International Journal of Horticulture, 2024, Vol.14, No.3, 186-194 http://hortherbpublisher.com/index.php/ijh 191 2.2 Economics of potato production The average cost of production in the study area was found to NRs 209,238/ha with BCR of 2.02. BCR >1 indicated that the potato enterprise was profitable in the study area. The average productivity of potato was found to be 16.15mt/ha in the study area. The average gross margin per ha was found to be NRs 206,604. The average rate at which potato was sold was found to be NRs 32/kg. 2.2.1 Operational costs The total cost of production was found to be NRs 209,238/ha (in average) in the study area. Clearly, highest portion of the total production cost was attributed by labor cost alone (24.31%) followed by chemical fertilizers (17.1%) suggesting that the wage rate and rate of fertilizers was high in the study area. Alone labor and chemical fertilizer cost accounted for 41.41% of the total cost. Labor was used for performing different operations such as planting, weeding, fertilization application, earthing up, harvesting, loading/unloading and marketing. Field preparation, organic manure, tuber cost, irrigation cost, pesticide cost, harvesting cost, transportation cost, storage cost accounted for 12.13%, 4.02%, 10.92%, 1.85%, 7.47%, 13.37%, 6.77%, 2.002%, respectively of the total cost in the study (Table 5). Table 5 Total cost distribution of potato in the study area per hectare Items Average cost (NRs/ha) Contribution to total cost (%) Field preparation 25387.678 12.13 Organic manure 8416.73 4.02 Chemical fertilizers 35736.5 17.1 Tuber cost 22867.8 10.92 Labor cost 50882.1 24.31 Irrigation cost 3889.46 1.85 Pesticide cost 15640.9 7.47 Harvesting cost 27985.9 13.37 Transportation cost 14182.1 6.77 Storage cost 4188.94 2.002 Total 209238 100 Source: Field survey, 2023 2.2.2 Gross returns, gross margin, BCR Gross margin = Gross return - Total variable cost = NRs (206,604) Benefit cost ratio = Gross revenue / Total cost = 2.02 Where, Total cost of potato production (NRs/ha) = 209,238; Total revenue from potato production (NRs/ha) = 415,842 3.2.3 Marketing margin and Producer’s share Market margin is termed as the difference between the price paid by the consumer and price received by the farmers. Similarly, producer’s share is the proportion of the consumer’s payment received by the producers. Lower marketing margin and higher producer’s share ensures efficiency of marketing system hence they are the indicators of efficiency of existing marketing system. The marketing margin was found to be NRs 28/kg. Market margin = Consumer’s price (Pc) - Price received by the farmers (Pf) = NRs (28/kg) Producer’s share= Pf/Pc * 100% = 53.33% Where, Pc = 60; Pf = 32 2.3 Marketing It was found that potato growers sold their produce in bulk to local collectors mainly and supplied the produce to other nearby districts like Kathmandu, Nuwakot, Chitwan, Dhading. Some potato growers directly sold their produce to local consumers and consumers especially of Nuwakot district.
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