Efficiency of Resource Allocation of Large Cardamom Production: A Case for Nepal East Corridor

Abstract

Aim: This research aimed to assess the resource allocation efficiency of large cardamom production in Nepal east corridors. Method and Duration of Research: A comprehensive analysis of socio-economic characteristics and economic aspects of large cardamom production was conducted using data collected in 2022 in eastern corridor Nepal with 480 samples. Result: The socio-economic characterization of large cardamom farmers revealed that the majority of households were headed by males (75.4%), and most had kacchi and semi-pakki houses (77.3%). Nuclear families were more prevalent (71.9%) than joint families (28.1%). Basic education was the most common educational level among household heads (51.7%), and Aadibasi/Janajati was the predominant ethnic group (52.9%). The study identified significant associations between family types and members abroad with the study corridors (p < 0.05). The economic analysis revealed the capital costs and labor costs involved in large cardamom production over a six-year period. Gap filling had a significant positive impact on Marginal Value Product (MVP), increasing it by 182.21 units (99.45%). However, certain factors like chemical costs had a negative impact on MVP, reducing it by 38.33 units (102.61%). Resource use efficiency analysis showed that labor for postharvest activities positively influenced MVP, increasing it by 1.52 units (34.27%). On the other hand, transportation labor had a negative impact, decreasing MVP by 9.89 units (110.11%). Conclusion: The study contributes valuable insights for policymakers, researchers, and farmers in understanding the socio-economic and economic dimensions of large cardamom farming in the study area. Addressing gaps in production, optimizing resource utilization, and focusing on postharvest activities can lead to improved resource efficiency and higher returns for farmers. The findings are crucial for designing targeted policies and interventions to support the large cardamom farming community and promote sustainable agricultural practices.