Md. Shah Kamal¹, Md. Arshad Ali², Md. Ferdous Alam³

¹Department of Agricultural Finance, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh
²Department of Entomology, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh
³Department of Agricultural Finance, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

The present study was aimed at assessing the loan use, repayment and profitability of banana cultivation under bank loan. For this purpose, 60 loanee farmers were selected from four villages of Shibgong upazila in Bogra district. The empirical magnitudes of the variables were mean, percentage and ratio, cost and return of banana cultivation was made. Apart from this, some tabular analysis was also done to achieve the objectives of the study. The major findings of this study revealed that banana cultivation under the institutional loan was a profitable business. It was estimated that average annual total cost of production of banana was Tk. 34553.33, while gross return and net returns per farm were Tk. 127533.33 and Tk. 92980.00 respectively. The overall benefit cost ratio of banana farming came out to 3.69 indicating that one Taka investment resulted in a net benefit of Tk. 2.69. The findings also show that scientific uses of inputs have increased the production of bananas. The credit aspects of the study indicate that Rajshahi Krishi Unnayan Bank (RAKUB) has greater contribution as financing agency to banana production than other institutional sources of credit. But it is clear that the banana producers got credit as a part of operating capital which was not sufficient to them. Most of the credit amount (78.22%) was utilized for farming purposes. Rate of repayment was fully satisfactory (100%). RAKUB credit programme benefited the credit receivers in respect of increasing income, spending capacity decision making power and social status.

Key words: Credit, loan, banana cultivation, cost-benefit analysis, Bangladesh.

Corresponding author. Tel.: +8801755593724
E-mail address: pannabogra@yahoo.com (MS Kamal)

How to cite this article: MS Kamal, MA Ali and MF Alam (2015). Cost and return analysis of banana cultivation under institutional loan in Bogra, Bangladesh. International Journal of Natural and Social Sciences, 2(1): 19-27.