Profitability, productivity and resource use efficiency of banana production in Hetauda-Dumkibas road corridor, Nepal

The study employed cost-return analysis, Cobb-Douglas production function and marginal value product-marginal factor cost (MVP-MFC) approach to estimate and analyze profitability, productivity and resource use efficiency, respectively, of banana production in the Hetauda-Dumkibas road corridor. Prim...

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Main Authors: Manoj Sharma, Shiva Chandra Dhakal, Raj Kumar Adhikari, Ujjal Tiwari
Format: Article
Language:English
Published: Taylor & Francis Group 2021-01-01
Series:Cogent Food & Agriculture
Subjects:
Online Access:http://dx.doi.org/10.1080/23311932.2021.1917134
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author Manoj Sharma
Shiva Chandra Dhakal
Raj Kumar Adhikari
Ujjal Tiwari
author_facet Manoj Sharma
Shiva Chandra Dhakal
Raj Kumar Adhikari
Ujjal Tiwari
author_sort Manoj Sharma
collection DOAJ
description The study employed cost-return analysis, Cobb-Douglas production function and marginal value product-marginal factor cost (MVP-MFC) approach to estimate and analyze profitability, productivity and resource use efficiency, respectively, of banana production in the Hetauda-Dumkibas road corridor. Primary data and information were collected from a total of 160 banana producers, 80 from each district, using pretested semi-structured questionnaires. The benefit-cost ratio (BCR) of banana was 1.57 in the first cropping season and 1.92 in succeeding cropping seasons, indicating that one USD spent on banana production yielded 57 cents profit from the first cropping season and 92 cents from succeeding cropping seasons. Suckers, fertilizers, labors and fixed variables were found to have positive and significant effects on gross income of banana production. The return to scale (1.037) was found slightly increasing. The analysis of resource use efficiency showed that fixed variables (mainly, rental value and insurance), suckers and labors were underutilized resources while plant protection chemicals and manures were over-utilized resources. Expensive and poor insurance coverage, insufficiency of quality suckers and timely unavailability of labors were major reasons for underutilization, while easy availability of manures and higher occurrence of pests and diseases were reasons for overutilization of manures and plant protection chemicals, respectively. Therefore, research on tissue culture technology should be promoted to produce a large scale of disease and pest resistant varieties of bananas. Moreover, policy efforts to enhance reliable distribution networks of insurance companies and intercultural agro-machineries are recommended to increase profitability and productivity from banana production.
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spelling doaj.art-d4b9a7891bfd4c60918340736d40a7542022-12-21T17:22:32ZengTaylor & Francis GroupCogent Food & Agriculture2331-19322021-01-017110.1080/23311932.2021.19171341917134Profitability, productivity and resource use efficiency of banana production in Hetauda-Dumkibas road corridor, NepalManoj Sharma0Shiva Chandra Dhakal1Raj Kumar Adhikari2Ujjal Tiwari3Agriculture and Forestry University (AFU)Agriculture and Forestry University (AFU)Value Chain Development of Fruit and Vegetables Project (VCDP), NepalAgriculture and Forestry University (AFU)The study employed cost-return analysis, Cobb-Douglas production function and marginal value product-marginal factor cost (MVP-MFC) approach to estimate and analyze profitability, productivity and resource use efficiency, respectively, of banana production in the Hetauda-Dumkibas road corridor. Primary data and information were collected from a total of 160 banana producers, 80 from each district, using pretested semi-structured questionnaires. The benefit-cost ratio (BCR) of banana was 1.57 in the first cropping season and 1.92 in succeeding cropping seasons, indicating that one USD spent on banana production yielded 57 cents profit from the first cropping season and 92 cents from succeeding cropping seasons. Suckers, fertilizers, labors and fixed variables were found to have positive and significant effects on gross income of banana production. The return to scale (1.037) was found slightly increasing. The analysis of resource use efficiency showed that fixed variables (mainly, rental value and insurance), suckers and labors were underutilized resources while plant protection chemicals and manures were over-utilized resources. Expensive and poor insurance coverage, insufficiency of quality suckers and timely unavailability of labors were major reasons for underutilization, while easy availability of manures and higher occurrence of pests and diseases were reasons for overutilization of manures and plant protection chemicals, respectively. Therefore, research on tissue culture technology should be promoted to produce a large scale of disease and pest resistant varieties of bananas. Moreover, policy efforts to enhance reliable distribution networks of insurance companies and intercultural agro-machineries are recommended to increase profitability and productivity from banana production.http://dx.doi.org/10.1080/23311932.2021.1917134bcrproduction functionresource use efficiencybanananepal
spellingShingle Manoj Sharma
Shiva Chandra Dhakal
Raj Kumar Adhikari
Ujjal Tiwari
Profitability, productivity and resource use efficiency of banana production in Hetauda-Dumkibas road corridor, Nepal
Cogent Food & Agriculture
bcr
production function
resource use efficiency
banana
nepal
title Profitability, productivity and resource use efficiency of banana production in Hetauda-Dumkibas road corridor, Nepal
title_full Profitability, productivity and resource use efficiency of banana production in Hetauda-Dumkibas road corridor, Nepal
title_fullStr Profitability, productivity and resource use efficiency of banana production in Hetauda-Dumkibas road corridor, Nepal
title_full_unstemmed Profitability, productivity and resource use efficiency of banana production in Hetauda-Dumkibas road corridor, Nepal
title_short Profitability, productivity and resource use efficiency of banana production in Hetauda-Dumkibas road corridor, Nepal
title_sort profitability productivity and resource use efficiency of banana production in hetauda dumkibas road corridor nepal
topic bcr
production function
resource use efficiency
banana
nepal
url http://dx.doi.org/10.1080/23311932.2021.1917134
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