Profitability and Resource Use Efficiency Analysis of Potato Cultivation in Doti District of Nepal

Abstract

A study entitled “Profitability and Resource use efficiency analysis of potato cultivation in Doti district of Nepal” was conducted on Bogtan and Jorayal RM of Doti on March April 2023 with an objective to access the profitability and resource use status in Potato production. 100 farming HH were randomly selected and interviewed using structured questionnaire. Data analysis was using SPSS and Microsoft excel to identify the BC ratio and resource use efficiency using Cobb Douglas production function. It was observed that potato production is Profitable in the study area with average yield of 446.02 Kg per kattha providing gross return of NRs. 13607.60 per kattha which statistically similar in both RM. Net return (NRs 2851.4) and BC ratio (1.25) by farmers of Jorayal is statistically par at 5% and 1% level of confidence in compared to Net return (NRs. 1875.59) and BC ratio (1.15) enjoyed by farmers of Bogtan. On production function analysis it was revealed that Cost of FYM in both Jorayal (0.24) and Bogtan (0.31) and Cost of total labor in Bogtan (0.39) was significant at 1% Confidence level. Similarly Cost of seed in Bogtan (0.33), Cost of Pesticide in Jorayal (0.12) and total cost of labor in Jorayal (0.20) was significant at 5% level of confidence, while Cost of seed (0.28) in Jorayal was significant at 10% level of Confidence. Efficiency ratios indicated that cost of seed in Bogtan (12.01) and Jorayal (10.61), Cost of FYM in Bogtan (11.33) and Jorayal (9.21), Cost of pesticide in Bogtan (1.98) and Jorayal (5.58), and labor in Bogtan (13.24) and Jorayal (7.20), while cost of land preparation and planting in Bogtan (4.46) were higher than 1 suggesting was underutilizing these resources while cost of land preparation and planting (-1.02) was overused in Jorayal. Therefore the findings suggests that number of factors, such as inadequate training and capacity building, traditional management techniques, a lack of investment in capital or technology, had led to underutilization of resources which must be addressed for optimal production and Income.