Cost-benefit analysis and resource use efficiency of rice production system in different agriculture landscapes in Chitwan district, Nepal

Abstract

The study was conducted to determine the cost-benefit analysis and resource use efficiency of the rice production system in different agriculture landscapes in the Chitwan district in 2018. The sample size of 102 rice-growing farmers out of 600 farmers, having an area of farm size greater than 0.5 hectares, was determined using Raosoft Inc. Software. A simple random sampling technique was used to collect 102 rice-growing household information in four municipalities (2 in plain and 2 in hilly area) using a semi-structured questionnaire. Data were analyzed using descriptive and statistical tools including Cobb-Douglas production function. Results showed that the use of inputs like seeds, chemical fertilizer and machinery like tractor were found significantly higher in the plain area whereas the use of inputs like labor, farmyard manure (FYM) and bullocks was found in higher in the hilly area. The costs of fertilizer, machinery, pesticide, and transportation were found higher in the plain area whereas the costs of seed, FYM, labor and bullocks were significantly higher in the hilly area. Production of rice per household was 1.87 ton whereas productivity was 5.2 ton/ha, gross profit was NRs. 41435and benefit-cost ratio was 1.59 in the plain area which was found significantly higher than the hilly area. The return to scale was found to be 0.48 which revealed that inputs used in rice production were ineffectively utilized in which organic fertilizer and labor resource were overused and seed, fertilizer, machinery and bullocks, pesticides and transportation were underused resources. The optimal allocation of these resources will increase the profitability of rice farming.