Profit Maximization of Jute Crop Allocation for Farmers in Bangladesh using the Linear Programming Model.

Publication Date: 11/02/2026

DOI: 10.52589/RJAED-8BFHDHBP


Author(s): Md. Shariful Islam, M. U. Ahammad, Mohammed Forhad Uddin.
Volume/Issue: Volume 5, Issue 1 (2026)
Page No: 13-41
Journal: Research Journal of Agricultural Economics and Development (RJAED)


Abstract:

Jute is one of the most important cash crops in Bangladesh, contributing significantly to the economy and rural livelihoods. This study presents an optimization model to maximize the profit of jute production by allocating land for three different types of jute: White Jute, Tosha Jute and Mesta Jute across two distinct agricultural zones. Using a linear programming approach, the model incorporates key constraints such as land availability, labor, capital, and environmental limitations. The model has been solved using LINGO and optimal area allocations for each jute type are determined. To further enhance practical insights, sensitivity analysis is conducted to assess the impact of changes in labor, capital, and environmental factors on profitability. Results reveal that Tosha Jute is the most profitable crop, with 400 hectares allocated in Zone 1 and 500 hectares in Zone 2, while White and Mesta Jute were not selected due to lower profitability. The maximum profit achieved was BDT 90.9 million, demonstrating the potential of optimization-based planning to increase financial returns for farmers. Among all resources, the water limit emerged as the key binding constraint, fully utilized in both zones, while land, labor and capital showed surplus availability. These findings suggest that sustainable water management and improved irrigation practices are critical for maximizing profitability in jute cultivation and ensuring sustainable production and maximizing economic returns in Bangladesh.

Keywords:

Jute Crop Allocation, Profit Maximization, Linear Programming, Jute Production

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