Reasons for Cultivating Tobacco & Paddy in Kushtia & Rangpur: an Economical Overview

Course Title: Management & Organizational Behavior


Reasons for cultivating Tobacco & Paddy in Kushtia & Rangpur:
An Economical overview

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...