Analysis of economic, production, and marketing aspects of potato farming in Changunarayan Municipality of Bhaktapur, Nepal

Abstract

A comprehensive study was undertaken in the Changunarayan Municipality of Bhaktapur District to conduct a thorough cost-benefit analysis, analyze production functions, and evaluate the various marketing channels and associated challenges of potato cultivation.   total of 100 farmers were surveyed, and gathered data were, analyzed using Excel and SPSS software. Despite an average cost per hectare of potato cultivation reaching NRs 370,662.58, which is comparatively higher than in other regions, the productivity was notably greater at 22.021 Mt/ha, surpassing the national average of 16.73 Mt/ha. With a benefit-cost ratio of 1.68, potato production was found economically viable in the region. The production function analysis, conducted using the Cobb-Douglas Model, revealed noteworthy insights among the six variables examined. Fertilizers, machinery, plant protection measures, and micronutrients were identified as underutilized inputs, as indicated by a RUE value surpassing unity. Conversely, labor cost and various other factors exhibited negative associations with average returns. The study also revealed that potato production in the area exhibited an increasing Return to Scale (RTS) value of 1.619, indicating that a 1% increase in input expenditure would lead to a 1.619% increase in returns. Farmers primarily choose a marketing channel with three intermediaries, which results in a larger market margin but a smaller share for the producers. Among the five key marketing challenges reported by farmers, the influence of intermediaries stands out as the most significant issue. In conclusion, this study highlights the pressing need for efficient marketing channels and fair pricing systems to support potato farmers in the region.