Comparative Economics of Main Season and Spring Rice Production in Kanchanpur District, Nepal

Abstract

Rice is the major staple food crop in Nepal which has been growing in two different seasons mainly June/July – October/November as main season rice (MSR) whereas during February/March – June/July as spring rice (SR). A comparative economic analysis of MSR and SR production in Kanchanpur district Nepal was conducted during March to July 2023. A total of 120 rice-growing farmers including 60 MSR and 60 SR growers were randomly selected from the available grower list to collect primary information by using pre-tested interview schedules. Descriptive statistics, independent sample t-tests, and the Cobb-Douglas production function were employed for the data analysis. The study finding revealed that the average landholding of MSR growers was 0.65 ha/hh, whereas the same for SR growers, was 0.55 ha/hh. The average area for MSR and SR were at 0.53 ha and 0.29 ha, respectively. The average productivity of the SR (3.69 t/ha) in the study area was found to be significantly higher than the MSR (4.61 t/ha). Despite the higher cost of production for SR (Rs. 80309.95/ha) than MSR (Rs. 75048.45/ha), the Benefit-Cost ratio for SR was found to be higher (1.61) than that of MSR (1.38). The analysis of coefficients indicated a decreasing for main season rice and increasing return to scale for spring rice, with sums of coefficients measuring 0.74 and 1.24 respectively. This implies that a 100% increase in expenditure on the variables outlined in the model for MSR and SR led to a 74% and 95% increase in the gross return of rice production. These results underscore the potential advantages of promoting improved seed varieties and adopting commercial farming practices in the spring rice cultivation area. The findings indicated the need to replace manual labor with machinery to reduce costs and increase rice cultivation profits.