Business Rationale for Investment on Power Operated Maize Sheller
in Bangladesh
Authors
Swapan K Roy
Mike Albu
Abdur Rob
Abstract
A study was carried out to investigate the investment of a selected agro-machinery power
operated Maize Sheller in the course of mechanization of Bangladesh. The analysis considers
different types of Maize Sheller, and inter-regional differences in agro-economic factors that
influence the business rationale for investment. Maize Shellers are increasingly needed to
serve demand from poultry sector because manual shelling is very laborious. Comparing with
manual shelling, results indicate that power operated Maize Shellers look like a wise
investment (5 – 8 acres for 25% internal rate of return or IRR). However, it makes economic
sense to operate shellers at higher capacities, and along with the high capital cost (Tk1 18,000
– 22,000) to save large numbers of labours to farmers and maize traders. Therefore, power
operated Maize Sheller can able to overcome the shortage of expensive labour during peak
harvesting season.