Economic Analysis of Potato Basic Seed Production Under Contract Farming in Kavrepalanchok, Nepal

Kumar Bolakhe; Krishna Hari Dhakal; Sabin Nepal; Rachana Dahal

doi:doi:10.11648/j.ijae.20220701.12

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Economic Analysis of Potato Basic Seed Production Under Contract Farming in Kavrepalanchok, Nepal

Kumar Bolakhe, Krishna Hari Dhakal, Sabin Nepal, Rachana Dahal

Published in International Journal of Agricultural Economics (Volume 7, Issue 1)

Received: 24 December 2021 Accepted: 10 January 2022 Published: 21 January 2022

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Abstract

In Nepal, potato basic seed production under contract farming is at the initial phase. However, pre-basic seed potatoes were produced in Nepal since 1989/90, production of the basic seed has been relatively low, despite the government's lucrative subsidy on the price of pre-basic seed. There have been very limited studies on the production and economics of potato-basic seed under contract farming. This study examines the cost of production, resources use efficiency, return to scale, and various problem associated with the production of basic seed under contract farming in Kavrepalanchok, Nepal. The authors used the Cobb Douglas production function to explore the technological relationship between inputs and outputs. As well as to estimate and analyze the return to scale. They used a scaling technique to construct an index for prioritizing the problems of potato seed production under contract farming as per farmers' perception. The authors found the cost of basic-potato seed production per 500m² areas under contract farming as Rs. 99129.0064. The high cost of production is due to the higher cost of pre-basic seed. They found the gross return from seed production as Rs. 171547.2 per 500m² areas and the Benefit-cost ratio as 1.72. Similarly, they found positive regression coefficients for seed cost and organic manure which is significant at 1% level and negative regression coefficients for human labor which is significant at 5% level. They observed the overutilization of inputs in potato seed production under contracting farming, which was primarily due to the restrictions impeached by the contract agencies on the contract farmers. The authors found that unavailability of pre-basic seed in required quantity as the major problem faced by the farmers of the study area. A comparative study of the seed production with contract and without a contract, may illustrate the better scenario of the study area. Only a few studies have examined the economics of seed production under contract farming in developing countries. The authors’ findings suggest that productivity and profitability can be maximized if a proper allocation of the resources and existing problems of irrigation, insect.

Published in	International Journal of Agricultural Economics (Volume 7, Issue 1)
DOI	10.11648/j.ijae.20220701.12
Page(s)	4-10
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Cost, Economics, Potato, Production, Production Function

References

[1]	S. Thomas-Sharmaa et al, "Seed degeneration in potato: the need for an integrated seed health strategy to mitigate the problem in developing countries.," Plant Pathology (2015) Doi: 10.1111/ppa.12439.
[2]	DADO, Sindhupalchok, "Potato Seed Tuber Production Techniques mannual," District Agriculture Development Office, Sindhupalchowk.
[3]	Binesh M. Sakha, Gyan P. Rai, Shambhu P. Dhital and Ram B. Nepal, "Disease-free Pre-Basic Seed Potato Production through Tissue Culture in Nepal," Nepal Agric. Res. J. Vol. 8, 2007.
[4]	Kumar, Anjani et al, "Impact of Contract Farming on Profits and Yield of Smallholder Farms in Nepal: An Evidence from Lentil Cultivation," in Agricultural and Applied Economics Association (AAEA) > Agricultural and Applied Economics Association (AAEA) Conferences, Boston, Massachusetts, 2016.
[5]	D. Gujrati, Basic Econometrics (4th ed.), Singapore: McGraw- Hill., 2003.
[6]	Timsina, K., Kafle, K. & Sapkota, S., "Economics of potato (Solanum tuberosum L) production in Taplejung district of Nepal.," Agronomy Journal of Nepal, 2013.
[7]	Sapkota and Bajracharya, "Resource efficiency for potato production," Journal of Nepal Agricultural Research Council, pp. Vol. 4: 54-59, 2018.
[8]	Nityananda Layek and Gobinda Mula, "Economics of Potato Seed Production– an Analytical Study from Terai Zone of West Bengal," International Journal of Economic Plants, pp. 8 (3): 149-155, 2021.
[9]	Bajracharya, M., Sapkota, M., "Profitability and productivity of potato (Solanum tuberosum) in Baglung district, Nepal," Agric & Food Secur 6, p. 47, 2017.
[10]	Tolno et al., "Potato production and supply by smallholder farmers in Guinea: an economic analysis.," Asian J Agric Ext Econ Soc. 2016; 8 (3): 1–16.
[11]	Subedi, S., Ghimire, Y. N., Gautam, S., Poudel, H. K. and Shrestha, J., "Economics of potato (Solanum tuberosum L.) production in terai region of Nepal," Archives of Agriculture and Environmental Science, pp. 4 (1): 57-62, 2019.
[12]	Shrestha, K. P. et al., "Economics of Potato Production in Rural Area of Ilam District, Nepal," International Journal of Applied Sciences and Biotechnology, pp. 344-350, 2018.

