Handloom, a traditional cottage industry in Bangladesh, has been contributing significantly to the rural economy of Bangladesh in terms of employment generation and income enhancement. In Bangladesh, handloom weaving activity is considered to be a marginally profitable business compared to other weaving options as well as other occupations. Therefore, the present study emphasizes on analyzing the profitability of handloom weaving units operating in Tangail district, a handloom concentrated region in Bangladesh. To this end, primary data of 53 handloom weaving units have been collected from two Upazilas of this district. From profitability analysis, the study finds that handloom weaving activity in the study area is still profitable albeit marginally. A disaggregated analysis revealed that small scale handloom units earn higher profit per loom compared to single units, medium scale units and large scale units. Contrarily, rate of return earned by large scale units is higher than that by other types of units. It is also found that handloom units, which produce higher value products earn more profit per loom than those producing lower value products. On the contrary, rate of return is lower in case of higher value products than that in case of lower value products. Extent of using family labor and economy of scale effect may have contributed to yield such differences.
Bangladesh Handloom Industry, Profitability, Rate of Return