Agriculture in Bangladesh

Measuring the Production Cost and Returns of HYV Boro Rice Farmers
Term Paper on:

Measuring the Cost of Production and Returns of HYV Boro
Rice Farmers
A study in Comilla District
P REPARED F OR
D R . S HAIKH M OKSADUR R AHMAN

A S SO C I ATE P R O FE SSOR
D EPARTM E N T O F M ANA GE ME NT S T UDIE S
C O M I LLA U NIV E R S IT Y
COMILLA UNIVERSITY
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Term Paper on:

Measuring the Cost of Production and Returns of HYV Boro
Rice Farmers
A study in Comilla District
P REPARED F OR :
D R . S HAIKH M OKSADUR R AHMAN
A SSOCIATE P ROFESSOR
D EPARTMENT OF M ANAGEMENT S TUDIES
C OMILLA U NIVERSITY
P REPARED B Y :
SL No
Name of The Students
Roll No
01.
Selim Mahmud
1008009
02.
Forhad Miah
1008020
03.
Md. Robiul Hasan
1008032
04.
Md. Easir Arafat
1008042
05.
Mohammed Rafiqul Islam
1008053
Course Title: Cost Accounting

Date of Submission: 15th February, 2015
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Executive Summary
Being an agricultural country Bangladesh is one of the smallest countries of
the world. As the population of the country is about 16 crores, so food security is
a burning question for her. Agriculture has a great contribution to the Gross
Domestic Product (GDP) of the country. When, industrialization starts happening
the activities of the population at arts diversification towards different sectors. As
a result, the contribution of the agriculture sector is slowly reducing and now
reached 19% share of GDP. Still agriculture plays vital role and is known as the
most important sector of the economy. Its an empirical survey that has been
conducted to examine the differences in input use, costs and returns of the HYV
Boro rice farmers. We took five farmers as a sample from Salmanpur village and
Cangini village under Sadar Dakshin of Comilla district. The major findings of our
survey are that the ownership of the land is a major factor influencing the
profitability of a farmer. The technical knowhow of the farmer regarding the use
of fertilizer & pesticides also affect the production of paddy and profit as well.
Though our survey shows that positive returns are occurred as a profit but this
amount of profit is very little to their efforts. Therefore, this survey reveals that
credit could be judged as a vital player to increase higher yield through
utilization of necessary production inputs.
We also can say that, to solve the remaining difficulties on the path of the
development of agriculture we and govt. along together should take necessary
steps to make it too much established sector of our economy.
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Scope of the Study:

Agriculture is a prominent and main sector of our economy. Our
country greatly depends on this sector for its verities supply within the
whole year. Boro rice is an important part to ensure the fulfillment of food
demand of our country. Our study is based on measuring the production
cost and returns of HYV boro rice farmers. Through preparing this termpaper, we have an experience to visit in the field which had not before. Its
our pleasure to get opportunity to make such a fantastic term-paper. This
term paper has been prepared through extensive discussion with farmers.
While preparing this term-paper, we had a great opportunity to have an in
depth knowledge on the types of rice, cultivation method, using amount of
fertilizers, irrigation method and mainly knowing about the input and
output of the HYV boro rice farmers.
Objectives of the study:

Specific Objective:
To measure the cost of production and returns of HYV Boro Rice
farmers.
Other Objectives:
To know about the condition of total agricultural sector of our country
especially about the Comilla District.
To study the interrelationship between input and output of Boro rice
production
To know the cost of production during cultivation, harvesting and
selling period.
To investigate the utilization of credit according to loan size.
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Methodology of the study
This survey has been conducted on the basis of Primary & secondary
data. To some extent primary data were used.
Primary data: Primary data were collected by conducting and indepth personal interview. Observation technique also has been used
in case of need. However the data used in this study has been further
analyzed and processed for the purpose of the study.
Secondary data: Secondary data were used and these were

collected from relevant journals, magazines, newspapers etc. and also
publication of the sector of Bangladesh along with others. We collect
information based on the research paper of different scholar.
Limitations of the Study
We
have worked to prepare the term-paper more accurately; we

think that our term-paper carries some limitations. Therefore, the
following problems are found that may be termed as the
limitations/shortcomings of this study. The main limitations encountered
in producing this term-paper are as follows:
As our respondents are farmer they have lacking in knowledge. They
cant answer the question in a proper way.
In the time of field survey, we noticed that some farmers are not
willing enough to provide their personal information as like contact no.
and the accurate information regarding our study on account of their
mistrust and fear.
Up to date information is not available.
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Shortage of time was another limitation to prepare this paper.
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Overview of Agriculture of Bangladesh at a Glance:
Total family
2,86,95,763
Total farm holding

