IAR Journal of Agriculture Research and Life Sciences

ISSN Print : 2708-5090 | ISSN Online : 2708-5104

Frequency : Monthly
Language : English
Origin : Kenya
Website : https://www.iarconsortium.org/journal-info/iarjals
Research Article

Profitability and Technical Efficiency of Binamoog-8 Production in

Some Selected Areas of Bangladesh

Article History
Received: 11.09. 2020
Accepted: 25. 09 .2020
Revision: 05. 10. 2020
Published: 10. 10. 2020
Author Details
Md. Mohsin Ali Sarkar1*, Md. Habibur
Rahman2, Mohammad Rashidul
Haque3, Syful Islam4 and Razia
Sultana5
Authors Affiliations
1
Senior Scientific Officer, Agricultural
Economics Division, Bangladesh Institute of
Nuclear Agriculture, Mymensingh,
Bangladesh.
2
Principal Scientific Officer, Agricultural
Economics Division, Bangladesh Institute of
Nuclear Agriculture, Mymensingh,
Bangladesh.
3
Senior Scientific Officer, Agricultural
Economics Division, Bangladesh Institute of
Nuclear Agriculture, Mymensingh,
Bangladesh
4 Mungbean
Scientific Officer, Agricultural Economics
Division, Bangladesh Institute of Nuclear
Agriculture, Mymensingh, Bangladesh
5
Scientific Officer, Agricultural Economics
Division, Bangladesh Institute of Nuclear
Agriculture, Mymensingh, Bangladesh
Corresponding Author*
Md. Mohsin Ali Sarkar
Copyright @ 2020: This is an open-access article cancer, inflammation, etc. The phytoestrogens present in mungbean help
distributed under the terms of the Creative
Commons Attribution license which permits
unrestricted use, distribution, and reproduction essential for young and healthy skin. It also contains amino acid lysine,
in any medium for non commercial use
(NonCommercial, or CC-BY-NC) provided the
original author and source are credited.
(Abedin et al., 1991). Out of the total cropped area of 14.08 million ha., pulses occupy 0.73 million ha which is about
5.3% of the total land area. The annual requirement of pulses in Bangladesh is about 2.5 million tons considering
Abstract: The study was conducted in five intensive Binamoog-8 (a mungbean
variety developed by BINA) growing areas of Bangladesh namely Pabna,
Magura, Natore, Jashore and Rajshahi district to estimate the profitability and
technical efficiency of the variety. A total of 200 farmers, 40 from each district
were randomly selected as sample size for conducting the study. In the study,
costs and return analysis were done on both cash cost and full cost basis for
estimating profitability. The study found that the variety was profitable. The
benefit cost ratio (BCR) was 1.87 and 2.95 on full cost and cash cost basis,
respectively. The stochastic Cobb-Douglas production frontier model was used
for estimating technical efficiency of Binamoog-8 producer in the study areas.
The mean efficiency of the Binamoog-8 producers was 88.5%, which indicates
that they were made a production loss of 11.5% due to inefficiency factors.
Farmers faced some constraints in cultivating of the variety. Out of them the
major constraints were lack of high-quality seed, disease and pest infestation, pod
maturity in different times, high price of insecticides, lack of capital, lack of
training and rainfall during germination period.
Keywords: Profitability, Binamoog-8, technical efficiency, frontier model,
Bangladesh.
INTRODUCTION
Mungbean (Vigna radiataLin.) is one of the most important pulse
crops in Bangladesh. Among the pulse crops, mungbean ranks third
position in terms area and production in Bangladesh (BBS, 2018) and
among the food legumes grown, lathyrus, lentil, chickpea, blackgram, and
mungbean are the major and they contribute more than 95% to the total
pulses production in the country (Rahman, 1998).
Mungbean (Vigna radiata) is widely grown in Bangladesh.
grain contains 19.5% to 28.5% protein (AVRDC, 1988).On
the basis of production, India represents the largest producer of mungbean
accounting for the majority of the total global production in 2015. Other
major producers of mungbean include China and Thailand. Like most
other lentils, they are rich in essential dietary nutrients such as proteins,
fibre, anti-oxidants and vitamins. The various minerals found in
mungbean include potassium, copper, magnesium, manganese, zinc, etc.
They are used with or without skin, split or whole, cooked or sprouted
depending on the cuisine and properties desired in the dish. Furthermore,
mungbean also help in preventing and controlling certain ailments and
lifestyle diseases such as diabetes, heart diseases, osteoporosis, digestion,
in the production of collagen, hyaluronic acid and elastin which are
which is generally deficit in food grains (Elias, 1986). Apart from these,
the ability y to fix nitrogen and addition of organic matter to the soil are
important factors in maintaining soil fertility (Senanayake et al., 1987;
Zapata et al., 1987). Major area of mungbean is replaced by cereals

