Production economics, marketing and critical success factors of Large Cardamom in Bhojpur, Nepal

Large cardamom is a high-value spice crop grown commonly in mid-hills of Nepal. Price disparity coupled with production challenges are major immersing concerns in growth and development of this sub-sector. The study was designed in January 2019 to assess production scenario and marketing of large ca...

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Main Authors: Dharmendra Kalauni, Arati Joshi
Format: Article
Language:English
Published: Taylor & Francis Group 2019-01-01
Series:Cogent Food & Agriculture
Subjects:
Online Access:http://dx.doi.org/10.1080/23311932.2019.1701358
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author Dharmendra Kalauni
Arati Joshi
author_facet Dharmendra Kalauni
Arati Joshi
author_sort Dharmendra Kalauni
collection DOAJ
description Large cardamom is a high-value spice crop grown commonly in mid-hills of Nepal. Price disparity coupled with production challenges are major immersing concerns in growth and development of this sub-sector. The study was designed in January 2019 to assess production scenario and marketing of large cardamom in Bhojpur district of Nepal. Altogether, 120 large cardamom growers and 20 traders were selected using purposive sampling technique. Data were analysed using SPSS and Ms-Excel. Cobb-Douglas production function was used to estimate the factor share to the total output production. Findings revealed that more than 45% of total annual household income was attributed by cardamom itself. Overall benefit and cost ratio was found greater than unity (1.467). Cobb-Douglas production function showed that all cardamom-growing farmers were experiencing increasing returns to scale. Higher producer’s share (90.32%) was found when farmer sell their large cardamom directly to the exporter while least producer’s share (69.21%) was found in domestic market channel with large number of intermediaries. Increase in marketing margin, marketing costs and decrease in marketing efficiency and producers’ share were observed with increase in number of marketing intermediaries and vice-versa. About 55% of the large cardamom exporters believed that the Indian market was the most responsible factor for export price determination. From study, it is recommended to strengthen market or price intervention by concerned authority and also it is high time to identify possible routes to potential international markets (besides India) to receive competitive higher price.
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spelling doaj.art-86bfa12a7a0b4780b486b36b316f14472022-12-21T18:27:25ZengTaylor & Francis GroupCogent Food & Agriculture2331-19322019-01-015110.1080/23311932.2019.17013581701358Production economics, marketing and critical success factors of Large Cardamom in Bhojpur, NepalDharmendra Kalauni0Arati Joshi1Agriculture and Forestry UniversityAgriculture and Forestry UniversityLarge cardamom is a high-value spice crop grown commonly in mid-hills of Nepal. Price disparity coupled with production challenges are major immersing concerns in growth and development of this sub-sector. The study was designed in January 2019 to assess production scenario and marketing of large cardamom in Bhojpur district of Nepal. Altogether, 120 large cardamom growers and 20 traders were selected using purposive sampling technique. Data were analysed using SPSS and Ms-Excel. Cobb-Douglas production function was used to estimate the factor share to the total output production. Findings revealed that more than 45% of total annual household income was attributed by cardamom itself. Overall benefit and cost ratio was found greater than unity (1.467). Cobb-Douglas production function showed that all cardamom-growing farmers were experiencing increasing returns to scale. Higher producer’s share (90.32%) was found when farmer sell their large cardamom directly to the exporter while least producer’s share (69.21%) was found in domestic market channel with large number of intermediaries. Increase in marketing margin, marketing costs and decrease in marketing efficiency and producers’ share were observed with increase in number of marketing intermediaries and vice-versa. About 55% of the large cardamom exporters believed that the Indian market was the most responsible factor for export price determination. From study, it is recommended to strengthen market or price intervention by concerned authority and also it is high time to identify possible routes to potential international markets (besides India) to receive competitive higher price.http://dx.doi.org/10.1080/23311932.2019.1701358benefit-costcardamomproducer’s sharehousehold incomemarketing efficiency
spellingShingle Dharmendra Kalauni
Arati Joshi
Production economics, marketing and critical success factors of Large Cardamom in Bhojpur, Nepal
Cogent Food & Agriculture
benefit-cost
cardamom
producer’s share
household income
marketing efficiency
title Production economics, marketing and critical success factors of Large Cardamom in Bhojpur, Nepal
title_full Production economics, marketing and critical success factors of Large Cardamom in Bhojpur, Nepal
title_fullStr Production economics, marketing and critical success factors of Large Cardamom in Bhojpur, Nepal
title_full_unstemmed Production economics, marketing and critical success factors of Large Cardamom in Bhojpur, Nepal
title_short Production economics, marketing and critical success factors of Large Cardamom in Bhojpur, Nepal
title_sort production economics marketing and critical success factors of large cardamom in bhojpur nepal
topic benefit-cost
cardamom
producer’s share
household income
marketing efficiency
url http://dx.doi.org/10.1080/23311932.2019.1701358
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