IRRI’s Perspective on Production Economics and Rice Production systems

Samarendu Mohanty

Head and Senior Economist

International Rice Research Institute

Acknowledgements

• H. Bhandari, IRRI

• Pie Moya, IRRI

• Thelma Paris, IRRI

Program 5: Targeting & Policy4 Product Lines & 12 Products

• Technology Needs• Poverty Dynamics• Consumer

Perceptions

Evaluation

• Information on Agro Ecologies

• Rice Maps: Abiotic& Biotic stress

• Characterization

Targeting• Rice Monitoring• Data• Policy Analysis• Regional

Integration

• Ex Ante• Ex Post

Impact

Policy

Program 2 Program 3

Program 4

Core Activity

Collection of farm household data to:– Identify technology needs of the

farmers

– Understand constraints to adoption

– Analyze adoption patterns including the role of women in technology adoption

– Analyze unintended consequences of technology interventions

– Monitor and evaluate adoption

– Establish a baseline for ex post impact assessment

Data on input, output, prices and costs of rice production and farm household demographics are collected for all surveys

Studies on the rice production systems have been done in several Asian countries

WWW.IRRI.ORG

Accessible online at

Click on “Knowledge”

Click on “Household Survey Database”

Central Luzon Loop

SurveyStarted in 1966/67Every four years2011/12 (latest survey)

7

Bangladesh Panel Data, 1988-Present

Data are available for four different periods:

1987/88 (IRRI-BIDS)1999/00 (IRRI)2003/04 (IRRI)2007/08 (BRAC)

1987/88 Survey

• The benchmark survey was conducted in 1987-88 covering 1231 households – Selected from 62 villages in 57 out of 64 districts

– A random sample of 20 households were drawn from each village.

– Covered all agro ecological zones in Bangladesh.

– Implemented by BIDS and IRRI

9

– demographic characteristics of all householdmembers

– use of all parcels of land owned and operated bythe household

– costs and returns on the cultivation of major crops

– purchase of inputs and the marketing of products

– ownership of non-land assets

employment of working members and earningsfrom non-farm activities, and

– the perception of the households regardingchanges in its economic conditions.

Data collection

Source: Uttam Deb and Alamgir Choudhury

10

High Frequency Data Collection (2009 onwards)

Villages District Remarks

Boikuntapur Thakurgaon Drought

Rasun Simul Bari Kurigram Flood prone

Daricamari Bogra Favorable

Khudiakhali Chuadanda Favorable - Drought

Dakhin Kabirkati Patuakhali Coastal

Paschim Bahadurpur Madaripur Flood prone

Pthordia Narshingdi Favorable

Nishaigonj Mymensingh Flood prone

Bhobanipur Comilla Favorable

Begumpur Chandpur Flood prone

Niamatpur Jhenaidaha Favorable-Drought

Konapara Mymensingh Favorable- Drought

Data collection ModulesData collection modules Frequency of data collection

M1 – Household  census schedule Project beginning (2009)

M2 – General  endowment schedule Annual

M3 – Plot‐list and cropping pattern schedule Every season (3 seasons)

M4 – Employment schedule Every month

M5 – Income and expenditure schedule Every month

M6 – Price schedule Every month

M7 – Rainfall schedule Every day

M8 – Crop cultivation schedule Every season (3 season)

M9 – Livestock schedule Every month

M10 – Health and nutrition Annual

Household Poverty Dynamics During a Commodity Price Spike: Evidence from Bangladesh (forthcoming in Agricultural Economics)

Joseph V. Balagtas, Purdue University; Elanie Cabrera, IRRI; HumnathBhandari, IRRI; Sam Mohanty, IRRI and Mohabub Hossain, BRAC

1988 2000 2004 2008

Sample size 1,238 1,872 1,927 2,010

HH size 5.9 5.4 5.3 4.9

Farm size (ha) 0.62 0.54 0.48 0.47

Nonfarm HH (%) 34 42 39 43

Area under tenancy (%)

22 33 40 14

Ag workers (no.) 1.2 0.9 1.0 0.8

Nonag workers (no.)

0.7 0.9 0.9 0.7

Domesticmigrants (no.)

0.2 0.4 0.4 0.5

Overseas migrants (no.)

0.01 0.1 0.1 0.2

Selected Sample Statistics Summary Findings

Rice production in Asia, 1970‐2010

0

100

200

300

400

500

600

700

1970

1975

1980

1985

1990

1995

2000

2005

2010

Paddy production (million tons)

Income rise in Asia, 1980‐2011

0

1000

2000

3000

4000

5000

6000

Per cap income (US$/cap/yr)

1980 2011

Source: Bhandari, IRRI

Agriculture share of total employment, 1980‐2011

  0

  20

  40

  60

  80

IND VNM CHN MYS JPN

Share of agrilabor (%

 total labor)

1980 2010

Source: Bhandari, IRRI

Changes in primary occupation: BANGLADESH

1988

1988

20002000

2010

2010

0

10

20

30

40

50

60

70

80

Agriculture Non‐agriculture

Source: Bangladesh panel data

Trends in farm size in Asia, 1990‐2005

0.0

1.0

2.0

3.0

4.0

THA PHL IND IDN BGD CHN MMR VNM MYS SKR JPN

Farm

 size (ha/hh)

