Extensive Tobacco Cultivation in Kushtia District of Bangladesh: Changes in Cultivators’ Perception Regarding External Cost
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 6
Abstract
This paper aims at exploring whether tobacco growers receive positive marginal social benefit than the marginal social cost they incur from extensive tobacco cultivation in rural areas of Bangladesh. This study uses primary data collected randomly from 185 tobacco producing families of the study area. Each family is evaluated as a tobacco growing unit. There are few areas of Bangladesh where tobacco is grown in a large scale, among these areas Kushtia is one of the renowned regions. The main purpose of this study is to find whether the farmers actually get benefited by growing tobacco. The study employs Analysis of Variance (ANOVA) model to receive the expected outcome. Besides, both quantitative and qualitative analysis are used to compare Marginal Social Benefit (MSB) and Marginal Social Cost (MSC) of the tobacco growers. The findings from the study reveal that though the tobacco growers have some incentives of growing tobacco by a huge margin the total production process assumes a considerable amount of external cost such as environmental protection cost, loss of fertility of the soil and healthcare cost. Apart from this, the results also show that one of the main factors that affects the overall production level of tobacco is untimely precipitation. Additionally, farmers become discouraged if they are not provided with flexible loan facilities to produce tobacco from tobacco manufacturing companies.
Authors and Affiliations
Md. Tanvir Ahmed
Keywords
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- EP ID EP429974
- DOI 10.9790/5933-0906030105.
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