Analyzing the Economic Dynamics of Mustard Farming in Eastern Chitwan, Nepal

Abstract

Mustard cultivation boasts a rich historical legacy in Nepal, dating back to prehistoric times. Chitwan, a district located in Bagmati province, is one of major mustard producing districts of Nepal. The study entitled “Analyzing the Economic Dynamics of Mustard Farming in Eastern Chitwan, Nepal “was conducted from March 2022 to July 2022. The major objective of the study was to conduct a comprehensive economic appraisal of mustard production in Eastern Chitwan, Nepal. A total of 123 samples were taken from four municipalities of Eastern Chitwan using semi-structured questionnaire. Descriptive and statistical tools including Cobb-Douglas production function were used to analyze the collected data. Farmers were found to be cultivating mustard on an average land of 0.47 hectare with an average production of 14,283 kg per hectare. The average cost of production per hectare was calculated to be NPR 12, 01,452. Mustard production business in the study area was observed to be a profitable business enterprise with a B/C ratio of 1.78 yielding an average return of NPR 21,42,440 and net profit of NPR 9,40,988. The major identified market areas were Tandi, Khairahani bazar, Bhandara, Kholesimal and Bakulahar. The most preferred marketing channel was observed to be from producers directly to consumers. The study revealed that higher costs of fertilizer, plant protection, and labor were associated with increased gross income in mustard farming, supported by statistical significance.