Profitability and resource-use efficiency of sugarcane production in Nawalparasi west district, Nepal

Abstract

The study was undertaken to assess the profitability and resource-use efficiency of sugarcane producers in Nawalparasi West district, Nepal. The primary data were collected from 135 sugarcane farmers’ personal interview. Cost and return analysis and Cobb-Douglas production function were used for analysis. The B:C ratio of main crop was found 1.02 and ratoon crop was 2.08, whereas overall B:C was 1.35. Labor, setts, irrigation and nutrient were found to have significant and positive effect on gross return of sugarcane. Furthermore, labor and tillage hour were found to be over-utilized whereas irrigation, nutrient and setts were found to be underutilized. Insufficiency and unavailability of chemical fertilizer, absence of irrigation and drainage facilities and unavailability of quality setts were reasons for underutilization. Assurance of availability and affordability of setts, fertilizers, irrigation and intervention of modern-integrated agro-machineries can play significant role for efficient use of resources. Moreover, subsidy on inputs and mechanization are recommended to reduce the cost of production and maximize the profit.