ECONOMIC ANALYSIS OF TEA FARMING IN JHAPA DISTRICT, NEPAL

Abstract

Tea, one of the biggest high-value exports from Nepal, which uses up 16,920 hectares of total land and accounts for 0.1% of the country’s GDP. Tea as usually cultivated in the eastern regions of the nation, has significantly altered peoples’ livelihoods while also boosting national income. This study was conducted on the economic analysis of tea production by farmers in Jhapa district of Nepal on parts of Bhadrapur, Haldibari and Kachankawal. Random survey of 60 samples were taken from the research area’s tea farmers. The average area under tea cultivation was found to be 0.53 hectares per household. The average production per hectare was 23.05 tons, average production cost per hectare was Rs. 244,743.82 and Rs. 10.23 per kg. There were overall chances of 5% loss of the harvested tea leaves which deducted total marketable leaves. The average price of 1 kg of leaves was Rs. 19.5 and the marketing practice was done via middlemen which cost Rs. 2.5 per kg of leaves. The average gross margin per kg was Rs. 6.73 with overall benefit-cost ratio of 1.86 for every household. SWOT analysis conducted showed that favourable soil conditions had major strength with index of importance of 0.85. Likewise, difficulties in obtaining subsidies, family financial aid and market competition from private estates were major weakness, opportunity, and threat with index of 0.88, 0.85, and 0.90 respectively.