Development Compilation ISSN 2072-3334 Volume 09, Number 01, Pp. 63-72, July 2013 COST-BENEFIT ANALYSIS OF HANDLOOM WEAVING INDUSTRY IN KUMARKHALI UPAZILA OF KUSHTIA DISTRICT, BANGLADESH Md. Khairul Islam 1 Md. Elias Hossain 2 Bikash Chandra Ghosh 3 Abstract: The Handloom industry is the biggest and the most important cottage industry of Bangladesh. It plays important role in the economy of Bangladesh and on the livelihood of the rural people. The present study is an attempt to analyze the cost-benefit of handloom weavers operating in Kumarkhali Upazila of Kushtia District. The study is mainly based on primary data. The data used in this study were collected through structured questionnaire from handloom industry owners in the study area. A total of 57 handloom units were randomly selected for the study. Collected data have been analyzed using mathematical and statistical techniques. The cost-benefit analysis approach enabled us to assess the profitability of the handloom industries. The major findings of the study show that handloom weaving activity is profitable and per-loom profit for small scale and large scale units is higher than that for the medium scale units. Keywords: Handloom, Cost-benefit, Profitability, Bangladesh. Introduction The small and cottage industries are playing significant role to reduce poverty by increasing households’ income and generating employment in Bangladesh. Among all small and cottage industries handloom has occupied the most important position and historically it has got its predominance and heritages in Bangladesh. The tradition of weaving cloth by hand constitutes one of the richest aspects of Bangladesh culture and heritage. The level of artistry and intricacy achieved in handloom fabrics are unparallel and unique. In the early 17th century the handloom sector of the Indian sub-continent and more particularly of the areas presently comprising Bangladesh gained a high degree of efficiently for producing quality product. The products were highly praised and admired throughout the world and use to be expected all over the world. It provides Sharee, Lungi, Bedsheet, Wrapper, Gumchha and others. The handloom industry is the largest cottage industry in Bangladesh. It has an important role to play in the face of growing unemployment in our country and has high significance in rural development. Handloom sector in Bangladesh consists of more than 0.183 million units with 0.505 million looms and about 1 million weavers of which about 50% are female worker. A manpower of about one million weavers, dyers, hand spinners, 1 Researcher, Department of Economics, Rajshahi University-6205, Bangladesh. 2 Professor, Department of Economics, Rajshahi University-6205, Bangladesh. 3 Lecturer, Department of Economics, Pabna University of Science and Technology, Bangladesh.