Organic farming is the form of production and management system that avoids or excludes the use of synthetic chemical inputs or genetically modified organisms and focus on utilizing natural resource and management system. Organic farming gives importance to environmental preservation, protection and human health (Meena et. al., 2013). Organic farming is a form of agricultural production practice where chemicals are not used on crops from planting to the final consumption. It is an environment friendly production management system that aims to protect and improve biodiversity and environment as well as human health (Behera et. al., 2012). And, product of such production management system is known as organic products. Our current modern agriculture system is heavily influenced and dependent upon large amounts chemicals and synthetic products such as fertilizer, pesticide, growth hormone etc., which causes increase in cost of production and at the same time harms environmental quality and human health. Such increased large scale use of chemical products lead to the increase in extent and rate of several diseases such neural diseases, cancerous infection, body disorders etc. With the increase in occurrence of such life threatening diseases, world is moving toward increasing healthier and quality food (Rock et al., 2017a). The search of more sustainable, balance and healthier farming system, led to the organic farming. It not only helped to lower cost of production and minimization of environmental degradation also improvements of human health (Worthington, 2001). There is increasing demand for organic production throughout the world especially in developed countries mainly due to health issue. But, we cannot forget that demand is always dependent upon price of the commodity. Generally output production level of organic production system is considered to be lower in comparison to inorganic farming system (Issaka et. al., 2016). Due to that reason, production, productivity, profitability and market competition has become significantly important issue on the discussion of food security and organic farming, especially in developing nation like Nepal. Nepal is developing nation with significantly lower per capita income (Shrestha and Baral, 2018a), so we cannot overlook production cost and purchasing cost as well. Ponti et. al. (2012) reported on an average general production level of organic farming is 20% less in comparison to inorganic farming system. Savage (2015) reported that on an average 89% of organic cultivated land shows lower productivity in comparison to inorganic farming. So lower productivity directly implies higher per unit cost of production and higher price for consumer.
This study was conducted in the Ilam district of Nepal to analyse resource use efficiency and economies of scale of ginger farming. A total of 160 farmers and 20 traders (collector, wholesaler and retailers) from the study area were randomly selected as the sample. The pre-tested systematic questionnaire, fitted in KoBo Toolbox, was used to obtain the primary data through face to face household interviews. The production function of ginger farming was in increasing return to scale, with a score of 1.1356. The result showed that expenditure on seed and labour was over utilised. Except for these two, other inputs of ginger farming were underutilised. Economies of scale for ginger production was 44 quintal in production quantity and 5.68 ropani (1 hectare=19.66 ropani) in area. To obtain economies of scale, ginger production and size must be increased by around double the present context. The study concluded that to increase the profitability of ginger farming, resources must be utilised in optimum conditions, and production scale must be increased.
This study was conducted in mandarin growing areas of Parbat and Baglung districts of Gandaki Province where total of 67 representative farmers and 20 traders were selected as sample, in which 36 farmers were from Parbat and 31 farmers were from Baglung district. The average cost of Mandarin production per ropani (19.66 ropani= 1 hactare) was NRs. 17220 highest contributor being labor cost with 43.82 percent of share. Average return and profit of Mandarin farming per ropani was NRs. 48,978 and NRs. 31,757 respectively with B:C ratio of 2.93. Average return, profit and B:C ratio was found to be significantly higher in Parbat than Baglung. The Cobb-Douglas production function of Mandarin farming shows, output of Mandarin farming is significantly and positively affected by expenditure on labor, land rent, and cost of nutrients with the increasing return to scale (1.097). Producer-Pre-harvest contractor-Wholesaler-Retailor-Consumer was most prominent marketing channel with 55 percent share of total sold volume. Inadequate irrigation facility was the most prominent production problem, while poor marketing facility and access to market information were the most prominent marketing problems faced by farmers. Difficulty in transportation was recognized as the most prominent marketing problems faced by mandarin traders. Average marketing margin and producers' share were NRs. 45.95 and 57.41 percent respectively both of which were highest in Parbat. In Parbat, harvesting is carried in January and February, which serves as off-season production in domestic markets, which ensures higher per unit price for respective district's output among two districts.
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