A Half-yearly Peer Reviewed Journal of Bangladesh Forest Research Institute

ISSN - Print: 1021-3279 | Online: -

Agroforestry is not a new concept in Bangladesh. This concept has been practising
in this country for a long time. A case study of financial analysis on agroforestry
research conducted at Ichamati Research Centre under Chittagong district was done.
Tire financial analysis of both the tree crops and agricultural crops has been done
separately and combinedly. The trees were considered as fuelwood with six years
rotation. In both the cases, tire result is found to be negative. The present worth of
benefit is Tk. 12,610 (US$1 = Tk. 40/-) and the present worth of cost is Tk. 44,947. The
net present worth is Tk. 32,337 with a benefit-cost ratio of 0.28. The agroforestry trial
would, however, be profitable if 18 years rotation of the trees with ploe values and
other intangible benefit are considered.


The Community Forestry Project, undertaken in 1981 was the first governmentinitiated
and large-scale participatory forestry management programme in Bangladesh.
Under this project the participants were promised 50 percent share from the sales
proceeds of final tree harvest in addition to 100 percent of all other benefits generated .
from agricultural crops, thinning materials and pruning. In 1993 five agroforestry plots,
each having an area of 1.21 hectares of land were harvested at Madhyapara, Dinajpur.
Although rotation was planned for a period of seven years trees were actually felled one
year later. It has been the country’s first logged-over area under participatory approach.
Half of the sales proceeds was distributed to the participants. This example inspired both
the participants and the Forest Department.
Financial viability of the system has been explained in terms of internal rate of
return, benefit-cost ratio and present net worth under three situations, viz. a) financial
viability of the whole system, b) financial gain of the participants, and c) financial gain
of the Forest Department. While the system as a whole is found to be highly prospective,
the results also show that the benefits generated to both the participants and the Forest
Department are also much encouraging. A sensitivity analysis allowing probable variations
in cost and benefits reveals no financial risk of the system under any criteria. Social
impacts of the project and some problems have been pointed out.

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