Analysis of Resource Use Efficiency of Areca Nut (Areca catechu) in Jhapa, Nepal

Abstract

Aims: The study aimed to assess the resource use efficiency of areca nut production in Jhapa, Nepal. Methods and Duration of Research: The study was conducted in Jhapa, Nepal, in May-June 2019 to appraise the efficiency of resources used in areca nut farming. Three municipalities of Jhapa were purposively selected. A total of 90 areca nut growers were sampled using a simple random sampling technique. Data analysis was carried out using descriptive statistics and production function analysis. Results: The average gross margin per ha was found to be NRs. 251,232 and Benefit- Cost (BC) ratio was 2.15. Production function analysis showed that inputs such as nutrients, irrigation and labour significantly influenced gross income. The return to scale for areca nut production was found to be 1.041, indicating increasing return to scale. Additionally, it was found that resources like nutrients, irrigations, labour were underutilized. Conclusion: The efficiency of areca nut production can be enhanced by optimizing resources use. It is recommended to increase the application of inputs such as manure, fertilizer, and micronutrients and to improve irrigation facilities to maximize returns for farmers.