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APA Style

Kumar Bolakhe, Krishna Hari Dhakal, Sabin Nepal, Rachana Dahal. (2022). Economic Analysis of Potato Basic Seed Production Under Contract Farming in Kavrepalanchok, Nepal. International Journal of Agricultural Economics, 7(1), 4-10. https://doi.org/10.11648/j.ijae.20220701.12

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ACS Style

Kumar Bolakhe; Krishna Hari Dhakal; Sabin Nepal; Rachana Dahal. Economic Analysis of Potato Basic Seed Production Under Contract Farming in Kavrepalanchok, Nepal. Int. J. Agric. Econ. 2022, 7(1), 4-10. doi: 10.11648/j.ijae.20220701.12

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AMA Style

Kumar Bolakhe, Krishna Hari Dhakal, Sabin Nepal, Rachana Dahal. Economic Analysis of Potato Basic Seed Production Under Contract Farming in Kavrepalanchok, Nepal. Int J Agric Econ. 2022;7(1):4-10. doi: 10.11648/j.ijae.20220701.12

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@article{10.11648/j.ijae.20220701.12,
  author = {Kumar Bolakhe and Krishna Hari Dhakal and Sabin Nepal and Rachana Dahal},
  title = {Economic Analysis of Potato Basic Seed Production Under Contract Farming in Kavrepalanchok, Nepal},
  journal = {International Journal of Agricultural Economics},
  volume = {7},
  number = {1},
  pages = {4-10},
  doi = {10.11648/j.ijae.20220701.12},
  url = {https://doi.org/10.11648/j.ijae.20220701.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20220701.12},
  abstract = {In Nepal, potato basic seed production under contract farming is at the initial phase. However, pre-basic seed potatoes were produced in Nepal since 1989/90, production of the basic seed has been relatively low, despite the government's lucrative subsidy on the price of pre-basic seed. There have been very limited studies on the production and economics of potato-basic seed under contract farming. This study examines the cost of production, resources use efficiency, return to scale, and various problem associated with the production of basic seed under contract farming in Kavrepalanchok, Nepal. The authors used the Cobb Douglas production function to explore the technological relationship between inputs and outputs. As well as to estimate and analyze the return to scale. They used a scaling technique to construct an index for prioritizing the problems of potato seed production under contract farming as per farmers' perception. The authors found the cost of basic-potato seed production per 500m² areas under contract farming as Rs. 99129.0064. The high cost of production is due to the higher cost of pre-basic seed. They found the gross return from seed production as Rs. 171547.2 per 500m² areas and the Benefit-cost ratio as 1.72. Similarly, they found positive regression coefficients for seed cost and organic manure which is significant at 1% level and negative regression coefficients for human labor which is significant at 5% level. They observed the overutilization of inputs in potato seed production under contracting farming, which was primarily due to the restrictions impeached by the contract agencies on the contract farmers. The authors found that unavailability of pre-basic seed in required quantity as the major problem faced by the farmers of the study area. A comparative study of the seed production with contract and without a contract, may illustrate the better scenario of the study area. Only a few studies have examined the economics of seed production under contract farming in developing countries. The authors’ findings suggest that productivity and profitability can be maximized if a proper allocation of the resources and existing problems of irrigation, insect.},
 year = {2022}
}

