Financial and Economic Analyses of Integrated Rice Processing Technology in an Agrarian Community in Mymensingh District

This study surveyed 100 farmers of Fulbaria upazila of Mymensingh district from four groups namely; Traditional farm-30, Semi-modern-I: farm-30, Semi-modernII: farm-30, and Modern farm-10 for paddy processing system. Moreover, data on 30-power thresher, one STR-1 dryer and one mechanical reaper operation were investigated to fulfill the objectives of the study. The survey was conducted during January to June 2005 and January to June, 2006 covering two subsequent management both aman and boro season. Partial budgeting technique was applied to estimate the economic benefit to the users and project appraisal technique was adopted to conclude the performance of the three types of devices in terms BCR, NPV and IRR. Two third of the user and owners were 31-57 years of old and 40% of the owner and users had secondary level of education. Eighty percent of the owners were engaged primarily in agriculture and 50% of them occupied in offfarm employment. Semi-modern farms had the large farms compare to traditional farm. About 75% income of the users came from agricultural source while it was 36% for the power thresher owners. A significant portion of the income of owners came from off-farm activities. A net change of rice income Taka 4250 per hectare was observed due to introduction of mechanical reaper for harvesting paddy. The users those who used all the processing technologies earned an additional Taka 8200 per hectare. Those who were already used the power thresher but undertaken mechanical dryer earned an amount of Taka 1889 per hectare. Even those who were already used the power thresher but undertaken mechanical reaper earned an amount of Taka 2520 per hectare. The cost of harvesting, threshing and drying per quintal were respectively Taka 8.89, Taka 23.25 and Taka 35.24. It was observed that NPV of the power thresher and reaper in existing condition were Taka 42441 and 3006 while the mechanical dryer (Taka -1503) indicating the loss of the investment. The average IRR of power thresher and reaper was 89% and 48% while the IRR of mechanical dryer is negative (-2). In view of these circumstances, the financial analysis showed that power thresher and mechanical dryer was highly profitable from the viewpoint of individual investors. A series of problems were identified and suggested for policy guidelines.