RESOURCE USE EFFICIENCY OF MUSHROOM PRODUCTION IN KATHMANDU VALLEY

Abstract

Mushroom is a highly nutritious fungus that has gained popularity in Nepal as people’s eating habits have changed, expanding the scope of mushroom production in Nepal. To meet the increased demand of the consumer increase in mushroom production is essential. However, satisfactory production increment has not been observed in the country. Therefore, a study was conducted focusing on exploring the profitability of the mushroom enterprise, factors affecting the production, the efficiency of resources used, and problems faced by mushroom growers of Kathmandu Valley in 2019. Benefit-cost analysis, Cobb-Douglas production function, and indexing method were used in the study. The result showed that the mushroom enterprise was found to be profitable with a benefit-cost ratio of 1.49. Its profitability could be increased by reducing the production cost of certain input factors: firewood and labor. Similarly, the mushroom enterprise is at decreasing return (0.69) to scale, therefore adjustments on inputs- spawn firewood, plastic, and labor need to be considered to increase the profitability of the mushroom farming. The overutilized inputs- spawn, irrigation, and plastic use should be reduced while underutilized inputs- firewood, straw, plant protection, and labor use should be utilized efficiently to increase the productivity of the mushroom. Subsidy in spawn, straw, and equipment related to spawn production, maintenance of the quality of spawn, and effective monitoring of subsidy institutions at the ground level could encourage farmers to grow mushrooms, thereby leading to increased profitability of mushroom production.