Economic Analysis of Rice Production in Bangladesh

The aim of the study is to examine the growth performance and profitability of rice production in Bangladesh using the time series data for the period 1981-82 to 2010-11. The study was based on secondary data. Growth rates of area, production, yield and nominal price of three seasons of rice were estimated by fitting exponential trend function. Growth rates of area which were significantly negative for Aus, Aman that were -4.6 percent and -0.3 percent and positive for Boro rice it was 4.5 percent over the whole period. The growth rates of yield for Aus, Aman and Boro were increased significantly at the rate of 2.2, 1.9 and 1.9 percent respectively during the entire time period. The growth rate of production was significantly negative for Aus rice was 2.4 percent and positive for Aman and Boro rice that were 1.6 and 6.3 percent respectively. There was an upward trend observed in nominal price for Aus, Aman and Boro over the period. The short-run and long-run price elasticity of Aus was 0.010 and 0.210 and short-run and long-run elasticity of Aman and Boro rice were 0.091, 0.112 and 0.051 and 0.395 respectively. The short-run responses in rice production are lower than long-run response as indicated by the higher long-run elasticities. The lagged area variable was highly significant in Aus and Boro rice area response equation. Rainfall in sowing period had significant influences in Aus area response equation. Aman has positive influence with the lagged yield and negative with the irrigated area. Policy related to technological advancement, improving varieties, extension services, fertilizer distribution, high yielding variety seeds and production management research may increase the productivity of food grains in Bangladesh.