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45g/capita/day. But the annual production is less than 0.54 million ton. Per capita availability of pulses in the country
thus remains far short of the demand.

Now a days, it is being cultivated after harvesting of Rabi crops (wheat, mustard, lentil, etc.). As mungbean is a
short duration crop, it can fit in as a cash crop between major cropping seasons four varieties of mungbean have been
developed by Bangladesh Institute of Nuclear Agriculture (BINA) and disseminated with the package of management
technologies to the farmers for cultivation. Therefore, Binamoog varieties especially Binamoog-8 cultivation is gaining
popularity day by day among the farmers. Sustainability of any crop cultivation is mainly depends on its economic aspect
but limited study was done on Binamoog-8 in this regard. In view of the discussion, the present study was undertaken
with the following objectives:
i) to estimate the profitability of Binamoog-8;
ii) to determine the technical efficiency of Binamoog-8; and
iii) to identify the major constraints to Binamoog-8 cultivation in Bangladesh.

METHODOLOGY
Sampling Technique:
The study was conducted in five districts, namely Pabna, Magura, Natore, Jashore and Rajshahi during April
2016. A total of 200 Binamoog-8 farmers taking 40 farmers from each districts were randomly selected with the help of
Department of Agricultural Extension (DAE) personnel for interview. Field investigators under the direct supervision of
the researchers collected field level cross sectional data using pre-tested interview schedule.

Method of Data Collection and Period of Study:

Data for the present study were collected from sample Binamoog-8 farmers through face to face interview
method using a pre-tested interview schedule. Field level primary data were collected by the researcher with the help of
trained enumerators for the period of March-April, 2016.

Analytical Techniques:
Collected data were edited, summarized, tabulated and analyzed to fulfill the objectives of the study. Both fixed
cost and variable cost were taken into account in calculating cost of Binamoog-8 cultivation. Land use cost was
calculated on the basis of per year existing lease value of land. The profitability of Binamoog-8 cultivation was examined
on the basis of gross margin, net return and benefit cost ratio analysis. The opportunity cost of family supplied labour
was taken into consideration in estimating total cost or full cost. In calculating gross margin, all operating costs were
considered as variable cost.

Estimation of Technical Efficiency:

The stochastic Cobb-Douglas production frontier model was used for estimating technical efficiency of
Binamoog-8 producer in the study areas. The empirical Cobb-Douglas stochastic frontier production function with
double log form can be expressed as:
LnY = β +β LnX +β LnX , +β LnX , +β LnX , +β LnX , +β LnX , +β LnX , +β LnX +v - u (I)
i 0 1 1i 2 2i 3 3i 4 4i 5 5i 6 6i 7 7i 8 8i i i

Where,
Ln = Natural logarithm,
Y = Yield of Binamoog-8 of the i-th farm (kg/ha)
X = Human labour used by the i-th farm (man-days/ha)
1
X = Land preparation cost used by the i-th farm (Tk./ha)
2
X = Seed cost used by the i-th farm (kg/ha)
3
X = Fertilizer used by the i-th farm (kg/ha)
4
X = Irrigation used by the i-th farm (Tk./ha)
5
X = Organic manure used by the i-th farm (Kg/ha)
6
X = Insecticides cost used by the i-th farm (Tk/ha)
7
X = Dummy for sowing date
8
β’s and η’s are unknown parameters to be estimated
V – u = error term
i i
2
V are assumed to be independently and identically distributed random errors, having N (0, σ ) distribution.
i v

