Cost And Benefit Analysis (CBA) Of Litchi (Litchi Chinensis) Production in Dinajpur District of Bangladesh

Abstract

This research examines the cost benefit analysis and determinant factors of Litchi and litchi in Dinajpur District in Bangladesh. Applying cost analysis and linear regression analysis on data collected from 164 farmers, the study compares the economic viability of the two top profitable crops. The combined production cost of Litchi and litchi was 246,433 BDT ha-1. The litchi has given substantial higher returns with gross income of 555,750 BDT and BCR 2.25 as compared with Litchi. Although Litchi is profitable to produce, the high fixed costs of production including land rent, which comprises 64.4% of the overall cost-still represents a significant challenge to the landless and smallholder farmers. According to regression analysis, education and cultivable land were positively and significantly associated with litchi production result. By contrast, number of HH members and other main sources of household income were negatively related to productivity, suggesting economic strain and resources dilution. The positive effect of income from litchi was found to be marginally significant. Notably, proximity to the local market and age did not significantly influence either. These results indicate a possibility of litchi production being economically more viable than Litchi and demonstrate a policy implication for supporting land access, increasing education, and infrastructure that includes post-harvest measures such as a cold storage and a transport system. Personalized interventions could lead to better profitability and resilience, especially among smallholder farmers. In general, this study adds to the wider literature of sustainable agriculture and rural development in Bangladesh by identifying possible on-farm determinants of farming success in high-value crops.