ECONOMIC ANALYSIS OF COFFEE PRODUCTION IN GULMI DISTRICT, NEPAL

Sailesh Shrestha (), Madhav Sharma and Supriya Chaulagain
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Sailesh Shrestha: Institute of Agriculture and Animal Science, Tribhuvan University, Kirtipur, Kathmandu, Nepal.
Madhav Sharma: Agriculture and Forestry University, Rampur, Chitwan, Nepal
Supriya Chaulagain: Agriculture and Forestry University, Rampur, Chitwan, Nepal

Food & Agribusiness Management (FABM), 2024, vol. 5, issue 2, 103-112

Abstract: Coffee is an evergreen plantation cash crop grown in a hilly tract with a height of up to 5m, falls under the family Rubiaceae and genus Coffea. It is a popular beverage containing caffeine, a natural stimulant that can improve alertness and focus. Coffee is a foreign exchange earner. A total of 60 households were surveyed considering feasibility using a simple random sampling procedure in the five wards (1,2,3,5 and 6) of Satyawati rural municipality at Gulmi District to assess and analyze the economic analysis of production. Field visit, Household survey, Focus Group Discussion, Key Informant Interview, semi-structured interview schedule was employed to collect information as primary sources and published reports and data were used as secondary sources. The information obtained was coded, tabulated, and analyzed using Statistical Package for Social Science (SPSS) and Microsoft Excel. The research was carried out from 1st week of March to 2nd week of June 2023. Socio-demographic studies revealed that (61.7%) of the respondents were male and (38.3%) of the respondents were female. The overall average family size of the study area was found to be 5.05. The majority of respondents (46.7%) had an education up to the Primary level. Janajati and Aadibashi account for 60% of coffee producers. Subsistence and organic farming were the most common. (58.3%) of the coffee growers in the study area were involved in the farmer’s group. The average area under coffee production was 0.13 hectares. The total cost of production per hectare was Rs. 2,48,186. The total returns per hectare was Rs. 6,29,192. The benefit-cost ratio, based on a period of 15 years, was calculated as 2.53. The Net Present Value was calculated at Rs. 3,81,005. The positive Net Present Value indicates the project’s expected cash inflows. The Internal rate of return calculated was 22.75% indicating that the project is expected to generate a return that exceeds the cost of capital, making it an attractive investment.

Keywords: Benefit-cost ratio; Coffee; Gulmi; Production. (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:103-112

DOI: 10.26480/fabm.02.2024.103.112

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