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Technical Inefficiency Effect Model

The u’s in equation (I) are non-negative random variables, called technical inefficiency effects, assumed that to
th
be independently distributed such that the technical inefficiency effects for the i farmer, u, are obtained by truncation
2
normal distribution with mean zero and variance σ , such that
u

u = δ +δ z +δ z + δ z , +δ z + δ z , + W (2)
i 0 1 1i 2 2i 3 3i 4 4i 5 5i i
where,
z = Age of the i-th farm operator (years)
1
z = Education of the i-th farm operator (year of schooling)
2
z = Experience in Binamoog-8 farming of the i-th farm operator (year)
3
z = Farm size of the Binamoog-8 growers of i-th farm operator (decimal)
4
z = Dummy for training
5
δ‘s are unknown parameters to be estimated

W are unobservable random variable or classical disturbance term, which are assumed to be independently
i
2
distributed, obtained by truncation of the normal distribution with mean zero and unknown variance σ , such that u is
non-negative.
The β, η and δ coefficients are unknown parameters to be estimated, together with the variance parameters which are
expressed in terms of
2 2 2
σ =σ +σ (3)
u v
2 2
and γ=σ |σ (4)
u

γ is the ratio of variance of farm specific technical efficiency to the total variance of output and has a value
between zero and one.

The estimates for all parameters of the stochastic frontier (I) and inefficiency model (2) were estimated in a
single stage by using the Maximum Likelihood (ML) method. The econometric computer software package FRONTIER
4.1 (Coelli, 1996) was applied to estimate the parameters of stochastic frontier models using the ML method.

RESULTS AND DISCUSSION

Cost of Binamoog-8 cultivation
From Table 1, the average costs of Binamoog-8 cultivation were Tk. 46826 and Tk. 29723 per hectare on full
cost and cash cost basis, respectively. The highest cost was incurred for human labour (47%) followed by fertilizers
(11%), power tiller (10%) and irrigation cost (7%). The cost of Binamoog-8 cultivation was found highest in Rajshahi
(Tk. 49336 ha-1) followed by that in Jashore (Tk. 48481 ha-1), Pabna (Tk. 46656 ha-1), Magura (Tk. 45871 ha-1) and
Natore (Tk. 43787 ha-1) respectively.

Table 1: Cost of Binamoog-8 cultivation by the sample farmers in the areas

Cost of production (Tk. ha-1)
Cost Component Average
Pabna Magura Natore Jashore Rajshahi
Human-labor (man-days
21584 22445 20284 23165 23484 22192 (47)
ha-1)
Family 6203 5877 7344 7855 7535 6963
Hired 15381 16568 12939 15309 15949 15229
Power tiller 4252 4466 4147 4852 4920 4527 (10)
Owned 1833 1662 1262 1584 1930 1654
Hired 2419 2803 2884 3268 2990 2873
Seed 2160 2452 2421 2570 2486 2418 (5)
Owned 488 544 440 522 570 513
Purchased 2160 1908 1981 2048 1916 2003
Fertilizer 5401 5158 4986 5293 5380 5244 (11)

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Organic manure (owned) 950 890 792 957 880 894 (2)
Insecticide 1651 1812 1965 1583 1856 1773 (4)
Irrigation 3651 3142 3580 3198 3478 3410 (7)
Owned 840 680 745 822 956 809
Hired 2811 2462 2835 2376 2522 2601
Interest on operating
2124 2348 2235 2595 2284 2317 (5)
capital
Total Fixed cost 4883 3158 3377 4268 4568 4051 (9)
Total cash cost 29823 30711 27590 29877 30613 29723 (63)
Total variable cost 41773 42713 40410 44213 44768 42775 (91)
Total Cost 46656 45871 43787 48481 49336 46826 (100)
Note: Figures in percentages indicate the percentage of total cost

