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Abstract

The study examined the profitability of Low Lift Pump (LLPs) and income influencing factors of the owners and users of LLP. A purposive random sampling technique was used for collecting primary data from 74 LLP users and 30 LLP owners from January to March, 2010 through two sets of pre-tested questionnaires. Descriptive as well as statistical techniques were used in the study. Three discounting measures such as: BCR, NPV and IRR were selected for financial analysis taking 11 percent market interest rate (i.e. opportunity cost of the capital). BCR was 1.20, NPV was Tk. 35,673 and IRR was 47 percent from financial point of view which indicate LLP was a profitable business. Sensibility analysis also showed positive results when considering either O&M cost increased or gross return decreased by 10 percent. Crop and LLP machine were found main income source for the farmers and LLP owners respectively. The service, business and other family member’s income were found to be significant factors influencing the farm income.

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