Total area
Forest
Cultivable land
Cultivable waste
Current fellow
Cropping intensity
Single cropped area
Double cropped area
Triple cropped area
Net cropped area
Total cropped area
Contribution of agriculture sector
to GDP
Contribution of crop sector to
GDP
Manpower in agriculture(% of
Total manpower)
Total food crop production
Expected Rice Supply
1,51,83,183
14.86 million hectare
191%
19.29%
13.44%
47.5%
37.266 million metric ton
Rice supply in 2015 is
expected to be in the
range of 31.2 to 35.2
million tons, and it is
likely to grow to 39
million tons by 2030.
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Projected Rice Demand
The total direct demand

for
rice
in
2030
is
projected to be in the
range of 31.3 to 42.0
million tons, up from 26.8
to 29.2 million tons in
2015.
Table-1: Agriculture of Bangladesh at a Glance
Agriculture of Bangladesh
Agriculture
is the backbone of the economy of Bangladesh. Even in

the era of industrialization, the livelihood of Bangladesh is dependent on
agriculture. However, compared to international agriculture, Bangladesh is
underdeveloped in many sectors. Though we are agrarian country and rice
is our staple food, the production of rice is still much lower than other
countries like Vietnam, USA, China, Japan etc. Considering international
perspectives, the agricultural scientists of Bangladesh is now thinking as
competitive manners. Once upon a time 75 per cent of jute was produced
in Bangladesh. But due to increasing demand of rice, farmers reduced jute
production compared to rice. However, jute is still playing important role in
national economy. Every year Bangladesh earns a remarkable amount of
foreign currency by exporting jute and jute-based products. Crops, poultry,
fisheries, livestock, forestry etc. are the great important part of our
agriculture. Those are discussed below in brief-
Crops of Bangladesh:
The crops of our country are generally categorized into two types. These
are stated into the following figure-
Food Crops
Rice
Cash Crops
Jute
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Wheat
Pulses
Potato
Sweet potato
Oilseeds
Spices
Fruits
Table-2: Crops of Bangladesh.
Tea
Tobacco
Cotton
Sugar cane
Betel nut
Silk
Rubber
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Recent Achievement in Agriculture Production (million Metric

Tons):
Table3: Recent Achievement in Agriculture Production
Poultry Industry of Bangladesh:

Poultry is considered as an important source of animal protein all over the
world. In Bangladesh, poultry contributes a major share of animal protein
simply because of the limitations and religious taboos in case of pork and
beef. Bangladesh is a country the people of which consume the lowest
percentage of protein than the minimum requirements because of
inadequate supply of protein-generating food products. Poultry meat and
egg can effectively fulfill the shortage of protein requirement, since it can
be produced at the least cost, lowest time and efforts than the other
protein producing animals.
Commercial poultry industry is growing rapidly in Bangladesh. Estimate
shows that poultry population is increasing at the rate of 6.5% per year in
the country. There are over 116.5 million chickens and 13.47 million ducks
in Bangladesh. This poultry sector is growing may be because the fish
population is declining and people are switching to poultry as a source of
animal protein. According to a 2006 census completed by the Department
of Livestock Services (DLS) and the Poultry Sector Development Project
(PSDP), there are approximately 38000 commercial poultry farms housing
124,10,000 layers and 107,84,5000 broilers in Bangladesh (Jarjour, 2006).
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These poultry farms are producing approximately 10474 tons (I.e., 1063
million tons year) of excreta every day in the country. In Bangladesh we
naturally see four categories of poultry production procedure exist in
villages, towns or cities. These are
Traditional rural backyard scavenging

Semi-scavenging,
Commercial farming system
Contract/ integrated farming system.
Livestock Sector in Bangladesh:

In agricultural economy, production management, employment of huge
people, poverty reduction and animal protein supply, livestock sector plays
very crucial role. But expected development of this sector is not occurred
because government did not give appropriate priority to this sector. Now
the production of this sector among the total production of the country is
only 3%. Contribution of this sector in the total production of the country
decreasing day after day which is not expected because the foods
produced by this sector has a great demand in this country and this
industry has a lot of prospect. Cattle population in Bangladesh is about
24.13 million. In the rural area, cattle are kept mainly for draught purpose.
Only a limited number of farmers have cow for milk production. Maximum
cattle are no descriptive type, which do not belong to any specific breed
and termed as indigenous cattle. These animals are kept mainly in the stall
with limited grazing on the roadside; embankment slope, fallow land and
paddy straw are their staple food. Husbandry practices and health care of
these animals are poor. The average milk production of local cows is very
low and it varies between 300 to 400 liters per lactation period of 180 to
240 days. Such low productivity of indigenous cows is an important
constraint for future development of the livestock sector. High productive
exotic breeds and their crosses normally do not have adequate resistance
against the prevalent diseases Bangladesh suffers from an acute shortage
of livestock products like milk, meat and eggs. The domestic demand for
milk has been rising faster than the domestic production of milk. Hence
Bangladesh Government has given the priority on the development of
dairying at farmers level to increase the supply of milk from small dairy
farms.
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Fisheries and Aquaculture in Bangladesh:

