Study on Cost and Return of Kenaf Fibre (Hibiscus cannabinus L.) Production at Farm Level in Different Areas of Bangladesh

Abstract

This study examined the farm-level costs and returns of kenaf fibre (Hibiscus cannabinus L.) production in five purposively selected districts of Bangladesh: Kishoreganj, Cumilla, Brahmanbaria, Rangpur and Kurigram. Primary data were collected during the 2022 cropping season from 100 kenaf farmers, with 20 respondents from each location, using pre-tested questionnaires. Information covered input use, variable and fixed costs, fibre and stick yields, output prices and returns. Data were analysed using cost and return analysis, break-even analysis and benefit-cost ratio (BCR) estimation. Average total variable cost was Tk. 75,948 ha⁻¹, and human labour was the largest cost component, accounting for approximately 70% of variable costs. Average total cost was Tk. 1,12,478 ha⁻¹, with Kishoreganj recording the highest total cost (Tk. 1,19,275 ha⁻¹), mainly due to higher labour and input expenses. Average fibre yield was 2,892 kg ha⁻¹, ranging from 2,470 kg ha⁻¹ in Brahmanbaria to 3,306 kg ha⁻¹ in Kishoreganj. Average stick yield was 4,949 kg ha⁻¹. Average gross return and gross margin over total variable cost were Tk. 2,00,316 ha⁻¹ and Tk. 1,24,367 ha⁻¹, respectively. The average break-even price and yield were Tk. 34.08 kg⁻¹ and 1,853 kg ha⁻¹, respectively. Average BCR on a total variable cost basis was 2.64, with Kurigram and Kishoreganj showing the highest values. The results indicate that kenaf fibre production was economically viable in the surveyed areas.