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Report on the Cost of Production of Jute Crop 2008-09 Report on the Cost of Production of Jute Crop 2008-09 Updating and Extension of Agriculture Cluster Plots and Survey of Cost of Production Project (UCPSCP) BANGLADESH BUREAU OF STATISTICS Planning Division Ministry of Planning Secretary Statistics Division Ministry of Planning Foreword Bangladesh is basically an agriculture based country. Though the contribution of industrial sector to the gross domestic product (GDP) is gradually increasing over the decades still agriculture sector plays strong dominance in the economy of Bangladesh. Most importantly, food security of the vast population of the country is critically dependent on the production of crops locally. Therefore, the development of agriculture sector is directly related with the development of our country. Cost plays a vital role on production of agricultural crop. Every year Government declares procurement prices before harvesting time of different crops. UCPSCP Project of Bangladesh Bureau of Statistics has undertaken the survey of 10 crops ( 6 Major Crops and 4 Minor Crops) with an aim to know the cost of production. I am happy to know that the UCPSCP Project performed successfully the responsibility of conducting surveys for the first time. I hope that data presented in this publication would be very much helpful and useful in policy formulation and planning for the development of agricultural sector of the country. I would like to extend my thanks to the Director General, BBS, the Project Director and her other colleagues who worked hard to prepare this report. Dhaka, Riti Ibrahim June,2010 i Director General Bangladesh Bureau of Statistics Ministry of Planning Preface Agriculture is the basic culture of Bangladesh. From the time immemorial, the main source of livelihood of the population of this land is agriculture. It plays an important role in the economic development of the country and has a great contribution to the Gross Domestic Product (GDP). Crop production largely depends on weather variables such as rainfall, temperature, humidity etc. Moreover, Bangladesh is known as a country of natural calamity in the world. Government is fully aware of natural disaster. Government has been allocating considerable annual budget for the development of agriculture and launching different programmes one after another in order to boost up crop production. In order to formulate proper policy and planning for the development of agriculture sector reliable and realistic data regarding production cost of crops by different phases such as leasing value of the land, land preparation, seeds/ seedlings, weeding, insecticides, fertilizers, harvesting, drying etc. are needed. Keeping these issues in active consideration, the UCPSCP Project under the control of the Bangladesh Bureau of Statistics (BBS) has been given the responsibility of surveying 10 crops (Aus, Aman, Boro, Jute, Wheat, Potato, Maize, Oil Seeds, Onion and Pulses) for the first time for deriving the cost of production of crops by interviewing farmers in the field. I express my deep gratitude to the members of the Technical Committee who rendered technical guidance for the selection of sampling units and finalization of questionnaire for the survey purpose and other survey matters. I would like to thank all those who are associated in different works of the survey. I take opportunity to convey thanks to Mrs. Salima Sultana, Project Director and other officers and staff members of BBS who worked very sincerely to finalize the report. Dhaka, Md. Shahjahan Ali Mollah June, 2010. ii Contents Page # Foreword i Preface ii Contents iii-iv Key findings, at a glance v-vi Chapter-1 : Introduction 3 1.1. Jute : The major cash crop of Bangladesh 4 1.2. Jute as export commodity 4-6 1.3. Production of jute 6-8 1.4. Objective of the survey 8 Chapter-2 : Methodology 11-19 2.1. Sample Design 11-13 2.2. Data collection 13-19 2.3. Tabulation 19 2.4. Data analysis and Data Dissemination 19 Chapter-3 : Main findings of the survey 22-39 3.1. Jute Producing Households 22-23 3.2. Jute cultivation in light of land tenureship 23-24 3.3. Area, Production and yield of jute (as per survey area) 24-26 3.4. Labourer and family labourer employed for production of jute 26-29 3.5. Production cost of jute 29-39 3.5(a). Per maund Production cost and farm-gate price of jute and jute stalk 29-30 3.5(b). Per acre cost of land preparation 30-31 3.5(c). Per acre cost of seeds 31-32 3.5(d). Per acre cost of fertilizer 32-33 3.5(e). Per acre cost of insecticides 33-34 3.5(f). Per acre number of labourers and wages for weeding and harvesting 34-35 3.5(g). Per acre number of labourers and wages for retting, peeling and drying 36 3.5(h). Per acre leasing cost for jute cultivation 37 3.5(i). Productivity of jute per acre 37-38 3.5(j). Per acre total production cost by components 39 iii Chapter-4 Statistical Table 42-45 4.1 Total number of labourers engaged in production Jute for the year 2008-09 by different components 42 4.2 Total seeds used (in Kg.), and total cost (in Tk.) 42 4.3 Total cost of insecticides (in Tk.). 