Abstract
This study was an attempt to quantify the returns to investment in potato research and their distribution between producers and consumers in High Concentration Region (HCR), in Medium Concentration Region (MCR), in Low Concentration Region (LCR) and for the whole Country over the period 1981 to 1998. The model used for this study is the one developed by Akino and Hayami (1995) based on the economic surplus approach. Several discounting techniques were used to assess the efficiency of potato research. The results showed that one Taka invested in potato research and extension generated an average return of Taka 4.10 in High Concentration Region (HCR), Taka. 2.11 in Medium Concentration Region (MCR), Taka.1.62 in Low Concentration Region (LCR) and Taka 3.06 for Bangladesh. The internal rate of return (IRR) to potato research and extension was calculated to be 82.1% in High Concentration Region (HCR), 59.1% in Medium Concentration Region (MCR), 48.6% in Low Concentration Region (LCR) and 53.3% for Bangladesh The results indicated that public investment in potato research and extension in Bangladesh was highly profitable because expected rates of return from other public investment activities were generally 10-15 percent per year and interest rates in the Bangladeshi Capital market have been 10-15 percent in nominal terms. The results also showed that the consumers were beneficiaries of the research and producers were losers.Sensitivity analysis revealed that IRR of the programme ranged from 66.0% to 96.3% in High Concentration Region (HCR), 38.9% to 74.6% in Medium Concentration Region (MCR), 21.9% to 66.6% in Low Concentration Region (LCR) and 34.8% to 67.7%) in Bangladesh. The BCR ranged from 2.86 to 5.48 in High Concentration Region (HCR), 1.49 to 2.79 in Medium Concentration. Region (MCR), 1.17 to 2.11 in Low Concentration Region (LCR) and 1.72 to 5.41 in Bangladesh. The net present values (NPV) were estimated at Tk. 2402.59 to Tk. 5861.26 million in High Concentration Region (HCR), Tk. 367.97 to Tk. 1490.94 million in Medium Concentration Region (MCR), Tk. 39.10 to Tk. 382.01 million in Low Concentration Region (LCR) and Tk. 2038.00 to Tk. 8514.07 millions for Bangladesh. The results indicated that the funding on potato research and extension would be a good investment.