1990 2005

Source: Bhandari, IRRI

Changes in asset endowments

1988 2000 2010

Natural capital

Farm size (ha/hh) 0.61 0.53 0.48

Irrigated land (%) 25 55 64

Area under tenancy (%) 16 20 33

Human capital

Total worker (no./hh) 1.36 1.43 1.64

No. of migrants (no./hh) 0.26 0.61 0.86

Av. education (yr) 3.2 4.1 5.2

Source: Bangladesh panel data

0.0

0.5

1.0

1.5

2.0

2.5

1966-67 1970-71 1974-75 1979-80 1986-87 1990-91 1994-95 1998-99 2003-04 2007-08 2011-12

Change in Farm Size, Central Luzon, PhHectare

Source: Loop survey

Rural out‐migration in Asia

20

24

28

32

1983 1987 1993

Internal m

igration (% total pop)

0

1

2

3

4

5

1999 2009

Rural out‐migration (% total pop)

India

Vietnam

0

10

20

30

1985

1990

1995

2000

2005

2010

Person per 1000 pop Bangladesh

Source: Bhandari, IRRI

Age of farm household head in Asia

20

30

40

50

60

1988 2000 2004 2008 2011

Age of farm

 HH head (yr)

20

30

40

50

60

70

1980 1990 2003 2011Age of farm

 HH head (yr)

Bangladesh Philippines

Source: Bangladesh panel & Loop survey

Family and hired labor use in rice farming

0

20

40

60

80

100

1988 2004 2008

Labor use (%)

Family Hired

0

20

40

60

80

100

1970 1979 1990 1998 2011

Labor use (%)

Family Hired

Bangladesh Philippines

Source: Bangladesh panel & Loop survey

Increase in wage rate of agricultural labor

0

100

200

300

400

500

BGD IND PHL

Wage rate index (1990=100)

1990

2000

2010

Fertilizer (NPK) use in agriculture, 1970‐2009

0

100

200

300

400

IND VNM PHL THA CHN JPN

Fertilizer use (kg/ha cropland)

1970 2009

Source: Bhandari, IRRI

0

20

40

60

80

100

120

140

WET DRY

Crop year

NITROGEN (N) FERTILIZER USE PER HECTARE, CENTRAL LUZON FARMS, PHIL. 1966-2012

Source: Loop survey

Irrigated rice area, 1970s and 2010s

0

20

40

60

80

100

BGD IND MMR VNM PHL IDN CHN

Irrigated area (%

)

1970s 2010s

Pump irrigation in Bangladesh, 1980‐2010

0

200

400

600

800

1000

1200

1400

1600

1980 1985 1990 1995 2000 2005 2010

Number of pumps (1000 unit)

DTW STW LLP

Distribution of rice production cost, Bangladesh

Seed5%

Fertilizer13%

Pesticide2%

Irrigation11%

Machine0%Animal power

15%

Labor54%

Seed4%

Fertilizer17%

Pesticide3%

Irrigation19%

Machine9%Animal 

power2%

Labor46%

1988 2008

Rice production cost in Asia

0

200

400

600

800

1000

BGD IND VNM PHL THA

Rice production cost (US$/ha)

1990s 2000s 2010s

0

2000

4000

6000

8000

10000

12000

14000

MYS SKR JPN

Rice production cost (US$/ha)

1990s 2000s 2010s

Developing Asia Developed Asia

Women in Rice Farming

Harvesting

Threshing

Transplanting

Women in Rice Farming

Weeding

Changing Role of Women

• Drivers– Migration of male labor

– The adoption of labor-saving technologies and mechanization

– Social and cultural norms regarding female labor

Fertilizer application

Cleaning the dikes

Pest control Pest control

Chi et.al., 2006

Empowering women as

entrepreneurs in transplanting rice

Tamil Nadu, India CSISA project

Opportunities to address the changing gender roles

• Train women as farm managers (on crop/farm management) and as entrepreneurs

• Provide training on non-traditional jobs eg. machinery repair and making spare parts in anticipation of machinery adoption

• The adoption of mechanical transplanters will increase in the future with labor shortages

• Need to explore other opportunities for displaced women workers by organizing and training women to operate and own-for renting out machines

• Develop custom-made equipment/machines for women to address the drudgery and labor efficiency in rice farming

• Employ more women in agro-processing or value adding agriculture-based income generating activities and other livelihood activities in the rural areas e.g increasing crop diversification

Source: Paris, IRRI

Large Rice Field Model in Vietnam

• large fields enough (from 50-500 ha)

• Farmers are voluntary to participate

• Availability of input dealers and enterprises (exporters) to buy farmer product thru contract farming

• Efficiency: (1) Reduced costs of production; (2) Increase rice productivity and quality ; (3) Improve profits for farmers….;

Source: Pham van Du, Department of Crop Production-MARD

Concluding Remarks

• Farming population is declining and aging 

• Labor scarcity is increasing 

• Roles of men and women are changing

• Technology focus: small farms, labor saving,  women & old farmers, new cropping system, etc.