Department of Agricultural Economics, EXIM Bank Agricultural University, Chapainawabgong-6300, Bangladesh
Online published on 5 December, 2018.
This article analyzes the effects of agricultural policies on production of horticultural crops in Bangladesh using the Policy Analysis Matrix (PAM). The estimated domestic resource cost demonstrates that Bangladesh has a comparative advantage in producing pineapple and tuberose. These crops are highly efficient for production and exports. The PAM analysis indicates that, higher profitability is encouraging to production and exports of horticultural crops. Nominal protection coefficient on tradable output indicates that policies are decreasing the market price and are lower than the world price. However, nominal protection coefficient on tradable inputs shows that policies are required to reduce input costs. On the whole, production of horticultural is not much supported by policy measures.