The average yield of Binamoog-8 was found to be 1634 kg ha-1 (Table 2). The yield was highest at Pabna (1705
kg ha ) followed by Magura (1694 kg ha-1), Rajshahi (1610 kg ha-1), Natore (1596 kg ha-1) and Jashore (1568 kg ha-1)
-1

respectively. The average gross margin was found Tk. 44710 on variable cost basis. Gross margin was highest in Magura
(Tk. 49503 ha-1) followed by Pabna (Tk. 46485 ha-1), Jashore (Tk. 44808 ha-1), Natore (Tk. 44676 ha-1) and Rajshahi
(38076 ha-1) respectively. The average net return was Tk. 40659 ha-1. The net return was highest in Magura (Tk. 46345
ha-1) followed by Pabna (Tk. 41602 ha-1), Natore (Tk. 41299 ha-1), Jashore (Tk. 40540 ha-1) and Rajshahi (33508 ha-1)
respectively. Benefit cost ratio was estimated at 1.87 and 2.95 on full cost and cash cost basis.

Table 2: Profitability of Binamoog-8 cultivation in different location

Study areas
Type Average
Pabna Magura Natore Jashore Rajshahi
Yield (kg ha-1) 1705 1694 1596 1568 1610 1634
-1
Yield (Tk. ha ) 86769 90891 83896 87635 81624 86163
-1
By product (Tk. ha ) 1489 1325 1190 1386 1220 1322
Gross Return (Tk. ha-1) 88258 92216 85086 89021 82844 87485
-1 29823 30711 27590 29877 30613 29723
Total cash cost (Tk. ha )
Total variable cost (Tk.ha-1) 41773 42713 40410 44213 44768 42775
Total Cost (Tk. ha-1) 46656 45871 43787 48481 49336 46826
Gross Margin (Tk. ha-1) 46485 49503 44676 44808 38076 44710
Net Return (Tk./ha) 41602 46345 41299 40540 33508 40659
Benefit Cost Ratio

Full cost basis 1.89 2.01 1.94 1.84 1.68 1.87

Cash cost basis 2.96 3.00 3.08 2.98 2.71 2.95

Technical efficiency of Binamoog-8 farmers

Maximum likelihood estimates of the stochastic frontier and technical inefficiency are represented in Table 3.
The stochastic frontier model considers the variable inputs as human labour, land preparation, seed, fertilizer, irrigation,
organic manure and insecticides cost and socio-economic variables like age, education, experience and farm size are
considered in the inefficiency model.

In table 3 showed that most of the parameters are statistically significant and positive. The empherical result
indicated that the co-efficient of human labour was found positive and significant at 1% level, while that of land
preparation, seed, fertilizer and organic manure were found positive but significant at 10 percent level. The elasticity of
output with respect to human labor, land preparation, seed, fertilizer and organic manure were estimated to be positive
values of 0.080, 0.207, 0.008, 0.287 and 0.224 respectively. It showed that these variables had a significant and positive
impact on Binamoog-8 production. Thereby it can be said that if the human labor, land preparation, seed, fertilizer and
organic manure are increased by one per cent, per hectare yield of Binamoog-8 is estimated to increase by 0.080, 0.207,
0.008, 0.287 and 0.224 per cent respectively. Irrigation and insecticides cost are statistically insignificant and showed
negative relationship with Binamoog-8 production. The coefficients of dummy variables sowing date also positive and
significant at 10% level.

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The estimated coefficient of technical inefficiency model showed that the coefficient of farmers age, education
and farming experience were negative but significant at 1% level which implies that technical inefficiency in mungbean
production decreases with the increases in farmers age, education and farming experience. Coelli and Battese (1996),
Sharif and Dhar (1996), Seyoum et.al. (1998) observed significant positive correlation with education and experience.
2
The coefficient of farm size and training was positive but not significant. The estimated value of variance (σ ) was
significantly different from zero which indicated a good fit and correctness of specified distributional assumption.

