Socio-economic analysis of vegetable seed production in Nepal

Abstract

Abstract. A survey was conducted at Musikot, Western Rukum, Nepal in 2019 to analyze the economic results of vegetable seed production using a well-structured pre-tested questionnaire. The average landholding per household was 8.14 ropani (1 ropani = 0.05 ha), as 33.74% of landholding (equal to 50.36% of the cultivated land) was under vegetable seed production. Vegetable seed production generated 46% of on-farm income equal to 23% of total household income. The share of on-farm activities and off-farm activities in household income was almost equal. 64% of the farming households were food self-sufficient. 39% of the farmers were new to the vegetable seed production enterprise whereas 5% of the farmers were involved from 40 years. 49% of the cost in vegetable seed production was incurred in labor. About eight thousand rupee were sufficient to run a vegetable seed production enterprise per ropani that had made a gross margin of NRs 9,614.36 per ropani. Radish occupied 46.5% of the vegetable seed producing land and generated 53.5% of the vegetable seed revenue. BCR of 2.21 suggested that vegetable seed production enterprise brings NRs 2.21 at the investment of NRs 1. Swiss-chard had the highest price spread (90%) whereas radish and turnip had the lowest (57%). Sensitivity analysis showed that vegetable seed production enterprise was a viable business even after a 20% increase in cost and 20% reduction of revenue simultaneously. Disease infestation and insect attack were two major production problems and price fluctuation and inadequate market information were two major marketing problems faced by vegetable seed producers at Musikot, Western-Rukum, Nepal.

Keywords

• economic analysis
• vegetable seed production
• revenues and costs
• gross margin
• price spread