Analysis of Resource Use Efficiency and Profitability of maize seed production in the Rolpa district of Nepal

Abstract

This study aimed to assess the profitability and resource use efficiency of maize seed production in the Rolpa district of Nepal. Primary data were collected from a sample of 67 maize-growing farmers involved in maize seed production, selected randomly from the sampling frame with a confidence level of 95% and a margin of error of 5%, using Raosoft. Additionally, secondary information was obtained through a review of relevant literature. Descriptive statistics and the Cobb-Douglas production function were employed for data analysis. The results indicated that maize seed production in the study area was profitable, as evidenced by a gross margin of 17,160.6 NRs./ha and a benefit-cost ratio of 1.12. The productivity level was estimated at 15.46 qtl/ha. Moreover, the return to scale of maize seed production was calculated to be 0.79, suggesting a decreasing return to scale. The analysis of allocative efficiency indices highlighted the need for optimizing resource allocation. Specifically, increasing costs on seed, chemical fertilizers, and management by 94.03%, 99.30%, and 60.25% respectively would lead to optimal resource allocation. Conversely, costs related to human labor, farmyard manure (FYM), and tillage should be reduced. This research contributes to a better understanding of the profitability and resource utilization in maize seed production in the Rolpa district of Nepal. The findings provide valuable insights for farmers and policymakers to make informed decisions regarding resource allocation and enhance the overall efficiency and sustainability of maize seed production in the region.