IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v7y2017i12p96-d120345.html
   My bibliography  Save this article

Exploring the Future Potential of Jute in Bangladesh

Author

Listed:
  • Sanzidur Rahman

    () (School of Geography, Earth and Environmental Sciences, University of Plymouth, Plymouth PL4 8AA, UK)

  • Mohammad Mizanul Haque Kazal

    () (Department of Development and Poverty Studies, Sher-e-Bangla Agricultural University, Dhaka 1207, Bangladesh
    These authors contributed equally to this work.)

  • Ismat Ara Begum

    () (Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh
    These authors contributed equally to this work.)

  • Mohammad Jahangir Alam

    () (Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh
    These authors contributed equally to this work.)

Abstract

The study assesses the future potential of the jute sector in Bangladesh by examining its growth performance, international competitiveness, profitability, and production efficiency using national time-series data of over the period 1973–2013 and farm survey data from 289 farmers from two major jute growing areas of Bangladesh. Results revealed that the jute sector has experienced substantial growth in area, production, productivity, prices, and exports. However, productivity has stagnated during the latter 10-year period (2004–2013), while it grew at a rate of 1.3% per annum (p.a.) during the first 31-year period (1973–2003). Only traditional jute production is globally competitive, although financial profitability of white jute is relatively higher (benefit cost ratio = 1.24 and 1.17, respectively). Land, labor, and irrigation are the main productivity drivers for jute. The mean production efficiency of jute is estimated at 75% indicating substantial scope to improve yield by eliminating inefficiency. Marginal farmers are relatively inefficient. Policy implications include investments in research and development, irrigation, and tenurial reform and export protection for white jute in order to revive the sector and boost export earnings.

Suggested Citation

  • Sanzidur Rahman & Mohammad Mizanul Haque Kazal & Ismat Ara Begum & Mohammad Jahangir Alam, 2017. "Exploring the Future Potential of Jute in Bangladesh," Agriculture, MDPI, Open Access Journal, vol. 7(12), pages 1-16, November.
  • Handle: RePEc:gam:jagris:v:7:y:2017:i:12:p:96-:d:120345
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/7/12/96/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2077-0472/7/12/96/
    Download Restriction: no

    References listed on IDEAS

    as
    1. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    2. Rahman, Sanzidur, 2009. "Whether crop diversification is a desired strategy for agricultural growth in Bangladesh?," Food Policy, Elsevier, vol. 34(4), pages 340-349, August.
    3. Shahabuddin, Quazi & Dorosh, Paul A., 2002. "Comparative advantage in Bangladesh crop production," MTID discussion papers 47, International Food Policy Research Institute (IFPRI).
    4. Sanzidur Rahman & Mohammad Mizanul Haque Kazal & Ismat Ara Begum & Mohammad Jahangir Alam, 2016. "Competitiveness, Profitability, Input Demand and Output Supply of Maize Production in Bangladesh," Agriculture, MDPI, Open Access Journal, vol. 6(2), pages 1-14, May.
    5. Tim Coelli & Sanzidur Rahman & Colin Thirtle, 2002. "Technical, Allocative, Cost and Scale Efficiencies in Bangladesh Rice Cultivation: A Non‐parametric Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 607-626, November.
    6. M. Ghaffar Chaudhry & Nighat Naheed Kayani, 1991. "Implicit Taxation of Pakistan's Agriculture: An Analysis of the Commodity and Input Prices," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 30(3), pages 225-242.
    7. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    8. Amarender Reddy, A. & Bantilan, Ma Cynthia S., 2012. "Competitiveness and technical efficiency: Determinants in the groundnut oil sector of India," Food Policy, Elsevier, vol. 37(3), pages 255-263.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Clement Tisdell & Mohammad Alauddin & Md. Abdur Rashid Sarker & Md Anwarul Kabir, 2019. "Agricultural Diversity and Sustainability: General Features and Bangladeshi Illustrations," Sustainability, MDPI, Open Access Journal, vol. 11(21), pages 1-22, October.
    2. Boysen, Nils & Schwerdfeger, Stefan & Weidinger, Felix, 2018. "Scheduling last-mile deliveries with truck-based autonomous robots," European Journal of Operational Research, Elsevier, vol. 271(3), pages 1085-1099.
    3. Jules Ngango & Seung Gyu Kim, 2019. "Assessment of Technical Efficiency and Its Potential Determinants among Small-Scale Coffee Farmers in Rwanda," Agriculture, MDPI, Open Access Journal, vol. 9(7), pages 1-12, July.

    More about this item

    Keywords

    competitiveness; policy analysis matrix (PAM) analysis; profitability; stochastic production frontier; technical efficiency; jute; Bangladesh;

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jagris:v:7:y:2017:i:12:p:96-:d:120345. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (XML Conversion Team). General contact details of provider: https://www.mdpi.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.