Economics of production and marketing of natural rubber (Hevea brasiliensis) in Jhapa, Nepal

Abstract

A study was carried to assess the production and marketing status of natural rubber in Jhapa district in 2019, from a random sample of 70 households and 5 traders. Results were drawn using descriptive and inferential statistics employing SPSS and MS-Excel. The average area under natural rubber cultivation was 2.2 bigha and the productive area was 1.21 bigha. The average rubber sheet produced per household was 1167.092 kg and average yield was found to be 958.77 kg/bigha in the study area. The average annual household income from natural rubber was found to be NRs. 233418.57 which contributes 58.54 percent in the total household income. Three marketing channels were identified and the price spread ranged from NRs. 20 to 40. The producers’ share in consumers’ price ranged from 81.82% to 90.91%. The major production problem identified was the lodging by wind (0.80) and the major marketing problem faced by producers and traders was the absence of grading facility (0.82). Rubber farms were found to be a profitable farm enterprise with a discounted benefit-cost ratio of 1.88. The calculated NPV was 410992.40, IRR was 22% and PBP was 8.52 years respectively denoting the sustainability of rubber cultivation. RRIM 600, RRII 105 and GT1 were the major growing varieties of rubber in the study area. The cost of establishment in the first year (48.702%) is highest compared to the following years. The selling price of latex and sheet was found higher in 2015 and 2016 with a reduction of price in 2017 due to the high import of Indonesian rubber sheet. This research tries to present the general idea on the overall production and marketing status in the study area.