Production Potential of Banana in Nepal: Growth Trend and a Comparative Analysis

Abstract

Fruit crops are the dynamic source of nutrition, employment and income. The growth trend in area, production and productivity of Banana fruit in Nepal for 30 years (1990-2019) was estimated from secondary data using compound annual growth rate (CAGR), instability and decomposition analysis along with comparative review on benefit cost analysis with India. Tremendous high growth in world’s banana area (57.19%), production (160.58%) and yield (65.77%) were observed in time period between 1989 to 2019 A.D. India is the largest producer whereas; Indonesia represents highest yield with 55.06 mt/ha. The overall CAGR of 30 years in area, production and productivity for Nepalese Banana is 5.96%, 6.38% and 0.40% respectively which seems very positive and showing greater potentiality and need to maintain stability with significant growth in yield. Decomposition analysis resulted yield effect 86.90% and was most responsible for increasing production of banana with interaction effect 10.66% indicating that the area has been playing a driving force in the differential production of Banana in Nepal. Higher income from banana farming was observed in India, compared to Nepal. Although, study shows greater opportunity and potentiality; lack of adequate research and high yielding varieties, small farm size, poor management and post-harvest technologies, smooth value chain linkages and seasonal production and price fluctuations are the major constraints of banana sector.