Abstract
This study was carried in Nepalgunj Sub-Metropolitan City, Nepal to understand awareness of consumers’ about organic product, consumers’ willingness to pay for organic products and socio-economic factors affecting their decision of willingness to pay for consumption of organic goods. Total of 200 respondents were selected as sample population. Among total respondents, 85.5% of respondent were aware about organic products, among which only 53% respondents were well informed about organic products and their importance. Out of 200 randomly selected respondents only 114 respondents were willing to pay addition cost or price premium for organic products. Among ten socioeconomic variables listed only seven variables found to be determinant of willingness to pay premium price for organic agricultural products, which are gender, occupation, income level and education of respondents, and awareness about chemical residue absence in organic agriculture products, perception of higher nutrition on organic products and awareness about health benefit from organic products. Result showed that income level and health consciousness are two most important determining factor. So, there is a need to find a way so that more and more people can be made aware about organic agricultural products and provide organic products at reasonable price premium.
Highlights
Organic farming is the form of production and management system that avoids or excludes the use of synthetic chemical inputs or genetically modified organisms and focus on utilizing natural resource and management system
This study was carried in Nepalgunj Sub-Metropolitan City, Nepal to understand awareness of consumers' about organic product, consumers' willingness to pay for organic products and socio-economic factors affecting their decision of willingness to pay for consumption of organic goods
This study reveals that more than half of population are willing to pay premium price for organic products, provided limited price addition
Summary
Organic farming is the form of production and management system that avoids or excludes the use of synthetic chemical inputs or genetically modified organisms and focus on utilizing natural resource and management system. Organic farming is a form of agricultural production practice where chemicals are not used on crops from planting to the final consumption It is an environment friendly production management system that aims to protect and improve biodiversity and environment as well as human health (Behera et al, 2012). Our current modern agriculture system is heavily influenced and dependent upon large amounts chemicals and synthetic products such as fertilizer, pesticide, growth hormone etc., which causes increase in cost of production and at the same time harms environmental quality and human health. Such increased large scale use of chemical products lead to the increase in extent and rate of several diseases such neural diseases, cancerous infection, body disorders etc. It helped to lower cost of production and minimization of environmental degradation improvements of human health (Worthington, 2001)
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