Table 3: Maximum likelihood estimates of the stochastic Cobb-Douglas frontier production function and technical
inefficiency model for Binamoog-8
Standard
Independent variables Para-meters Co-efficient T- ratio
error
Stochastic Frontier model
Constant 0 2.558* 0.651 4.070
Human labour (Man-days ha-1) 1 0.080** 0.870 1.700
Land preparation (Tk ha-1) 2 0.207* 0.196 2.267
Seed (Tk ha-1) 3 0.008* 0.002 0.057
Fertilizer (kg ha-1) 4 0.287* 0.061 4.713
Irrigation (Tk. ha-1) 5 -0.006 0.090 -0.505
Organic manure (kg ha-1) 6 0.224* 0.069 3.240
Insecticides (Tk. ha-1) 7 -0.200 0.217 -9.18
Dummy for sowing date 8 0.242* 0.063 3.804
Technical Inefficiency Model
Constant 0 0.154* 0.021 3.254
Age (Years) 1 -0.004** 0.001 -1.645
Education (years of schooling) 2 -0.009** 0.002 -3.461
Experience (years) 3 -0.033** 0.027 -1.205
Farm size (decimal) 4 0.001 0.003 0.431
Dummy for training 5 0.242 0.063 3.804
Variance parameters
Sigma-squared σ2 0.263** 0.053 1.995
Gamma γ 0.935** 0.072 12.90
Log likelihood function 192.64
(Note: ** and * indicate the significant at 1% and 10% level of probability, respectively)

In table 4 showed that about 59% farmers produced outputs which were very close to the maximum frontier output level
(91%–99%). The mean efficiency of the Binamoog-8 producers was 88.5%, which indicates that they were made a
production loss of 11.5% due to inefficiency factors. In other words, they were 11.5% apart from the frontier level.

Table 4: Technical efficiency of Binamoog-8 growers in the study areas

Technical efficiency (%) No. of farmers % of total farmers
71-80 16 8
81-90 66 33
91-99 118 59
Mean efficiency 88.5%
Maximum 99%
Minimum 72%

Major constraints to Binamoog-8 Cultivation

Binamoog-8 is a profitable crop in the study areas. Farmers faced various constraints to Binamoog-8 cultivation.
In table 5, about 94% farmers opined lack of high-quality seed as a top ranked problem of mungbean cultivation. Other
constraints were disease and pest infestation (72%), pod maturity in different times (64%), high price of insecticides
(50%), lack of capital (42%), lack of training (41%) and rainfall during germination period (31%).

Table 5: Major constraints to Binamoog-8 cultivation in the study areas

SL. Percent of farmers’ responded
No Constraints Rank
Pabna Magura Natore Jashore Rajshahi Avg.
1. Lack of high-quality seed 100 97 78 98 99 94 1
2. Disease and pest infestation 77 63 75 66 78 72 2

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3. Pod maturity in different times 69 55 61 70 64 64 3
4. High price of insecticides 48 44 57 48 52 50 4
5. Lack of capital 42 38 46 42 44 42 5
6. Lack of training 28 34 48 37 56 41 6
7. Rainfall during germination
period 24 29 38 28 35 31 7

CONCLUSION
Binamoog-8 production in the study areas is profitable. Mungbean farmers received high return on its
investment. They could increase Binamoog-8 yield by spending more on human labour, land preparation, seed, fertilizer
and organic manure since these inputs had significant and positive impact on yield. About 59% Binamoog-8 farmers
could achieve 88.5% of technical efficiency implying that they could increase mungbean productivity through increasing
their technical efficiencies in many issues, such as age, education and farming experience. Although Binamoog-8 is a
profitable crop, its growers faced different constraints, such as lack of high-quality seed, disease and pest infestation, pod
maturity in different times, high price of insecticides, lack of capital, lack of training and rainfall during germination
period.

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