Production economics of jute farming in Sunsari district, Nepal

Abstract

Jute cultivation has shown decreasing trend in recent years globally despite the prospective demand. Being labor-intensive, with labor making up over 70% of the entire cost and technological advancements still not evident in farmers' fields limits productivity of jute in Nepal. This study aims to analyze the economic viability of jute production, factors affecting it and constraints of jute production in Sunsari district, Nepal. Well-structured and pretested interview schedule was used to acquire required data from 120 jute cultivators of Bhokhraha Narsingh and Duhabi municipality using random and purposive sampling technique. Benefit-cost ratio analysis and multiple regression were conducted using Excel 2019 and SPSS Version 25. Jute production is found profitable as shown by positive gross margin and the average Benefit-Cost ratio of 1.52. Highest education of the family, machinery and subsidy were positively significant with Benefit-cost ratio. Number of economically active female members had shown negative influence on benefit-cost ratio of jute production. Distance to nearest extension service center showed highly significant negative relation with benefit-cost ratio implying increasing distance lowers BC ratio by a greater extent. High cost of production and labor problem were ranked as major problem in sustainable jute production. To increase the jute productivity and sustainability, this study recommends focusing on labor issues and enhancing technology interventions. The findings of this study offer policymakers a foundation to implement strategies that strengthen jute production, fostering both economic stability and environmental sustainability in Sunsari district, Nepal.