Reasons_for_Cultivating_Tobacco_&_Paddy_in_Kushtia_&_Rangpur__an_Economical_Overview

Course Title: Management & Organizational Behavior Topics Reasons for cultivating Tobacco & Paddy in Kushtia & Rangpur: An Economical overview Introduction On the global scale, Bangladesh ranks 21st in tobacco growing country. With a total production of more than 38,000 metric tons of leaf, Bangladesh accounts for about 0.4% of the total volume of tobacco produced in the world. Tobacco contributes less than 0.0 1% to the GDP (Gross Domestic Product) of Bangladesh. In terms of employment, tobacco accounts for about 0.6% of the agricultural labor force and less than 0.5% of the total labor force. Thus, tobacco does not seem to occupy an important position in the macro economy of Bangladesh. Over the past two decades from the early 1980s to the late 1990s, Bangladesh witnessed negative growth in tobacco acreage and tobacco production. However, in the 1990s, the decline in acreage has not seen a commensurate decline in production, most ostensibly because of an increase in the yield rate. At the regional level, particularly in the two tobacco dominant districts of Rangpur and Kushtia, the scenario appears somewhat mixed. The 1980s saw a considerable increase in the tobacco acreage in Rangpur while in Kushtia there was a drastic decline. The situation reversed in the 1990s with tobacco acreage declining in Rangpur and increasing at a phenomenal rate of 5% in Kushtia. From a declining growth in yield in the 1980s, Kushtia registered a tremendous increase in yield in the 1990s. In Rangpur, however, yield rates remained negative in both the decades. The prime reason behind these occurrences has been the active operation of a number of tobacco companies in Kushtia, including the largest in the country, namely British American Tobacco Bangladesh (BATB). BATB has gradually reduced its operations in Rangpur. About Kushtia Kushtia is the name of a district in the Khulna administrative division of western Bangladesh. Kushtia has existed since the inception of Bangladesh. Geography Kushtia District has an area of 1621.15 square kilometers and is bounded by Rajshahi, Natore, Pabna districts to the North, by Chuadanga, Jhenaidah districts to the South, by Rajbari District to the East, and by West Bengal and Meherpur District to the West. Ganges, Gôrai, Mathabhanga, Kaligônga, and Kumar are the main rivers flowing through the district. The average high temperature is 37.8°C and the average low is 11.2°C. Annual rainfall averages 1,467 millimeters. Economy Kushtia has become the country's centre for tobacco manufacturing, as the local weather allows the production of Virginia Tobacco. Agriculture of Kushtia: Tobacco The main corp. In Bangladesh Flue Cured Tobacco started to grow from 1968 on experimental basis in Kushtia district. After 6 years of extensive fieldwork and grower’s participation, Bangladesh became self sufficiency of tobacco in terms of volume. In Kushtia NC-95 variety is grown for long time and yield is about 500 to 550 kilo per acre. The tobacco is usually lemon to lemon orange color, thin to medium bodied, pliable and soft nature, low to low medium nicotine and medium sugars. The tobacco of Kushtia region is generally considered as good quality neutral filler. An American variety K326 is grown in Meherpur, Jhenaidah and part of Kushtia in North West part of the Bangladesh. This tobacco has medium to high nicotine, orange to mahogony color and has medium sugars. In terms of quality, this tobacco is considered as ripe, neutral filler to semiflavour tobacco. It has distinct taste and flavor, physical appearance giving it different identify for improvement of Smoke quality of Cigarette. The volume of flue-cured production is given below (Figure in million): |  |  |2004 |2005 |2006 | | | |Area(Acres) |13276 |Hector | | |Kushtia |Production(M. Ton) |21242 |M.Tons | | | |Price(Quintal-Tk) | |taka | | | | | | | | |Rangpur | | | | | | |Area |6703 |Hector | | | |Prodn |9953 |M.Tons | | | |Price | |taka | |Paddy |Kushtia | |2008-09 |2009-10 | | | | |Area |58315 |57020 |Hctor | | | |prodn |590260 |551562 |M.Ton | | | |Price | | |Taka | | |Rangpur | | | | | | | |Area |90560 |130150 |Acre | | | |Prodn |480000 |515940 |M.Ton | | | |Price | | |Taka | On the other hand, in Kushtia farmers are cultivating Tobacco more than any other crops. Though this year they faced huge loss as Tobacco companies didn’t keeps their word as they promised to pay farmers. ----------------------- Term Paper On Micro Economics Course Name: Micro Economics Course No. 508 Section: S Date of Submission: 05/05/2010 Prepared for: Prof. Dr. Md. Baqui Khalily Course instructor Dept. of Business Administration United International University Prepared By: ID# 112093020 SCHOOOL OF BUSINESS UNITED INTERNATIONAL UNIVERSITY