Economic impacts of rice research and extension in Bangladesh

Rice is a staple food for 170 million people in Bangladesh, providing food and maintaining food security. In the last decade, Bangladesh has nearly reached a self- sufficiency threshold in rice production due to the adoption of modern high-yielding varieties. Since 1961, government investments in rice research and extension programs have led to the development of 139 high-yielding varieties. Organizations like the International Rice Research Institute (IRRI) and the Department of Agricultural Extension (DAE) have played key roles in capacity building and dissemination of these varieties. However, factors like population growth, declining arable land, and climatic challenges such as floods, droughts, and salinity intrusion require Bangladesh to import approximately 1.5 million tons of rice annually to meet the growing demand. This study aimed to evaluate the economic impacts of rice research and extension programs in Bangladesh, focusing on factors influencing the adoption of modern Boro rice cultivars, estimating social benefits, and determining the returns on investment. The research, based on data from 510 Boro rice farmers analyzed through Tobit regression and descriptive statistics, revealed that education, farm size, access to credit, extension services, training, and farmer-based organizations positively influenced the adoption of modern rice varieties. However, age, distance from extension offices, and NPK fertilizer deficiencies were identified as negative but insignificant factors. An economic surplus approach (ESA) showed that rice research from 1971 to 2021 generated Taka 3,721.51 billion in social benefits in a closed-economy scenario, with Aman rice providing the highest contribution. Yet, poor price elasticity of demand caused producers to lose out while consumers benefited. In an open-economy scenario, rice research saved USD 104.602 billion in foreign exchange, with Boro rice accounting for USD 39.74 billion. The study highlights the substantial returns on investment in rice research, with a net present value (NPV) of Taka 3,538.76 billion, an internal rate of return (IRR) of 68%, and a benefit-cost ratio (BCR) of 20. It recommends improving extension services, subsidized fertilizers, and access to modern seeds while emphasizing increased public investment in rice research. Despite high returns, underinvestment remains prevalent, prompting the study to urge stakeholders to allocate more resources for sustained production growth.

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