Programme (NFPCSP) and FAO.
[20] Salam, M. A., J. Furuya, and S. Kobayashi (2016a). Climate Effect on Supply and Market Price Stability of Rice in Bangladesh: Assessment of Climate and Socioeconomic Scenarios, Japanese Journal of Agriculture Economics (JJAE) 19: 60–65.
[21] Nasrin J. and Uddin M. T. (2013). Financial profitability of aromatic rice production and its impact on farmers’ livelihood in selected areas of Tangail District. Bangladesh Journal of Political Economy, 29 (1), pp. 45-59.
[22] Tama, R. A. Z., Ismat Ara Begum, I. A., Alam, M. J. and, and Islam, S. (2015). Financial Profitability of Aromatic Rice Production in Some Selected Areas of Bangladesh, International Journal of Innovation and Applied Studies Vol. 12 (1): 235-242.
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Author Information
  • Agricultural Economics Division, Bangladesh Rice Research Institute, Gazipur, Bangladesh

  • Agricultural Economics Division, Bangladesh Rice Research Institute, Gazipur, Bangladesh

  • Department of Environmental Science and Management, North South University, Dhaka, Bangladesh

  • Agricultural Economics Division, Bangladesh Rice Research Institute, Gazipur, Bangladesh

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    Mohammad Jahangir Kabir, Md Abdus Salam, Alvira Farheen Ria, Aabu Bakr Siddique. (2020). Economic Viability of Wet Season Aromatic and Non-aromatic Rice Cultivation in Dinajpur District of Bangladesh. American Journal of Environmental and Resource Economics, 5(3), 71-79. https://doi.org/10.11648/j.ajere.20200503.14

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    ACS Style

    Mohammad Jahangir Kabir; Md Abdus Salam; Alvira Farheen Ria; Aabu Bakr Siddique. Economic Viability of Wet Season Aromatic and Non-aromatic Rice Cultivation in Dinajpur District of Bangladesh. Am. J. Environ. Resour. Econ. 2020, 5(3), 71-79. doi: 10.11648/j.ajere.20200503.14

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    AMA Style

    Mohammad Jahangir Kabir, Md Abdus Salam, Alvira Farheen Ria, Aabu Bakr Siddique. Economic Viability of Wet Season Aromatic and Non-aromatic Rice Cultivation in Dinajpur District of Bangladesh. Am J Environ Resour Econ. 2020;5(3):71-79. doi: 10.11648/j.ajere.20200503.14

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  • @article{10.11648/j.ajere.20200503.14,
      author = {Mohammad Jahangir Kabir and Md Abdus Salam and Alvira Farheen Ria and Aabu Bakr Siddique},
      title = {Economic Viability of Wet Season Aromatic and Non-aromatic Rice Cultivation in Dinajpur District of Bangladesh},
      journal = {American Journal of Environmental and Resource Economics},
      volume = {5},
      number = {3},
      pages = {71-79},
      doi = {10.11648/j.ajere.20200503.14},
      url = {https://doi.org/10.11648/j.ajere.20200503.14},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ajere.20200503.14},
      abstract = {The aromatic rice has cultural and economic significance in Bangladesh. This study assessed the relative economic viability (profitability and risk) of aromatic and non-aromatic wet season (WS) rice varieties. The farm-level data for this study was collected through face to face interview from Dinajpur. An enterprise, partial and stochastic budget was developed in the study. Nearly half of the total T. Aman area in the case study villages was devoted to aromatic rice, in particular modern aromatic cultivar BRRI dhan34, mainly due to it gave notable extra benefits over local aromatic (BDT. 13,519/ha) and non-aromatic (BDT. 20,197/ha) cultivars. There was no significant difference in yield between BRRI dhan34 and local aromatic variety, namely Kataribhog. However, BRRI dhan34 was found to be the more economically viable (gave higher returns and posed less risks) option due to its higher and stable market price. The higher price, guaranteed market demand, lower fertilizer requirements, shorter growth duration and suitability of late transplanting of BRRI dhan34 are the major drivers behind its widespread popularity in the region. It was clear from this research that farmers in the case study villages are highly motivated to increase adoption of the aromatic cultivar due to its price advantage and ensured market. Therefore, the development and dissemination of the higher yield potential biotic stress tolerant aromatic variety should get priority in policy planning for higher income generation and export earnings for the country.},
     year = {2020}
    }
    

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  • TY  - JOUR
    T1  - Economic Viability of Wet Season Aromatic and Non-aromatic Rice Cultivation in Dinajpur District of Bangladesh
    AU  - Mohammad Jahangir Kabir
    AU  - Md Abdus Salam
    AU  - Alvira Farheen Ria
    AU  - Aabu Bakr Siddique
    Y1  - 2020/09/16
    PY  - 2020
    N1  - https://doi.org/10.11648/j.ajere.20200503.14
    DO  - 10.11648/j.ajere.20200503.14
    T2  - American Journal of Environmental and Resource Economics
    JF  - American Journal of Environmental and Resource Economics
    JO  - American Journal of Environmental and Resource Economics
    SP  - 71
    EP  - 79
    PB  - Science Publishing Group
    SN  - 2578-787X
    UR  - https://doi.org/10.11648/j.ajere.20200503.14
    AB  - The aromatic rice has cultural and economic significance in Bangladesh. This study assessed the relative economic viability (profitability and risk) of aromatic and non-aromatic wet season (WS) rice varieties. The farm-level data for this study was collected through face to face interview from Dinajpur. An enterprise, partial and stochastic budget was developed in the study. Nearly half of the total T. Aman area in the case study villages was devoted to aromatic rice, in particular modern aromatic cultivar BRRI dhan34, mainly due to it gave notable extra benefits over local aromatic (BDT. 13,519/ha) and non-aromatic (BDT. 20,197/ha) cultivars. There was no significant difference in yield between BRRI dhan34 and local aromatic variety, namely Kataribhog. However, BRRI dhan34 was found to be the more economically viable (gave higher returns and posed less risks) option due to its higher and stable market price. The higher price, guaranteed market demand, lower fertilizer requirements, shorter growth duration and suitability of late transplanting of BRRI dhan34 are the major drivers behind its widespread popularity in the region. It was clear from this research that farmers in the case study villages are highly motivated to increase adoption of the aromatic cultivar due to its price advantage and ensured market. Therefore, the development and dissemination of the higher yield potential biotic stress tolerant aromatic variety should get priority in policy planning for higher income generation and export earnings for the country.
    VL  - 5
    IS  - 3
    ER  - 

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