Saikat Pande; Kazi Mostafa Arif
Volume 10, Issue 2 , February 2023
Abstract
The handloom textile industry is one of Bangladesh's major labor contributing endeavors that provides income and employment opportunities for a sizable section of rural labor. However, in recent years, the handloom textile industry has been experiencing severe competition with the power loom textile ...
Read More
The handloom textile industry is one of Bangladesh's major labor contributing endeavors that provides income and employment opportunities for a sizable section of rural labor. However, in recent years, the handloom textile industry has been experiencing severe competition with the power loom textile industries in terms of technical efficiency, wage discrimination, and profit margin. This study aims to measure the technical efficiency of the handloom textile industry in handloom rich areas of Bangladesh. This study used multistage sampling techniques to collect data from 50 handloom textile industries in the Sirajganj district. The Stochastic Frontier Analysis (SFA) technique was used to assess technical inefficiency and production efficiency. In contrast, the Benefit-Cost Ratio was used to determine the profit margin for handloom textile industries. The results show that the sample means technical efficiency is 79 percent, ranging from 38 to 100 percent. The SFA regression model also indicates that 66 percent of handloom industries have a 0.75–1.00 efficiency score, while 6 percent of the firms operate below 50 percent of technical efficiency. The Benefit-Cost Ratio analysis shows that handloom products are not highly profitable. The study also found that the existing handloom textile industries face high prices of colors and fabrics, lower adoption of technical knowledge, and obstacles to access to credit, all of which affect the production efficiency of handloom industries. With the foremost prospect of this industry, government policies should address the above problems to ensure favorable textile production in the study area.
Economics
Saikat Pande
Abstract
The handloom textile industry, one of the significant labor-contributing industries in Bangladesh, provides income and employment opportunities for a sizable section of rural labor. However, in recent years, the handloom textile industry has been experiencing several problems in its production. The residents ...
Read More
The handloom textile industry, one of the significant labor-contributing industries in Bangladesh, provides income and employment opportunities for a sizable section of rural labor. However, in recent years, the handloom textile industry has been experiencing several problems in its production. The residents of three Upazilas in the Sirajganj district rely directly or indirectly on this sector. This study will examine the issues and opportunities of the handloom industry in three Upazilas of the Sirajganj district in Bangladesh. The district of Sirajganj was chosen as a purposive sample and used the multistage random sampling method of fifty handloom units from twenty villages in Ullapara, Shahajdpur, and Belkuchi Upazila. The Cobb-Douglas production function is used to identify in this case to assess the variables' impact on the Handloom sector's annual income. Labor, input, and education coefficient is significant at 1 percent of the level. On the other hand, capital has negatively impacted the handloom industries and is also not statistically significant. Despite experience positively impacting the handloom weaver's income, it does not influence statistically significant. The estimated capital coefficient of -0.208, and the approximate labor cost is 25.73. Major problems of the handloom industry in the high rate of fabrics and colors. These results suggest that labor is a vital part of the handloom industry and with the posting of workers, handloom output rises as well.