Fish is the second most valuable agricultural crop in Bangladesh and its
production contributes to the livelihoods and employment of millions of
people. The culture and consumption of fish therefore has important
implications for national income and food security. Bangladeshi people are
popularly referred to as Mache Bhate Bangali or fish and rice makes a
Bengali.
The fisheries sector in Bangladesh is broadly divided into four sub-sectorsinland capture, inland culture, mari-culture (artisanal fisheries) and marine
industrial fisheries. Bangladesh is one of the worlds leading inland
fisheries producers and has a huge water resource all over the country in
the form of small ponds, ditches, lakes, canals, small and large rivers, and
estuaries covering about 4.34 million hectares. Freshwater aquaculture
involves pond aquaculture especially the polyculture of native.
and exotic species. The country also has a coastal area of 2.30 million ha
and a coastline of 714 km along the Bay of Bengal, which supports a large
artisanal and coastal fisheries. Bangladesh is considered one of the most
suitable countries in the world for farming of freshwater prawn.
Bangladesh has some 130 deep-sea fishing trawlers, 22000 mechanized
fishing boats, and 25000 non mechanized fishing boats. Currently there are
133 fish processing plants in Bangladesh which are mostly located in port
cities(Khulna and Chittagong) of which 74 processing plants are EU
approved. Though the country is endowed with enormous fishery resources
which are vital to the livelihood of millions of people and national food and
nutrition security, the sector is facing major constraints including climate
change, poor fisheries infrastructure, resource mismanagement, water and
environmental population, natural disasters such as recurrent flood and
cyclones, and lack of knowledge among farmers.
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Forestry in Bangladesh:
Wood is the main fuel for cooking and other domestic requirements. It is
not surprising that population pressure has had an adverse effect on the
indigenous forests. By 1980 only about 16 percent of the land was
forested, and forests had all but disappeared from the densely populated
and intensively cultivated deltaic plain. Aid organizations in the mid-1980s
began looking into the possibility of stimulating small-scale forestry to
restore a resource for which there was no affordable substitute.
The largest areas of forest are in the Chittagong Hills and the Sundarbans.
The evergreen and deciduous forests of the Chittagong Hills cover more
than 4,600 square kilometres (1,800 sq mi) and are the source of teak for
heavy construction and boat building, as well as other forest products.
Domesticated elephants are still used to haul logs. The Sundarbans, a tidal
mangrove forest covering nearly 6,000 square kilometres (2,300 sq mi)
along the Bay of Bengal, is the source of timber used for a variety of
purposes, including pulp for the domestic paper industry, poles for electric
power distribution, and leaves for thatching for dwellings. The total forest
area of Bangladesh are given below-
Table-4:
Forest Area in Bangladesh.
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Agricultural Based Research Centers/Institutes in

Bangladesh:
There are various research institutes and centers in Bangladesh which are
based on agriculture. These are stated in the following figure:
Name
Location
Established
Year
Bangladesh
Agricultural
Research Institute
(BARI)
Joydebpur, Gazipur
1976
Bangladesh Rice
Research
Institute(BRRI)
Joydebpur, Gazipur
1970
Bangladesh Forest
Research Institute
(BFRI)
Sholashahar,
Chittagong
1955
Bangladesh
Institute of
Nuclear
Agriculture (BINA)
Mymensingh
1961
Bagladesh Jute
Research Institute
(BJRI)
Manik Mia Avenue,

Dhaka
1974
Bangladesh Tea
Sylhet
1973
Research Institute
(BTRI)
Table-5: Agricultural Based Research Centers/Institutes in Bangladesh
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Characteristics of Agriculture in Bangladesh

