Profitability and Comparative Advantage of Groundnut Production in Some Selected Areas of Bangladesh

The present study was conducted to estimate the profitability and comparative advantages of groundnut production in Bangladesh. Primary data were used in this study, where a total of 384 randomly selected farm surveys was conducted in Kishoreganj, Panchagarh and Faridpur districts using an interview schedule. Descriptive statistics, domestic resource cost (DRC) and profitability model were used to analyze the collected data. The study revealed that the total cost of production was Tk. 83,490 per hectare where 34% was fixed costs and 66% was variable costs. The net profit of groundnut production was about Tk. 84,748. The benefit-cost ratio (BCR) was highest in Kishoreganj (2.02), whereas lowest in Faridpur (1.97). The average BCR of all districts was 2.01, indicating that groundnut cultivation in Bangladesh are profitable. The DRC of groundnut production was the highest in Kishoreganj (0.42), followed by Faridpur (0.37) and Panchagarh (0.34) districts. The average DRC of all districts was 0.35 which implies that Bangladesh has a comparative advantage in producing groundnut. In this study, production, credit and marketing problems have been listed which will help to formulate appropriate policy by stakeholders, researchers and policy makers for further improvement of groundnut production in Bangladesh.