Economics of production and marketing of mandarin in Parbat and Baglung districts of Nepal

Abstract

This study was conducted in mandarin growing areas of Parbat and Baglung districts of Gandaki Province where total of 67 representative farmers and 20 traders were selected as sample, in which 36 farmers were from Parbat and 31 farmers were from Baglung district. The average cost of Mandarin production per ropani (19.66 ropani= 1 hactare) was NRs. 17220 highest contributor being labor cost with 43.82 percent of share. Average return and profit of Mandarin farming per ropani was NRs. 48,978 and NRs. 31,757 respectively with B:C ratio of 2.93. Average return, profit and B:C ratio was found to be significantly higher in Parbat than Baglung. The Cobb-Douglas production function of Mandarin farming shows, output of Mandarin farming is significantly and positively affected by expenditure on labor, land rent, and cost of nutrients with the increasing return to scale (1.097). Producer-Pre-harvest contractor–Wholesaler-Retailor-Consumer was most prominent marketing channel with 55 percent share of total sold volume. Inadequate irrigation facility was the most prominent production problem, while poor marketing facility and access to market information were the most prominent marketing problems faced by farmers. Difficulty in transportation was recognized as the most prominent marketing problems faced by mandarin traders. Average marketing margin and producers’ share were NRs. 45.95 and 57.41 percent respectively both of which were highest in Parbat. In Parbat, harvesting is carried in January and February, which serves as off-season production in domestic markets, which ensures higher per unit price for respective district’s output among two districts.