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Abstract

The study estimated the rates of returns to investment on research and development of summer onion in Bangladesh. The Economic Surplus Model with ex-post analysis using secondary data was used to determine the returns to investment and its distribution between the production and consumption. Several discounting techniques were also used to assess the impact of summer onion research. The results revealed that the growth of area and production of onion increased manifolds due to farm level adoption of summer onion. The summer onion adoption rate was found increasing trend over the period. The yield of summer onion was 57.04% higher than the local variety. The internal rate of return (IRR), net present value (NPV), and benefit cost ratio (BCR) were estimated to be 25%, Tk.35.29 million and 3.09 respectively. Sensitivity analysis revealed that under various assumptions IRR ranged from 20 to 41%, NPV from Tk.18.37 to Tk.64.05 million, and BCR from 2.31 to 5.95. The results indicated that investment in research and development of summer onion was a good investment.

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