I NTRODUCTION

 

Nepal is a small, landlocked and mountainous country, located along the southern slopes of the Himalayan mountain range between India and the Tibet Autonomous Region of China. It lies between 27º and 30ºN latitude and 30º and 88ºE longitude. The average length being 885 km, east to west and average breath is about 193 km north to south. The country can be broadly divided into three parallel geographical regions based on topography. Proceeding from the east to the west is the Terai, or lower elevation fringe of the Geogetic plain in the southern border at 100-500 m elevation with an annual rainfall of more than 1600 mm, the middle hills at altitudes between 500 m and the forest line at 4000 m, and the high mountains of the Himalayas in the north, extending above the forest line as high as 8000m. With more than 50% of the cultivated land in the country, the Terai is the granary of Nepal, mountain regions cover only 5% of the cultivated area.

 

          Agriculture is and will remain the dominant sector for providing income and employment for about 80 percent of the population.  Agricultural development is crucial for Nepal's overall economic development.  Agricultural production system in Nepal has been self-contained creating a very complicating system.  The population of Nepal has reached 20 million which is growing at 2.08 percent annually.  The national average farm size is estimated at 0.95 hectare per farm family.  Nepal is a small landlocked agricultural country with only 2.3 million hectares of arable land which is distributed among 2.2 million farm families.  Nepal's land area is composed of three distinct agro-ecological zones.  The southern most area comprising of 17 percent of the total land stretching east-west, called Terai is situated 75 to 300 meters above msl.  This agroecological zone occupies 55.51 percent of 2.3 million hectares of total arable land of the country. The northern most land area called Mountains, is situated above 3000 meters above msl to the top of the world and consists of 15 percent of the land area but only 6.97 percent of total arable land. Between these two is the Hill area, between 300 and 3000 meters above msl and occupies 68 percent of the total land area but only 37.52 percent of total arable land (Rames B. Munankami 1995).

 

          The growing economic prosperity in Asia is a crucial factor that determines the availability of labour, water and land for rice cultivation.  The competing demand for these inputs in various economic activities affected their relative scarcities and prices and changed the relative profitability depending on the intensity of use of these inputs in various economic activities (Hossain, 1996).

 

          Rice-wheat is a dominant cropping pattern in Nepal, occupying about 43% of the rice areas and is most common in the foothills and medium-rainfall hills of Nepal, including Kathmandu Valley.  In the mountains, the pattern is practiced in the medium-rainfall area.  In the Terai, rice-fallow is a major cropping pattern in the high rainfall area, and covers about 56% of the rice area.   The rice-maize rotations is more common in the high rainfall Terai area.  Double rice cropping, which covers only 2% of the rice area, is mainly practiced in low-and medium-rainfall areas of the Terai and the foothills where irrigation facilities area available (Uppadhyay, 1996).

 

          Rice is one of the most important staple food crop of the country, accounts for more than 50 percent of the calorie intake of the Nepalese people. The crop is grown in different agro-ecological zones accounting for more than 50 percent of the total agricultural area and production. About 73 percent of the total rice area is located in flat plains of the Terai. The mid-hills and high-hills occupy only about 24 and 3 percent of rice area, respectively. The crop is grown in Nepal ranging from 60 m to 3050 m masl, the highest rice cultivation point in the whole world (Jumla District) (Shahi and Heu, 1979).

 

          Rice (Oryza sativa) in Nepal has been cultivated since before Vedic time. Nepal is considered to be one of the countries of origin in South Asia. Its description is found in the Veda and other Nepalese literature written in 1500 B C.  The cultivation of rice is mentioned even in the ancient literature of 2800 B.C.

 

          However, rice research was started in 1951 in Nepal (Mallick, 1981). A total of 930 local varieties from 54 districts were collected and intensive evaluation was carried out at Parwanipur and Khumltar. Initially, exotic rice variety from Taiwan were introduced, evaluated and were found to be high yielding in the Kathmandu valley. This greatly inspired to focus on rice varietal research and development. Subsequently, introduction and evaluation of indica rice lines were carried out since 1959 at Parwanipur Agriculture Station. After testing of various exotic materials at Parwanipur, CH-45 was recommended as the first modern variety in Nepal. The variety is still popular in various rice growing areas where double rice is commonly grown.

