IMPLICATION OF MINIMUM SUPPORT PRICE AS A SUBSTANTIVE ' SUPPORT’ TO PADDY FARMERS IN KANCHANPUR DISTRICT, NEPAL

Jyotish Joshi () and Tilak Raj Chaulagai
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Jyotish Joshi: Himalayan College of Agricultural Science and Technology, Nepal
Tilak Raj Chaulagai: Department of Agriculture, Ministry of Agriculture and Livestock Development, Nepal

Food & Agribusiness Management (FABM), 2024, vol. 5, issue 2, 73-78

Abstract: The Government of Nepal has implemented the Minimum Support Price (MSP) policy to ensure farmers a fair price for their produce, however, its efficacy in the case of paddy is questionable. Therefore, this study aims to assess the implications of the minimum support price as a support mechanism for paddy farmers in Kanchanpur district, Nepal. A total of 120 respondents were selected from the study area using the snowball sampling method and interviewed using a semi-structured questionnaire from July 15, 2023, to July 20, 2023. Descriptive statistics, an independent sample t-test, a chi-square test, and indexing were used to analyze the data. The study revealed that only 42% of farmers were aware of MSP, while an even lower proportion, just 26%, were aware of the FMTCL. The average FGP in the study area was found to be 2375 Nrs/quintal and 2811 Nrs/quintal for short-grain and long-grain paddy, respectively. The effectiveness of the policy was found to be staggering, with just 9% of surveyed farmers accessing MSP or higher prices. The respondents cited the late announcement of the minimum support price as the most severe obstacle to MSP implementation, followed by lack of awareness about MSP, non-availability of procurement companies nearby, middlemen or Galla’s as price determinators, FMTCL being the sole procurement company, high supply at peak time, quality variation in paddy grain, and porous borders. The study therefore calls for timely announcement of MSP, proper awareness programs, and expansion of procurement services.

Keywords: Minimum support price; Farm gate price; Paddy; FMTCL (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:zib:zbfabm:v:5:y:2024:i:2:p:73-78

DOI: 10.26480/fabm.02.2024.73.78

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