42 4.4 Total number of labourers employed in Weeding and Wages (in Tk.) 43 4.5 Total number of labourers employed in Harvesting and Wages(in Tk.) 43 4.6 Total number of labourers employed in retting and Wages(in Tk.) 43 4.7 Total number of labourers employed in peeling and Wages(in Tk.) 44 4.8 Total number of labourers employed in drying and Wages(in Tk.) 44 4.9 Total leasing cost (in Tk.) for jute cultivation 44 4.10 Total area under jute, Total production (in maund) of jute fibre and stalk (as per survey area) 44 4.11 Total fertilizer used(in Kg.)and total cost (in Tk.) 45 Annexure Annexure A Concepts and Definitions 48-50 Annexure B Statement-I 51 Annexure C Sampling Error and data reliability of Jute crop 52 Annexure D Questionnaire (Bangla) 53-54 iv Key Findings: At a glance SL. No. Items of study Result 1. Percentage of household having jute cultivation in the sample area 17.52 2. Percentage of household growing Jute by land tenure: a. Own 68.19 b. Share cropping 14.21 c. Mortgage 11.38 d. Lease 1.36 e. Others 4.85 3. Yield of jute fibre per acre(in maund) 20.40 4. Yield of jute stalk per acre (in maund) 25.50 5. Number of labourers employed by component for per acre production of jute: a. Weeding 22 b. Harvesting 13 c. Retting 5 d. Peeling 11 e. Drying 5 Total 56 6. Number of family labourers worked for per acre jute production 10 7. Production cost of jute per maund (in taka) 759 8. Farm-gate price per maund ( in taka): a. Jute fibre 880 b. Jute stalk 182 9. Cost of land preparation per acre (in taka): 1898 10. Cost of seeds per acre (in taka) 452 v Key Findings: At a glance SL. No. Items of study Result 11. Cost of fertilizers by type per acre (in taka): a. Urea 395 b. TSP 224 c. MoP 124 d. DAP 240 e. Organic 70 Total 1053 12. Cost of insecticides per acre (in taka) 126 13. Cost of weeding per acre (in taka) 3331 14. Cost of harvesting per acre (in taka) 1850 15. Cost of retting per acre (in taka) 712 16. Cost of peeling per acre (in taka) 1627 17. Cost of drying per acre (in taka) 594 18. Cost of leasing per acre (in taka) 3832 vi Chapter 1 2 Introduction Bangladesh is an agricultural country. The most of her inhabitants directly or indirectly are involved in agricultural activities for their livelihood. Agriculture has a great contribution to the GDP of the country. Earlier more than 50% of GDP came from this sector. When industrialization transition starts happening the activities of the population starts 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. Bangladesh by birth possesses very fertile land in which diversified crops grow very easily. Various types of crops are produced in this country. These crops might have been categorized into two-food crops and cash crops. Jute is the most important cash crop of Bangladesh. Bangladesh is earning a huge amount of foreign currency through exporting jute abroad. Earlier about 75% of foreign exchange was earned by this country through exporting jute and this is why the jute was called the “Golden fibre” of Bangladesh. Due to the presence of synthetic fibre the market for jute and jute goods became limited. Demand for jute abroad started reducing to a remarkable extent and it was a bolt from the blue for the jute production and export of Bangladesh. Farmers got less interest for the production of jute. As a result, production of jute also started reducing. Now the situation is changing. Realization about the bad effect of synthetic fibre and good effect of natural jute fibre to the environment is increasing day by day among the people of the country and abroad. As a result, jute is getting back its past glory. This is the proper time for the government and the private sector to work together with sincerity to boost up the jute production using modern technology to retain the position in the export field of the competitive free market.
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