MATERIALS AND METHODS

          The present study entitled “Economics of Production of High Yielding Varieties of Paddy in Bardiya District, Nepal”.  An attempt has been made in this chapter to explain the sampling procedure adopted for the selection of VDCs, villages and respondents.  The analytical tools and techniques employed in achieving the objectives of the study are explained.  Further, different concepts followed in the study are also outlined.

SAMPLING TECHNIQUE

          An appropriate sampling is necessary for any research work accordingly the whole procedure was taken in the same manner.  The methodology involved is based on scientific principles and was completed through below mentioned steps:

SELECTION OF DISTRICT

          The purposive selection is done the gain more representative samples.  Thus, keeping in view the Bardiya district of Nepal was purposively selected for the study.  The people of the district were more confined towards the High Yielding Varieties of paddy cultivation.  Bardiya district is one of the most important paddy growing district of Nepal.

          Paddy is one of the main cereal crop of district and climatic conditions are suitable for the cultivation of paddy.

SELECTION OF VILLAGE DEVELOPMENT COMMITTEE

          The selection of the V.D.C. was done on the basis of purposive selection.  This method provide an equal and proportionate chance to individuals of population rightly.  A sequential list of V.D.C. of district Bardiya was prepared on the basis of population.  Then the Bhimamapur V.D.C. of district Bardiya was selected purposively for the study.  There were 31 V.D.Cs in Bardiya district each containing nine villages, so selected V.D.C. was made on the basis of High Yielding Varieties  of paddy cultivated area.  There have been some considerations in favour of selecting Bhimmapur V.D.C.  It occupies prestigious place in paddy cultivation.  Bhimmapur Village Development Committee is situated 32 kms away from the district headquarter (Gulariya).  Bhimmapur Village Development Committee was entirely surrounded by paddy cultivated area.

SELECTION OF VILLAGES

          The selection of the villages was done on the basis of random sampling technique.  A complete list of villages in the V.D.C. was obtain from the office of the Village Development Committee.  There were 9 villages in the V.D.C. The villages were arranged alphabetically. Two villages were selected randomly from the organized list of the villages in V.D.C.  Twenty percent villages were selected randomly from the V.D.C.

SELECTION OF FARMERS

          A complete list of the farmers engaged in agriculture (paddy production) and all High Yielding Varieties of paddy farmers of the selected villages were obtained from the village level workers, which was verified with the help of President of V.D.C. and other members of village assembly and V.D.C. authorities for the present study.

          Total farmers from the selected villages were categorized into three group on the basis of their operational holdings viz. marginal size group below 1 hectare, small size group 1-2 hectares and large size group above 2 hectares which are as follows :

Table 3.1   Details of size  groups.

          The farmers of the selected villages were arranged alphabetically in each size of group.  From each group, 75% farmers were selected randomly.  The selection of sixty farmers was done randomly out of which nine farmers were in the 1^st size group, seventeen farmers in the second size of group and thirty four farmers were selected in the third size of group.

          The village wise composition of different size group is presented in following table 3.2.

Table 3.2 :           Distribution of selected farmers in the selected villages of Bhimmapur V.D.C.

COLLECTION OF DATA

          The present study pertains to the agricultural year 2001-2002.  Data for the study were collected from both primary and secondary sources. 

          The primary data pertaining to the size of the family, farm assets, land use patterns, cropping pattern, costs and returns etc. were collected by survey method through personal interview of the paddy growers by pre-tested schedule.

          Secondary data regarding general features of study and socio-economic status of paddy farmers in the district.  It was collected from the respective office like District Agricultural Office and Statistical Office.  Published reports, bulletins, journals, Annual Agricultural Development Programme and Upalabdhi EK JHALAK  (F.Y. 2056/57) were helpful for the present study.

PERIOD OF ENQUIRY

          The period of enquiry was related to agricultural year 2001-2002.

METHOD OF ANALYSIS

          The collection of data was analysed with the help of tabular and statistical method of analysis to find out the results based on objectives.

ANALYSIS OF COST CONCEPTS

          Determination of the profit level is more affected by the element of cost taken into the consideration, the concept of costs have been classified in to four categories depending on the purpose of the study.

COST A₁ :    This gives the total cash expenses incurred by the owner or operator.  It included the following terms of costs.

1-               Value of hired human labour.

2-               Value of bullock labour.

3-               Value of machinery charges (except depreciation).

4-               Value of fertilizers and manures.

5-               Value of seeds.

6-               Value of insecticides, pesticides and weedicides.

7-               Irrigation charges (Canal water charges).

8-               Depreciation on farm implements (both bullock driven and used by human labour).

9-               Depreciation on farm buildings and farm machinery.

10-          Interest on working capital.

11-          Land  revenue paid to government.

COST A₂ :  It is equal to Cost A₁ plus rent paid for leased in land.

COST B :     It is equal to Cost A₂ plus imputed rental value of owned land and interest on fixed capital (excluding land).

COST C :  This is found by adding the imputed value of family labour to Cost B.This  gives the  commercial cost of production.

Interest on working  capital :The interest on working capital  is changed at the rate of 12 % for half year.

Rental value of  owned land :One forth of the gross value of  produce is taken  to imput the rental value of owned land.

Land revenue: The actual amount paid is changed with respect to land revenue.

Interest on fixed capital :Interest on the present value of fixed assets (excluding  land) such as farm buildings,implements and machinery,irrigation structure and equipment  livestock  (only work cattle) has been changed at the rate of 10%.

Depreciation :  It was worked out for the items like farm machinery , implements and farm buildings. Depreciation  was calculated at 10% of the present value  plus repairs. Total  depreciation  of the farm was apportioned on crop average basis.

MEASURES OF FARM PROFIT

GROSS INCOME

        It was obtained by adding the value of main product and by product. 

Gross Income =            Yield of main product (in qt.) x their prices (Rs.) + Yield of by product (in qt.) and their prices (Rs.)

NET INCOME OR NET PROFIT

          It is excess of gross income over ‘C’ (total cost) obtained by deducting all the expenses from gross income.

Net Income = Gross Income – Cost C.

FARM BUSINESS INCOME

          It is computed as gross income minus Cost A₂.

Farm Business Income = Gross Income – Cost A₂.

FARM INVESTMENT INCOME

          It is obtained by adding rental value of owned land and interest on fixed capital to net income.

Farm Investment Income =             Net Income + Rental Value of Owned Land + Interest on Fixed Capital

FAMILY LABOUR INCOME

          It is the return to the farm operator and his family and it is computed by deducting Cost B from gross income.

Family Labour Income = Gross Income – Cost B

CONCEPT AND TERMS USED IN THE STUDY

OPERATIONAL HOLDINGS :

          Operational holdings is that part of the holding which is actually under operation.

SIZE OF THE HOLDINGS :

          In the present study, the total farmers in the sample were classified into three groups based on operational holdings, viz.

Group I Size :  A marginal farmer is one who is having land holding below 1.00 hectare.

Group II Size :  A small farmer is one who is having land holding from 1.00 hectare to 2.00 hectares.

Group III Size :  A large farmer is one who is having land holding above 2.00 hectares.

Farm Assets :  Under farm assets items such as land, farm buildings, machinery, implements and bullock were included.

Family Labour :  A member of the household who works along with the other labour on the farms.

Cost of Cultivation :  All costs incurred in the cultivation of a crop.  It is calculated in rupees per hectare.

Cost of Production : It is calculated in rupees per quintal.

Cost of Production (Main product/By product) Rs./qt. =  

Cropping Patterns :  It refers to the crop composition of the total area.  

Net Cropped Area :  It is the actual area under cultivation in an agricultural year.

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