A. Primitive type of cultivation: the cultivators are still using almost all
the age-old appliances like ploughs, yokes, harrows, weak bulls etc for
cultivation of their land which were used during the ancient time. The
development countries brought revolutionary changes in agriculture by
using modern and scientific equipment and others inputs like tractors,
pesticides, fertilizer etc.
B. Diminishing fertility of the soil: like all other elements, the soil has
also a definite limit of productivity capacity. It is therefore necessary to
raise the fertility of the land for increasing productive capacity by
applying manures suitable for environment and this can be done by
mixing soil. Since the Bangladeshi cultivators are inexperienced is the
regard.
C. Small holdings of land: Due to increased population, joint families
are gradually disappearing and this is responsible for making the large
holdings smaller. Cultivation in such smallholdings is not possible even
by wooden plough.
D.Landless cultivators: The rural poor people are day by day becoming
landless due to economic pressure .These landless people for their
subsistence cultivate lands of the village mahajans on crop sharing
basis .For want of ownership of land, they do not feel interested to
properly invest; even feel unwilling to render their physical labor on
this land. For this reason, good harvest is not possible.
E. Decreasing per capital cultivable land: Cultivable land is being
gradually reduced for distribution limited land among the increasing
population of the country. It is learnt from the meeting of the
parliamentary committee of the Ministry of Agriculture held in
September, 2003.
F. Cultivation for livelihood: Most of the farmers of Bangladesh
produce crops for livelihood only; they had little interest for crops
production on commercial basis. The commercial attitude for
production of crops has not yet been popular.
G.Dependence on nature: Agriculture in Bangladesh depends on
nature. Agricultural crops production is seriously hampered every year
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by the vagaries of nature. There is a common word that agriculture in

Bangladesh is a gamble in the monsoons. As a result crop production
varies considerably.
H.Fallow land: Vast land of the eastern region especially in the districts
of Mymensingh , Netrokona, Kishorganj, Sylhet, Sunamganj etc. is still
lying fallow and as such we are getting no yield from those lands.
I. Uneven land: Natural composition of the land of eastern 3 zone like
Mymensingh, sylhet, Chitttagong and Dhaka is slightly uneven and for
this reason most of this land cannot be brought under irrigation
facilities. The uneven land also cannot hold water therefore, per acre
yield of such lands is less than that of plain ones.
J. Lack of marketing of agricultural produce: Agricultural product
needs extension marketing programs. It has not yet been possible to
take extensive measures for making agriculture an industry in villages.
Role of Agriculture in the Economy of Bangladesh

Bangladesh is a developing country. Agriculture plays an important role in
the economic development of the country. External debt alone cannot
ensure full development and therefore, we have to depend more on our
own local resources. Extensive development of agriculture can easily
provide necessary fund for the national upliftment. Various roles of
agriculture in the economy of Bangladesh are discussed below.
i.
Raw materials: Agriculture also supplies raw materials for industry. The
country needs be agriculturally developed before it is to be developed
industrially.
ii.
Food: Necessary food for our increasing population comes from

agriculture. If production is not widely increased, famine may appear
and if famine is met by importing food from outside the country,
development activities of the nation may jeopardize.
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iii.
Government Income: Government income is intimately connected with

the development of agriculture. Government treasury becomes rich with
the increased production of the country and tax including the arrear one
can also be easily collected from the people.
iv.
Increasing Export & Import: The volume of export and import trade
increases with the increase of production. Transport and communication
facilities also increased.
v.
Self-Employment: About 48.40 percent people of our total population

have been able to employ themselves in agriculture. About 80 percent of
the people residing in the rural areas are employed in the sector.
vi.
Animal Foods: Bi-products of agriculture are used as food for the cattle
and these are treated as contributing factors for raising cattle resources.
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Agriculture in Comilla District:
There are 16 upozillas in the Comilla district. These are the- Adarsha
Sadar, Barura, Brahmanpara, Burichang, Chandina, Chauddagram, Comilla
Sadar Dakshin, Daudkandi, Debidwar, Homna, Laksam, Monohorganj,
Meghna, Muradnagar, Nangalkot and Titas. The condition of agriculture of
comilla district is mostly stable and prominent compare to the other
districts of Bangladesh. Every types of crops and all other agricultural
factors are stayed here. The Comilla Model, which began in 1959, has been
the most successful and influential example of cooperative agricultural
development in Bangladesh. Projects in Comilla District provided more
modern technologies to farmers: low-lift water pumps; low-cost hand-dug
six-inch tube wells; pilot research on adapting thirty- five-horsepower
tractors for rice cultivation; new crop and animal varieties; testing and
introduction of such inputs as chemical fertilizers, pesticides, and high-yield
varieties of seeds; and new storage and processing technology. These
innovations attracted resources to local rural institutions, against the
prevailing urban orientation of the leadership elite. They provided some
counterweight to the trend of ambitious village people seeking to leave the
countryside in favor of the cities or foreign countries.
Crops Production in Comilla District:

We already stated there are various types of crops in our country and most
of them are produced in the comilla district. The sandy soil of Comilla is
very helpful to ensure more production. The production of several in
Comilla district is given belowCrops
Production in Metric Production in Metric

