Resource use efficiency and economies of scale for ginger production in Ilam district, Nepal

Year 2021, Volume: 5 Issue: 4, 645 - 650, 15.12.2021

Anish Shrestha , Shiv Dhakal , Santosh Marahatta , Ankit Koirala

https://doi.org/10.31015/jaefs.2021.4.25

Abstract

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.

Keywords

Economies of scale, ginger farming, resource use efficiency, return to scale

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