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TY  - JOUR
T1  - Economic Analysis of Potato Basic Seed Production Under Contract Farming in Kavrepalanchok, Nepal
AU  - Kumar Bolakhe
AU  - Krishna Hari Dhakal
AU  - Sabin Nepal
AU  - Rachana Dahal
Y1  - 2022/01/21
PY  - 2022
N1  - https://doi.org/10.11648/j.ijae.20220701.12
DO  - 10.11648/j.ijae.20220701.12
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 4
EP  - 10
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20220701.12
AB  - In Nepal, potato basic seed production under contract farming is at the initial phase. However, pre-basic seed potatoes were produced in Nepal since 1989/90, production of the basic seed has been relatively low, despite the government's lucrative subsidy on the price of pre-basic seed. There have been very limited studies on the production and economics of potato-basic seed under contract farming. This study examines the cost of production, resources use efficiency, return to scale, and various problem associated with the production of basic seed under contract farming in Kavrepalanchok, Nepal. The authors used the Cobb Douglas production function to explore the technological relationship between inputs and outputs. As well as to estimate and analyze the return to scale. They used a scaling technique to construct an index for prioritizing the problems of potato seed production under contract farming as per farmers' perception. The authors found the cost of basic-potato seed production per 500m² areas under contract farming as Rs. 99129.0064. The high cost of production is due to the higher cost of pre-basic seed. They found the gross return from seed production as Rs. 171547.2 per 500m² areas and the Benefit-cost ratio as 1.72. Similarly, they found positive regression coefficients for seed cost and organic manure which is significant at 1% level and negative regression coefficients for human labor which is significant at 5% level. They observed the overutilization of inputs in potato seed production under contracting farming, which was primarily due to the restrictions impeached by the contract agencies on the contract farmers. The authors found that unavailability of pre-basic seed in required quantity as the major problem faced by the farmers of the study area. A comparative study of the seed production with contract and without a contract, may illustrate the better scenario of the study area. Only a few studies have examined the economics of seed production under contract farming in developing countries. The authors’ findings suggest that productivity and profitability can be maximized if a proper allocation of the resources and existing problems of irrigation, insect.
VL  - 7
IS  - 1
ER  -

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Author Information

Kumar Bolakhe

Faculty of Agriculture, Agriculture and Forestry University, Rampur, Nepal
Krishna Hari Dhakal

Department of Genetics and Plant Breeding, Faculty of Agriculture, Agriculture and Forestry University, Rampur, Nepal
Sabin Nepal

Faculty of Agriculture, Agriculture and Forestry University, Rampur, Nepal
Rachana Dahal

Faculty of Agriculture, Agriculture and Forestry University, Rampur, Nepal

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Plain Text BibTeX RIS

APA Style

Kumar Bolakhe, Krishna Hari Dhakal, Sabin Nepal, Rachana Dahal. (2022). Economic Analysis of Potato Basic Seed Production Under Contract Farming in Kavrepalanchok, Nepal. International Journal of Agricultural Economics, 7(1), 4-10. https://doi.org/10.11648/j.ijae.20220701.12

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ACS Style

Kumar Bolakhe; Krishna Hari Dhakal; Sabin Nepal; Rachana Dahal. Economic Analysis of Potato Basic Seed Production Under Contract Farming in Kavrepalanchok, Nepal. Int. J. Agric. Econ. 2022, 7(1), 4-10. doi: 10.11648/j.ijae.20220701.12

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AMA Style

Kumar Bolakhe, Krishna Hari Dhakal, Sabin Nepal, Rachana Dahal. Economic Analysis of Potato Basic Seed Production Under Contract Farming in Kavrepalanchok, Nepal. Int J Agric Econ. 2022;7(1):4-10. doi: 10.11648/j.ijae.20220701.12