Ton (2009-2010)
Ton (2010-2011)
Rice
9,56,454
12,62,974
Wheat
5,461
5,970
Jute
11,772
10,661
Sugar Cane
2,965
3,301
Potato
30,9419
19,5033
Table-6: Crops Production in Comilla District.
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Irrigation Management of Comilla District:

We know that irrigation is the part and parcel of the agriculture. By
collecting and analyzing data we can say that the irrigation management of
Comilla district is so well and organized. A short scenario of irrigation
management of Comilla district in 2010-2011 is given belowUsed tools
Usages of tools(in
acre)
Power Pump
165339
Tube Well
24301
Doon
2215
Swing Basket
2212
Canal
226
Others
48234
Total
199749
Table-7: Irrigation management in Comilla District.
Usage and Distribution of Chemical Fertilizer in Comilla

District:
Fertilizer is the main source of power of the plants. For this reason
fertilizer play a vital role to increase production day day. The usage and
distribution of fertilizer in 2010-2011 in Comilla district are given belowChemical Fertilizer
Distribution(in metric Usage(In metric

ton)
ton)
UREA
85290
79797
TSP
28505
28201
MP
6041
22382
DAP
18774
2502
Others
13334
7846
Table-8: Usage and Distribution of Chemical Fertilizer in Comilla District.
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High Yielding Variety (HYV)

The expansion of modern agricultural farming practices like use of
High Yielding Variety (HYV) together with intensified cultivation is needed
to ensure food for all, which led to an increasing demand for fertilizers. It is,
therefore, necessary to ensure timely supply of both organic and chemical
fertilizers to meet the nutritional demand of these varieties. The use of
chemical fertilizer is on the increase with the increasing demand for food
production in the country. The use of urea fertilizer alone was the highest.
Brief Discussion on Boro Rice

The
major food crop of Bangladesh is Boro.
The paddy which is
planted in mid November to February and reaped in the month of April to

June, is called Boro.
There are three types of Boro namely-Local Boro, High Yielding Variety
(HYV) Boro and Hybrid Boro Presently Boro tops the list of paddy
production.
The major crops currently harvested are the irrigated Boro rice . Boro is the
major season for rice, accounting for about 50 % of total annual
production. This years Boro paddy harvest is estimated at a record level of
about 19 million tonnes, some 1.6 % above last years bumper output.
Generally
adequate
irrigation
supplies
coupled
with
distribution
of
subsidized fertilizer, quality seeds, and electricity power and diesel for
irrigation, were responsible for the increase.
Local Boro : From time immemorial this type of paddy has been
cultivating in our country and is said to be local variety Boro. Planting
time of this variety is mid November to December and harvesting
time is April to May. It gives relatively lower yield rate.
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HYV Boro: The name HYV has been originated for its high yielding
capacity. In the decade of 1960, HYV was introduced and through the
pass of time this HYV has been extended very rapidly to meet the
demand of the cereals in the market. Time of transplantation of HYV is
mid December to February and reaping time is May to June.
Hybrid Boro : This variety has brought revolutionary change in
respect of yield rate. The sowing and harvesting time of Hybrid Boro is
the same as that of HYV. The seeds are very much environment
sensitive and farmers cannot preserve the seeds domestically. These
are preserved in seeds producing institutions. And farmers have to
procure seeds from these institutions.
Harvesting Period:
Generally Boro harvest period is Mid-April to Mid-June.
Selling Period:
Generally Boro selling period is Mid-June to October.
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Introduction to some HYV Boro Rice:

Name: BR -01(chandina)
Description
Discovered from(crossing):IR262-43-03 &TKM-06
Year of discovering:1970
Monsoon: Boro & Aush
Harvesting period(reaping
period):150 days
Production/hectares: 5.5 tones
Main/special use: Rice
Picture
Name:BR-28
Description
Discovered
from(crossing):BR-06&
Purbachin
Monsoon:Boro
period):140 days
Production/hectre:06 tones
Main/special use:Rice
Picture
Name:BR-03(Biplob)
Description
Discovered
from(crossing):IR 506-13301 & Latishail
Monsoon: Boro & Aman
period):170 days
Production/hectares:
6.5tones
Main/special use: world
famous for rice
Name: BR-50(Banglamoti)
Picture
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Description
Picture
Discovered from(crossing):
BR-30 & IR-67684
Monsoon: Boro
period):155 days
Production/hectre: 06 tones
Main/special use: perfumed
rice
Name: BR hybrid -01

