Profitability and comparative economic analysis of hybrid and local cotton cultivation in Kushtia district, Bangladesh

Abstract

Cotton plays a key role in the national economy, generating direct and indirect employment in the Agricultural and Industrial sectors. The textile and clothing industries constitute Bangladesh's economy's most significant manufacturing sub-section. This study analyzes the profitability and economic feasibility of hybrid and indigenous cotton growing in the Kushtia district of Bangladesh, a substantial area for cotton production. The analysis employs a structured survey of 60 smallholder farmers;30 growing hybrid varieties and 30 growing local types to assess financial outcomes via gross return, gross margin, net return, and benefit-cost ratio (BCR). The findings indicate that hybrid cotton production has much greater economic returns, with a gross return of Tk. 455,000 per hectare and a benefit-cost ratio (BCR) of 2.18, in contrast to Tk. 340,500 and a BCR of 1.65 for local varieties. Although hybrid farming incurs marginally elevated total expenses (Tk. 208,400 compared to Tk. 205,846), its enhanced yield and reduced input inefficiencies result in superior profitability. Research underscores the capacity of hybrid cotton to augment rural income, while advocating investment in research, training, and extension services to facilitate equitable and environmentally sustainable adoption. These findings are crucial for policymakers seeking to enhance cotton sector production and diminish Bangladesh’s reliance on cotton imports.