An Assessment of the Profitability, Technical Efficiency, and Income Impact of Hybrid and Local Mustard Varieties of Bangladesh

Abstract

Hybrid mustard varieties have become increasingly important in the agriculture-led economy due to their potential for improving productivity, reducing crop losses, and contributing to the economic progress of Bangladesh. The study determines profitability, technical efficiency, the level of espousal of hybrid mustard varieties and assesses the income effect of mustard production. Overall, 150 farmers (90 for hybrid mustard growers and 60 for local mustard growers) were chosen from two upazila from Narsingdi district in Bangladesh. Purposive random sampling technique was utilized to obtain the samples. On average, total cost of production of hybrid and local mustard variety were Tk.70351 ha^-1 and Tk. 56315 ha^-1 , respectively. The average net returns of hybrid and local mustard cultivation were Tk. 22911 ha^-1 and Tk. 11914 ha^-1 respectively. For local and hybrid mustard production, the Benefit Cost Ratio was 1.21 and 1.32, respectively. To determine the factors affecting hybrid mustard production, the probit model was applied. The result indicates that experience, farm size, training, and a significant effect of extension services on adopting hybrid mustard variety. The study mentioned that human labor cost, land preparation cost, fertilizer cost had significantly and positively affected the yield of mustard. Technical efficiency was 93.15% and 90.84% for hybrid and local mustard farmers respectively and mustard productivity could be increased by increasing technical efficiencies in various issues including education, training and farm size. The results from propensity score matching revealed that hybrid mustard adopters had higher household income and yield compared with non-adopters.