Description
Hybrid IR-696908H
Monsoon:Boro
period):155 days
Production/hectre:8.5 tones
Main/special use:Rice
Picture
Name: BR -16(Shahibalam)
Description
IR1416-131-5,
IR-1364-37-03-01 & IR1514A-E666
Monsoon:Boro & Aush
period):165 days
Production/hectre: 06 tones
Main/special use: High
quality Muri, Rice.
Picture
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Analysis of Data:
Measuring the Cost of production of HYV Boro Rice in
Comilla district
1. Measuring cost of production of HYV Boro rice on the basis of types of
land ownership, types of Boro rice, format of cultivation and
expenses(Tk) that are given by Table:
Responde
nts
Types of
Boro
Rice(cod
e)
Amount of
land(decim
als)
Types of
ownershi
p
Farmer -1
BR-28
BR-36
BR-28
BR-28
BR-28
BR-36
07
10
44
90
60
20
BR-28
160
Own
Own
own
own
Own
Adoratio
n
Own
Farmer -2
Farmer -3
Farmer -4
Farmer -5
Format
of
cultivati
on
(machin
e)
200
300
1800
2600
1800
600
Other
expense
s
(tk)
Total
amount
(tk)
----200
200
-----
200
300
2,000
2,800
1,800
600
4800
---
4800
(Source: Field Survey, 2015)
2. According to Seeds, Preparing stage of seeds, withdrawal of plants,

selling and buying of plants, number of labor and expenses that are
given by table:
Responden
ts
Types of
stages of
seeds
Seeds
Costs (Tk)
Labor
needs to
prepare
stages of
seeds
costs(Tk)
Farmer -1
Farmer -2
Farmer -3
Hybrid-3
Hybrid-3
Hybrid-3
560
600
1,800
350
900
800
Withdrawal
of plants
on the
basis of
number of
labor
costs(tk)
350
600
800
Total
amount(tk)
1,260
2,100
3,400
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Farmer -4
Farmer -5
Hybrid-3
Hybrid-3
1,320
5,400
1,400
1,050
---1,400
2,720
7,850
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3. According to the costs of usage amount of Fertilizer (kg) and price:

Responden
ts
Uria
Costs (tk)
TSP
costs(tk)
Potash
costs(tk)
Cow dung
Fertilizer
costs(tk)
Total
amount(tk)
Farmer
Farmer
Farmer
Farmer
Farmer
340
880
500
1,000
1,800
245
220
700
280
2,800
245
150
720
288
1,296
340
400
1,000
1,000
----
1,170
1,650
2,920
2,568
5,896
-1
-2
-3
-4
-5

4. According to costs of usage amount of Insecticide and it costs:
Responden
ts
Basudin
Costs (tk)
Furdan
costs(tk)
Brifer
costs(tk)
Sunthiyon
costs(tk)
Total
amount(tk)
Farmer
Farmer
Farmer
Farmer
Farmer
170
320
340
340
-----
180
------------780
---------------------
--------------------------
350
320
340
340
780
-1
-2
-3
-4
-5
5. According to usage of irrigation and its costs (taka):

Respondents
By Machine
(Electric) tk.
Other
expenses (tk)
Total
amount(tk)
Farmer
Farmer
Farmer
Farmer
Farmer
550
1,600
3,000
2,400
5,600
----------------
550
1,600
3,000
2,400
5,600
-1
-2
-3
-4
-5
29 | P a g e
6. According to harvest of plants, Clean of weeds and cutting paddy &

other expense (tk):
Responden
ts
Harvest of
plants (tk)
Clean of
weeds (tk)
Cutting
paddy(tk)
Farmer
Farmer
Farmer
Farmer
Farmer
700
1,500
3,500
3,850
6,650
1,400
1,200
1,400
1,750
3,500
1,400
900
4,550
4,200
8,050
-1
-2
-3
-4
-5
Other
expenses
(tk)
700
900
1,400
2,100
1,750
Total
amount(tk)
4,200
4,500
10,850
11,900
19,950
7. According to producing paddy and subsistence amount (mon) and

price (tk)
Respondents
Paddy Price (tk)
Farmer
Farmer
Farmer
Farmer
Farmer
5,625
14,000
33,000
33,750
54,000
-1
-2
-3
-4
-5
Subsistence
(khor) tk.
1,400
3,200
6,400
5,600
11,200
Total amount (tk)

7,025
17,200
39,400
39,350
65,200
Returns at a glance of our respondents in a boro

monsoon:
Responde
nts
Total
sells
or
gross
profit
Primary
expans
es
(table
-1)
Farmer -1
7,025
Farmer -2
17,20
0
39,40
0
Farmer -3
Cost
of
fertiliz
ers
(table3)
Cost of
insectic
ide
(table4)
Cost of
irrigatio
n
(table5)
Cost of
Procrast
ination
(table-6)
Net
profit
{Total
sells
(1+2+3
+4+5+
6)}
500
Seeds
&
seedli
ngs
expan
ses
(table2)
1,260
1,170
350
550
4,200
-1,005
2,000
2,100
1,650
320
1,600
4,500
5,030
2,800
3,400
2,920
340
3,000
10,850
16,090
30 | P a g e
Farmer -4
Farmer -5
39,35
0
65,20
0
2,400
2,720
2,568
340
2,400
11,900
17,022
4,800
7,850
5,896
780
5,600
19,950
20,324
31 | P a g e
Discussion on the Basis of Field Survey:

