In Bangladesh economy, the fisheries sub-sector contributes 8.01 percent of GDP (Gross Domestic Product) and 120 per cent of export earnings of the country. In 1988/89, Bangladesh earned TK4, 800.0 million from exporting shrimps (Islam 1990). In terms offood value, its contribution is about 80.0 per cent of the nations's animal portein intake. It is also agrued that at least 10 million people or about 1 1.6 per cent of the total population of this country directly or indirectly earn their livelihood from fisheries related activities (BBS 1989).

Bangladesh is perhaps a rich country in terms of inland fisheries cultivation. Fresh water fishes, in fact, account for about 720 per cent while marine fishes account for 28.0 percent of total fish catch in this country. Shrimp, among all fishes, plays an important role in the economy considering foreign exchange earnings and employment opportunities of the country. However, giant tiger shrimp (Bagda Chingri), amongall species of shrimps, is widely cultivated in Bangladesh. Islam (1990) pointed out that the per hectare (ha) yield of shrimp in Bangladesh is the lowest (100 kg/ha), among the shrimp producing countries of the world. This indicates that the per hectare yield of shrimp can possibly be increased tremendously in this country if the scientific method of production is followed. Despite the lower per hectare yield, some farmers are still making profits while others are incurring loss from shrimp farming, more particularly, in the district of Satkhira, Khulna and Bagherhat. It may be noted here that shrimp can also be cultivated in other coastal districts of Bangladesh. Since a few hard data arc available on economics of shrimp farming, farmers have very little knowledge about the prospect as well as the profitability of shrimp farming. The government of Bandladesh, on the other hand, has decided to earn Tk 5,760 million by exporting frozen foods mostly shrimp in thc current financial year (1990/91). This means that if extensive and/or intensive methods of shrimp cultivation are followcd, the country would probably be ablc to earn a huge amount of forcign currency by exporting shrimps. In othcr words, shrimp plays a vital role in thc overall cconomic development of the country. No systcmatic economic study has yet bccn conducted on shrimp cultivation, more espccially taking into account thc real world situation. This study is, thercforc, dcsigned to havc answer ol" Department of Agricultural Economics. Bangladesh Agricultural University. Bangladesh.