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@article{10.11648/j.ijae.20220701.12,
  author = {Kumar Bolakhe and Krishna Hari Dhakal and Sabin Nepal and Rachana Dahal},
  title = {Economic Analysis of Potato Basic Seed Production Under Contract Farming in Kavrepalanchok, Nepal},
  journal = {International Journal of Agricultural Economics},
  volume = {7},
  number = {1},
  pages = {4-10},
  doi = {10.11648/j.ijae.20220701.12},
  url = {https://doi.org/10.11648/j.ijae.20220701.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20220701.12},
  abstract = {In Nepal, potato basic seed production under contract farming is at the initial phase. However, pre-basic seed potatoes were produced in Nepal since 1989/90, production of the basic seed has been relatively low, despite the government's lucrative subsidy on the price of pre-basic seed. There have been very limited studies on the production and economics of potato-basic seed under contract farming. This study examines the cost of production, resources use efficiency, return to scale, and various problem associated with the production of basic seed under contract farming in Kavrepalanchok, Nepal. The authors used the Cobb Douglas production function to explore the technological relationship between inputs and outputs. As well as to estimate and analyze the return to scale. They used a scaling technique to construct an index for prioritizing the problems of potato seed production under contract farming as per farmers' perception. The authors found the cost of basic-potato seed production per 500m² areas under contract farming as Rs. 99129.0064. The high cost of production is due to the higher cost of pre-basic seed. They found the gross return from seed production as Rs. 171547.2 per 500m² areas and the Benefit-cost ratio as 1.72. Similarly, they found positive regression coefficients for seed cost and organic manure which is significant at 1% level and negative regression coefficients for human labor which is significant at 5% level. They observed the overutilization of inputs in potato seed production under contracting farming, which was primarily due to the restrictions impeached by the contract agencies on the contract farmers. The authors found that unavailability of pre-basic seed in required quantity as the major problem faced by the farmers of the study area. A comparative study of the seed production with contract and without a contract, may illustrate the better scenario of the study area. Only a few studies have examined the economics of seed production under contract farming in developing countries. The authors’ findings suggest that productivity and profitability can be maximized if a proper allocation of the resources and existing problems of irrigation, insect.},
 year = {2022}
}

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TY  - JOUR
T1  - Economic Analysis of Potato Basic Seed Production Under Contract Farming in Kavrepalanchok, Nepal
AU  - Kumar Bolakhe
AU  - Krishna Hari Dhakal
AU  - Sabin Nepal
AU  - Rachana Dahal
Y1  - 2022/01/21
PY  - 2022
N1  - https://doi.org/10.11648/j.ijae.20220701.12
DO  - 10.11648/j.ijae.20220701.12
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 4
EP  - 10
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20220701.12
AB  - In Nepal, potato basic seed production under contract farming is at the initial phase. However, pre-basic seed potatoes were produced in Nepal since 1989/90, production of the basic seed has been relatively low, despite the government's lucrative subsidy on the price of pre-basic seed. There have been very limited studies on the production and economics of potato-basic seed under contract farming. This study examines the cost of production, resources use efficiency, return to scale, and various problem associated with the production of basic seed under contract farming in Kavrepalanchok, Nepal. The authors used the Cobb Douglas production function to explore the technological relationship between inputs and outputs. As well as to estimate and analyze the return to scale. They used a scaling technique to construct an index for prioritizing the problems of potato seed production under contract farming as per farmers' perception. The authors found the cost of basic-potato seed production per 500m² areas under contract farming as Rs. 99129.0064. The high cost of production is due to the higher cost of pre-basic seed. They found the gross return from seed production as Rs. 171547.2 per 500m² areas and the Benefit-cost ratio as 1.72. Similarly, they found positive regression coefficients for seed cost and organic manure which is significant at 1% level and negative regression coefficients for human labor which is significant at 5% level. They observed the overutilization of inputs in potato seed production under contracting farming, which was primarily due to the restrictions impeached by the contract agencies on the contract farmers. The authors found that unavailability of pre-basic seed in required quantity as the major problem faced by the farmers of the study area. A comparative study of the seed production with contract and without a contract, may illustrate the better scenario of the study area. Only a few studies have examined the economics of seed production under contract farming in developing countries. The authors’ findings suggest that productivity and profitability can be maximized if a proper allocation of the resources and existing problems of irrigation, insect.
VL  - 7
IS  - 1
ER  -

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