By
conducting field survey, we can see that most of the farmers in

Comilla area want to plant the BR-28, BR-29, BR-36 etc. and most of them
stated that cultivation of boro rice is not profitable as they desire. There is
a little bit profit. For this reason most of the farmers are diverted to other
occupation for their livelihood. There is another vulnerable issue that the
interest rate of agricultural loan is between 25% to 40% which is alarming
for the poor farmers. Besides there are a lots of problem in the agriculture
which are stated below-
Dependent on nature: Raining is not proportionate in all seasons.

Besides, our irrigations systems are also primitive. So we have to
depend on nature for cultivation. It is one of the main obstacles in
agriculture.
Natural calamities: Much of Bangladesh lies in disaster-prone,
floodplain areas. Annual flooding and occasional flash flooding,
together with other periodic natural disasters, often cause crop
damage and food shortage for vulnerable populations. Consecutive
floods in August-September and Cyclone sider in November 2007
caused severe losses to crops, lives, infrastructure and properties.
High cost of agricultural production: The prices of fertilizers and fuel
have risen continuously and steeply in recent years, but he prices of
farm products have not kept pace. This deteriorating input to output
ration for all crops decreases farmer profitability.
Insufficient agricultural technology: Our agriculture cant be improved
because of insufficient agricultural technology.
Addressing problems of low soil fertility: To increase crop production in
response to increasing population, forests are constantly being
cleared to make room for new, arable land. This large scale removal of
forests is resulting in the reduction of soil fertility. On the other hand,
32 | P a g e
cultivable lands lose their fertility after a certain number of cultivation

cycles. These lands require treatment.
Lack of knowledge on agriculture: In order to apply scientific method
of cultivation, we have increase knowledge of agriculture. Most of the
farmers in our country are illiterate. They dont know how to apply
scientific method of cultivations. As a result our production decreases.
Poor farmers: Most of the farmers in our country are landless. They
use others land for cultivation. As they have no capital, they cant buy
seeds , fertilizer and preservative in proper time. So they cant use
land properly.
Insufficient input: Improved seeds, fertilizer, preservative and other
inputs of agriculture are not available. Most of the time greedy
businessmen hoard the essential inputs of agriculture. As a result the
farmers face scarcity of inputs.
Improper marketing: Because of undeveloped transportation, farmer
cant sell their product in proper time. As a result, they deprive form
real price.
Increasing population: The growth rate of Bangladesh is 1.58%.
Because of increasing population we have to build more school,
college, road, university, building etc. as a result cultivable land
decreases.
Want of agricultural co-operative society: Agricultural co-operative
society helps farmer to increase production. But in our country we
dont have genuine co-operative society. As a result, our agricultural
production decreases.
Using unproductive seeds: Most of the farmers in our country use
unproductive seeds. Lack of agricultural knowledge, they cant use
productive seeds. As a result, our agricultural production decreases.
Lack of diversity: Land diversity is very much needed to maintain the
fertility of soil. A large percentage of cultivatable land is allocated to
33 | P a g e
rice despite the country having the environment to produce a number

of crops, trees and horticultural species.
Lack of proper steps: To achieve any goal, we have to take proper

steps: In order to increase agricultural production we need not only
standard planning but also proper step. In our country policy maker
take may planning, but want of proper steps cant be effective.
Processing: Every year 10-20 percent of total production are rotten,
want of processing. Sometimes production is greater than demand.
On this time market price decrease.
Establishment of industry: Sometimes in our country government and
private sectors collect cultivable land to establish industry. And thus
our agricultural land decrease.
Undeveloped transportation and communication: The transportation
facilities form village to city is not so good. As a result most of the
time crops are rotten and farmers deprived of their profit.
34 | P a g e
Recommendation
From
the conduction of the research in two villages, several

recommendations can be prescribed for the benefit of the Bangladeshi
farmers. These are:
Constant monitoring of supply, storage, price and quality of seed and
fertilizers at various levels should be ensured.
Stress should be given by the government on procurement and
distribution of fertilizers both at the private and the public sectors.
Steps to be taken to maintain a fertilizer buffer stock at the regional,
district and Upazilla level.
Government should facilitate for availability of quality fertilizers and
seeds at end users (farmers) level.
Open market sell of seeds and fertilizer as demanded by farmers
could be extended.
The loan facilities should be increased.
Irrigation cost must be minimized.
The government will pioneer research and development of
appropriate agricultural machinery and equipment.
The government will encourage production and manufacturing of
agriculture machinery locally.
Periodical training program will be conducted for the better knowledge
about the modern agricultural tools.
Ensuring agricultural subsidy to reduce the cost.
Finally, both private and public sectors should be encouraged in
improving agricultural products through values addition activities.
35 | P a g e
Conclusion
Being
an agricultural country Bangladesh is one of the smallest