 

          The area under rice increase from 1.2 million ha. in early 1970s to about 1.51 million ha. Roughly, two thirds of their increase was in the hills (Anonymous, 1996). The Terai region (60-900 masl) constraints nearly 73% of the area and 75% of the total production.  Mid-hills (900-1500 masl) and high-hills (1500 masl) have 24 percent and 3 percent of total rice area producing 23% and 2% of rice production, respectively (C B S, 1996).  The total rice area gradually increased from 1.45 million ha during 1988-89 to 1.51 million ha. in 1996-97 with 0.43 million tons increase in total production.  The productivity also increased from 1.76 to 2.46 t/ha. in the span of 25 years (Table 1.1).

 

 

 

 

Table 1.1 :           Trend in rice area, production, productivity of rice in Nepal.

 

Fiscal Year

Area (000 ha)

Production (000 t)

Productivity

(t/ha)

1972-73

1140

2010

1.76

1973-74

1227

2416

1.97

1974-75

1240

2453

1.98

1975-76

1257

2605

2.07

1976-77

1262

2386

1.89

1977-78

1264

2282

1.81

1978-79

1263

2339

1.85

1979-80

1254

2060

1.64

1980-81

1276

2464

1.93

1981-82

1297

2560

1.97

1982-83

1265

1833

1.45

1983-84

1334

2757

2.07

1984-85

1377

2709

2.07

1985-86

1391

2804

1.98

1986-87

1333

2372

2.02

1987-88

1423

2982

1.78

1988-89

1450

3283

2.02

1989-90

1433

3390

2.26

1990-91

1455

3502

2.37

1991-92

1412

3223

2.41

1992-93

1262

2584

2.28

1993-94

1454

3496

2.05

1994-95

1420

2928

2.06

1995-96

1496

3578

2.39

1996-97

1511

3711

2.46

 

 

          About 79% of the rice is grown under rainfed conditions, 70% under rainfed lowland and 9% under upland conditions.  Only about 21% of the rice area is irrigated, either fully or partially (NARC, 1996).

          Efforts to increase rice production and productivity in Nepal by developing several modern rice varieties (MRV) along with management technologies can be attributed to the National Rice Research Program, because more than 50% of the rice areas are planted to MRVs.  Altogether 42 rice varieties have been recommended so far.  Among them, Masuli one of the oldest variety, is still the most popular and widely grown in the country.  Recently, Makwanpur-1, Sabitri, Radha-4, Radha-7, Radha-11 and Radha-12 are also gaining popularity among the rice growers at different rice growing environments (Upadhyay et al., 1996).

 

SIGNIFICANCE OF RICE IN THE NATIONAL ECONOMY

 

          The agricultural sector employs more than 80% of the labour force, producers, nearly 50% of the gross domestic product (GDP) and generates a significant part of the export earnings of Nepal (Ministry of Finance, 1997).  With in this sector, rice is by far the most important staple crop of the country.  Its importance in the national economy can not be overstated, as the country’s economy is predominantly rural and agrarian.  The crop is grown in about 1.51 million ha with a total production of 3.7 million tons and a productivity of 2.46 t/ha.  It contributes nearly 20% to the agricultural GDP and 54% to the total food grain production of the country (Ministry of Finance, 1995).  It has meets more than 50% of the total calorie requirement of the Nepalese people.

 

          Rice crop has three important by products which contributes substantially to agriculture and agro-based industry in Nepal.  Rice straw meets about 32-37% of total digestible nutrients required for 8.6 million Livestock unit.  It especially accounts for a large share of Livestock feed during scarcity of green fodder.  It is also used as bedding materials for livestock in winter, thatching for house and raw materials for composting making and paper industries.  Farmers often sacrifice grain yields and grow tall varieties with high straw yields to meet above mentioned requirements.  Rice bran is another by product that is also used as livestock feed.  It is preferably fed to milch and draft animals.  In turn, about 39 million tons of dung is available annually from cattle and buffalo population in addition to milk and meat.  Use of dung as natural fertilizer plays a key role for sustainable crop production and productivity, as the Nepalese resource-poor farmers cannot afford for chemical fertilizers.  Rice husk is also an important by-product which is used as fuel energy for running some industries.  Over the past 25 years, rice production has increased by almost 50% in the country.  The increase in production is partly attributable to increase in rice area and partly to MRVs and other management technologies.  Regardless of low successful it has been in the past, research program in 25th anniversary needs re-examining its role and operations in the light of new circumstances.

