COMPREHENSIVE ECONOMIC EVALUATION OF POTATO FARMING IN BAGLUNG, NEPAL: PRODUCTIVITY, PROFITABILITY, AND RESOURCE USE EFFICIENCY

Author:
Pradeep Kandel, Yagya Raj Khanal, Bibek Magrati, Nisan Poudel, Narayan Dhakal

Doi: 10.26480/egnes.01.2024.59.68

This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

This paper intends to analyze the production and economics of potatoes in Baglung district. The study used a representative sample size of 106 individuals from all PMAMP potato zones. Household surveys, focus group discussions, key informant interviews, and a variety of secondary sources of data were among the techniques used to collect the data. The data were analyzed using descriptive statistical tools, the Cobb-Douglas production function, benefit-cost ratio analysis, and gross margin analysis. An indexing/scaling method was applied to the problems that were identified. The profitability of potato production was highlighted by economic analysis, which showed an average variable cost of production of NRs. 213,777.47 per hectare, gross returns of NRs. NRs. 271,392 per hectare, and a gross margin of NRs. 57,614.58 per hectare with a BCR of 1.27. An analysis of the Cobb-Douglas production function showed a significant positive relationship between various factors and total income. A return to scale value of 1.24 was found in the study, indicating increasing returns on potato production in the research area. The cost of intercultural operations, harvesting, manure, and seeds were found to be underutilized and required to be increased, while the cost of overusing resources for land preparation needed to be decreased for optimal distribution, in accordance to the resource use efficiency analysis. Disease and pests emerged as severe problems, with late blight and red ants being predominant threats. The research demonstrated that potato growing is a profitable and potentially viable agricultural enterprise in the study area. Consequently, it is imperative for all concerned stakeholders to collaborate in efforts to enhance production and profitability.

Pages 59-68
Year 2024
Issue 1
Volume 3