An Economic Analysis of Paddy Production in Kanchanrup, Saptari District of Nepal

Abstract

Rice falls under the grass family Graminae. Paddy cultivation is the principal activity and source of income for millions of people worldwide. The purpose of this research was to better understand the paddy production economics, socioeconomic position, potential, and challenges in Kanchanrup municipality, Saptari District. Using a basic random sampling procedure, 60 rice growers were sampled. A pre-tested interview approach was used to obtain primary data, and a study of relevant literature was used to acquire secondary data. Further, descriptive statistics, SPSS, and MX Excel were used to analyze the data. Among 60 rice-growing farmers, the percentage of the male was 98.3% and females were 1.7% respectively. The average land under paddy cultivation per household was found to be 0.98 hectares. Production costs are estimated by adding variable and fixed costs, however, because rice is a short-lived crop, total fixed costs are not taken into account. Kanchanrup’s average variable cost of rice production is NRs. 114758.18. (Per hectare). Similarly, the total profit was NR 20979.32 and the total yield was NR 135737.5 (Per ha). Kanchanrup has a B: C ratio of 1.18, indicating that the paddy is growing economically viable in the Municipality. The business can provide returns of NPR 1.18 for every rupee invested, and the gross margin is positive, indicating that the investment is financially sustainable and the operation may proceed without any problems.