Determination of major influential factors impacting farm returns and total productivity of rice in Myanmar

Abstract

On the determination of net farm returns on rice production, seasonal price seems to be an important factor in Myanmar. The achievement of high income is partially offset by low seasonal price. Under the same level of yield received from rice production, the farmers who can access the higher price obtained more profit. In the present rice production system, the total productivity is mainly being impacted by increased cropping intensity and the yield per unit area. Although the growth rate of yield seems to be impressive in the moment, there has been much potential to obtain much more yield by using essential agricultural inputs. The effect of inputs used doesn't show any evidence on total productivity of rice. Especially, the utilization of chemical fertilizer and the effect of loans distribution are not likely to be efficient to obtain higher productivity. Since the analyses suggest that both the price elasticity of demand and the income elasticity of demand are inelastic, it is reasonable to assume that rice is normal good in Myanmar and thus demand is not very sensitive to income changes. Moreover, the farmers would achieve higher revenue if the price rises to some extent.