Comparative Analysis of Cost, Return, Profitability and Labor Use in Mechanized and Traditional Rice Farms in Nepal

Abstract

The main objective of the study was to assess cost, returns and labor use status between mechanized and traditional rice farms in the Tarai of Nepal. The study was conducted using multistage sampling technique in Jhapa, Sunsari and Bardiya districts covering 274 mechanized and 220 traditional rice farms. Farm budget analysis was used to compute the cost and yield returns from both type of rice farms. The study revealed that the per hectare average human labor used by traditional farm was significantly higher (141.6 man days/hectare) than mechanized rice farm (72.7 man days/per hectare). The per hectare average machine hour used in mechanized farm was 14.0 hours. Number of bullock labor required in traditional rice farm was more than 4 times higher than in mechanized rice farm and was significant. Per hectare total cost of production in mechanized and traditional farms was NRs 85,434.6 and NRs. 95,993.6, respectively and the mean difference was significant. The mechanized rice farm had significantly higher income (NRs. 112711.1/ha) than traditional rice farm (NRs.102064.9/ha). The benefit csot ratio per hectare was significantly higher in mechanized farm (1.32) as compared to traditional(1.06). The variable cost saved in mechanized farm in comparison to traditional rice farm was NRs. 20,366.8 per hectare, which was 24.80 % and was significant. The study indicated that the use of farm machines for rice cultivation would significantly save the human labor cost, reduce cost of production, increase the yield thereby removing drudgery; addressing the labor shortage issues and making mechanized rice farm more profitable.

Comparative Economics of Main Season and Spring Rice Production in Kanchanpur District, Nepal

“…The analysis of the cost of production involved calculating the various components of variable costs. Cost of cultivation is the sum of variable costs and fixed costs expressed on a per hectare basis (Acharyaa et al, 2021).…”

“…Gross margin = Gross return -Total variable cost 4) Gross Profit: Gross profit, also known as net profit, is the difference between the gross margin and total fixed costs (Acharyaa et al, 2021). The formula to calculate net profit is as follows:…”

Sheath Blight of rice: A review of host plant interaction and disease management

“…Rice contributes 20% to Nepal's GDP and 7% to AGDP with production of approx. 5.61 million tons in area of about 1.49 million hectares (Acharya et al, 2020). With nutritive value of 80% carbohydrates, 7-8% protein, 3% fat and 3% fiber, rice contributes around 80% of the nutrition for more than 2 billion people in Asia alone.…”