countries of the world. As the population of the country is about 16 crore,
so food security is a burning question for her. The most of her inhabitants
directly or indirectly are involved in agricultural activities for their
livelihood. Against the backdrops of global recession, commodity price
hikes and food shortages, measures have been taken to meet the
increasing food demand by increasing domestic production. Special
emphasis has been given to build up a modern agricultural system,
introduction of new technologies and expansion of opportunities for
agricultural research. Furthermore, measures for increasing subsidy on
inputs to agriculture, expanding irrigation and making agricultural inputs
more available, preserving the harvest and ensuring fair price of corps and
agro-productivity
36 | P a g e
Bibliography:
Mohammad Shamsul Kabir Khan And Dr. Daulatunnahar Khanam,
Bangladesh Studies, 2nd Edition, Chaity Chayon Prokashoni.
Maziruddin. 1989. Markets and Marketing Policies in Acceleariting
Agricultural Growth. In Bangladesh Agriculture Sector Review.
Compendium 4, Markets and Prices. Dhaka: Ministry of Agriculture,
Government of Bangladesh.
M Ashadduzzaman, march 2009. Getting Agricultural Moving Once Again: Strategic
Options for post HYV Agriculture in Bangladesh.
Bangladesh Economic Review 2010 (Finance Division, Ministry of Finance).
Bangladesh Rice Research Institute (BRRI).
Bangladesh Agricultural Research Institute (BARI).
Bangladesh Bureau of Statistics(BBS)
District Statistics 2011, Comilla, Bangladesh Bureau of Statistics(BBS).
Field Survey, 2015.
37 | P a g e

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Measuring the Production Cost and Returns of HYV Boro Rice Farmers

Term Paper on:

D R . S HAIKH M OKSADUR R AHMAN

Term Paper on:

Name of The Students

Md. Robiul Hasan

Md. Easir Arafat

Mohammed Rafiqul Islam

Course Title: Cost Accounting

Scope of the Study:

Objectives of the study:

Methodology of the study

Secondary data: Secondary data were used and these were

Limitations of the Study

have worked to prepare the term-paper more accurately; we

Shortage of time was another limitation to prepare this paper.

Overview of Agriculture of Bangladesh at a Glance:

Total farm holding

Projected Rice Demand

The total direct demand

Table-1: Agriculture of Bangladesh at a Glance

is the backbone of the economy of Bangladesh. Even in

Recent Achievement in Agriculture Production (million Metric

Table3: Recent Achievement in Agriculture Production

Poultry Industry of Bangladesh:

Traditional rural backyard scavenging

Livestock Sector in Bangladesh:

Fisheries and Aquaculture in Bangladesh:

Agricultural Based Research Centers/Institutes in

Manik Mia Avenue,

Characteristics of Agriculture in Bangladesh

by the vagaries of nature. There is a common word that agriculture in

Role of Agriculture in the Economy of Bangladesh

Food: Necessary food for our increasing population comes from

Government Income: Government income is intimately connected with

Self-Employment: About 48.40 percent people of our total population

Agriculture in Comilla District:

Crops Production in Comilla District:

Production in Metric Production in Metric

Irrigation Management of Comilla District:

Usage and Distribution of Chemical Fertilizer in Comilla

Distribution(in metric Usage(In metric

High Yielding Variety (HYV)

Brief Discussion on Boro Rice

major food crop of Bangladesh is Boro.

The paddy which is

planted in mid November to February and reaped in the month of April to

Introduction to some HYV Boro Rice:

Name: BR hybrid -01

(Source: Field Survey, 2015)

2. According to Seeds, Preparing stage of seeds, withdrawal of plants,

(Source: Field Survey, 2015)

3. According to the costs of usage amount of Fertilizer (kg) and price:

(Source: Field Survey, 2015)

(Source: Field Survey, 2015)

5. According to usage of irrigation and its costs (taka):

(Source: Field Survey, 2015)

6. According to harvest of plants, Clean of weeds and cutting paddy &

(Source: Field Survey, 2015)

7. According to producing paddy and subsistence amount (mon) and

Paddy Price (tk)

Total amount (tk)

(Source: Field Survey, 2015)

Returns at a glance of our respondents in a boro