 

STATEMENT OF THE PROBLEM

 

          The cultivation of high yielding varieties of paddy is a most profitable crop in Bardiya District of Nepal. The root of the problem can be traced to resource and the nature of agricultural sector in Nepal, which is not yet geared to suit the need of modern technology, which the farmers generally face in the area of study. The problem apparently seems to be that the crop is much capital and labour intensive besides the prices of the rice in the market fluctuates from year to year, month to month and even week to week.

 

          The other problems are the different size of holdings, lack of knowledge of the latest modern Techniques, unavailability of fertilizers, Irrigation and transportation of rice for marketing. The problem apparently seems that improper technical practices and marketing schemes, which is likely to discourage the farmers to take up this business extensively. At the time of the producer face the problem of disposal of the product at the post harvest time because the investment to net crop and low prices. There is no other opportunity to the farmers to sift from paddy to other crops because of the agro-ecological condition is only suitable for paddy in Kharif crop.

 

JUSTIFICATION AND IMPORTANCE OF THE STUDY

 

          Agriculture is the dominant sector for providing income and employment for about 80 percent of the population. The present study revealed the nature and extent of investment for the farm inputs required for rice cultivation and problem faced by paddy farmers in the study period of its cultivation of rice in the study area. The main purpose of the study was to study the economics of production of H.Y.V. (paddy) crop for different types of farmers in Bardiya District of Nepal. The findings of present study will help different categories of farmer to increase faced the challenges in production of paddy on their farms.  The study will encourage further research to increase the economic of paddy growers in Nepal.

 

OBJECTIVES OF THE STUDY

 

The specific objectives of the present study are as follows:

 

1)      To study the farm structure and cropping pattern of the different size of farm in the study area.

 


2)      To work out the cost of production of high yielding varieties of paddy on different size of farms.

 

3)      To find out the benefits received from the production of high yielding varieties of paddy on different size of farms.

 

4)      To find the problems faced by high yielding varieties of paddy producers in the study area.

 

 

HYPOTHESES

 

To achieve the proposed objectives the following hypotheses were formulated:

 

1)      Production of high yielding varieties of paddy is profitable crop for all size of farms.

 

2)      As the size of farms increases, the cost of production also increases.

 

3)      Most profitable size of farms  is small size of farms.

 

 

 

Limitation of the Study

 

This study suffers with several limitations, some of which are mentioned here :-

 

1.                The findings of this study is based on the oral replies of the respondents and the personal observation of scholar at the time of survey for collection of data, since traditional farmers do not maintain any farm record, hence the objectivity of this study is limited to the ability of respondents to recall and to their memory in furnishing the required information.

 

2.                Due to limitation of time, only 60 samples were studied.

 

3.                The Nepal rural and urban areas are Maoists infested area so it is difficult to cover the larger area for the study, so the study was confined only one district and one Village Development Committee.

 

4.                The study is planned to cover only one agricultural year 2001-2002 which may not have it’s impact on future.

 

5.                The study is identified as Terai Region of Nepal, which has a limited scope of agricultural development specially in Kharif season rice is constrained enterprises of Terai farmers.

 

PLAN OF THE RESEARCH

 

          The thesis is presented in six chapters, in the current chapter, I have discussed the importance, scope, objectives, hypothesis and limitations of the study. In subsequent chapter II, review of literature has been presented. Chapter III deals with the methodology used in the study, which includes sampling designs. Statistical tools and concepts used in the present study. Chapter IV describes the main agro-economic features of Bardiya district of Nepal as background information which made use it for interpretation of the results. In Chapter V, the results of the present study are presented and discussed. Chapter VI presents summary and conclusions inferred from the results and findings. Suitable measures also have been suggested from the result of the study .

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